It’s probably not too surprising that the category of motorized shade controls just keeps rolling. Thanks to the soaring success of lighting fixtures and lighting controls, the complementary automated shades portfolio effectively creates a force multiplier for the extent of functionalities and applications integrators can design for customers, according to CE Pro’s 2024 Shade Controls Deep Dive.

Those clients are represented in the residential and commercial markets, but per 2024’s Deep Dive, the main sector of success for shades remains on the middle-to-high-end new construction residences. Integrators report installing a median of 10 automated shades per project overall at a median end-user cost of $25,000 in 2023. 

As we’ll note below, besides the increasing residential revenues, if there’s still a relatively untapped opportunity to find more shade customers it’s on the commercial side and the plethora of potential project types that can benefit from motorized window treatments. 

Revenues on Shades Jump $10-$15K Among Integrators

Integrators are experiencing a strong uptick in shade project pricing at the high end of the residential market, as jobs costing over $50,000 increased 12 points to more than one-quarter (26%) of work.  

The $25K median shade project cost is approximately $10K-$15K more than last year’s most common range of job pricing. 

2024 Lighting Controls and Fixtures Report

Lightapalooza took place in late February, and the growth of the event has mirrored the rapid ascension lighting fixtures and controls.

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The biggest jump dealers experienced in 2023 was in the 6%-10% of projects in which automated shade controls were integrated, nearly doubling last year’s percentage in that range. Just as with 2022, 11% report installing no shades at all, however, leaving plenty of dealers yet to capitalize on this lucrative category.  

As usual for our annual Shade Controls Deep Dive, this breakdown of shade solutions combines exterior motorized shades/awnings/pergolas; hardwired motorized window treatments/shades; and battery-powered treatments/shades for 2024. 

Integrators gained the most points in the 9-15 shades per project range, spec’ing that amount in 38% of systems, an 11% increase from the previous year. The median number of shades per residential project did not change from 10. 

So, with the median cost of motorized shade controls projects at $25,000, that equates to $2,500 per shade for that work, including equipment and labor. For the surging amount of projects that are on that upper end of the 9-15 range, that means up to $37,500 potentially in just shade revenues for that work. 

It’s not just new construction houses that are great shades targets for integrators. Surveyed dealers reflect the rise of motorized shades as one the hottest categories in the retrofit market too, capitalizing on the battery-powered solutions. 

Plus, the percentage of integrators who don’t install them in existing residences dropped like a stone from 15% to a mere 2%, while 17% more dealers report specifying shades in 11%-50% of retrofits last year. 

Commercial Work Still Offers Much Room to Grow 

While dealers were bullish on commercial projects based on CE Pro’s State of the Industry report findings earlier this year, half the time automated shades are not included in the proposal. 

The MDU market appears to be one in which dealers are leaving money on the table. Last year, the vast majority (75%) of integrators spec’d them in only 10 or fewer projects. If you consider MDUs, there are not only individual residences to add shades, but integrators can outfit common rooms/lobbies, property management and other offices, outdoor cabanas by the pool, and more. 

Findings from 2024’s Deep Dive shows integrators are missing out on automated window treatment opportunities with resimercial and light commercial customers as a whopping 80% include shades in zero or only 1%-10% on projects. 

Dealers on average are upping the percentage of shades that get spec’d, however. The number of jobs that integrate motorized shades on 10% or fewer projects sank 11%, while the percentage of companies that install them in 11%-25% of all jobs skyrocketed up 15%.    

As far as installing shades in a single room or area of a smart home, 2024’s deep dive doesn’t show those percentages as differing much from last year with no range being addressed more than 22%. This provides a solid chance for upselling the number of rooms per job but also underscores that the majority of motorized shades projects are whole-home designs — which makes sense given that integrators are spec’ing 10 per project.    

Integrators continue to capitalize on the outdoor technology category, installing at least one outdoor shade solution in 1%-10% of projects, an impressive 20% increase from 2022. This data shows CE pros are overlooking awnings, pergolas, gazebos and other structures that can benefit from automated shades.    

Many more integrators are spec’ing smaller window sizes — 81% install windows 30 inches or narrower in up to one-quarter of shade projects compared with only 38% in 2023, likely due to more secondary rooms being addressed. 

Larger shades are installed much more commonly than those less than 31 inches wide, in 37% vs. 8% in half of their projects, respectively. 

Luxury residences may be being built with even larger windows to follow circadian trends in health and wellness projects because they can control lighting and shades in tandem when it comes to natural vs. artificial light. Or they have incredible vistas that can make automated shades both a wow factor and pragmatic. The number of supersized shades (61+ inches wide) projects surged by 14% year-over-year. 

The Formal Living Room leapt over Primary Room and Great Room as the most common place to install motorized shades in residences. Home Offices and Outdoor Areas were the biggest areas of growth last year, as those spaces picked up significant traction to move into fourth and fifth spots, respectively. 

Project Proposals Largely Follow Trending Areas for Home Improvement

Channel trends of privacy, energy savings, design, outdoor living, and versatile workspaces are reflected in the types of shades spec’d on a job proposal. Like lighting fixtures, this category’s leading designs include a variety of styles for dealers to incorporate and create a comprehensive solution throughout the whole house. 

As per 2024’s deep dive survey results, combinations of window treatments design these days might be a mix-and-match of Floor-to-Ceiling Windows; Soffit/Fascia/Pocketed Shades; Motorized Drapes; Blackout Shades; Doors; Outdoor Awnings; Exposed Roller Shades; Hard-to-Reach; Windows; Skylights; and Curved Windows . 

Wire-free automated window treatments are still slow to pick up traction overall. Over half (52%) of dealers employ battery-operated window treatments on 25% or fewer projects. 

Looking ahead to 2025, dealers anticipate their hardwired shades business to remain busy. Three-quarters expect to grow, including a major contingent predicting a greater-than 6% growth. 

In terms of battery-powered interior shades installations sales are also anticipated to be brisker than last year. Nearly 30% of integrators predict growth between 1% and 10% next year. 

Outdoor shade business also remains a segment ripe for proposing and extending customers’ living zones as the demand for outdoor technology keeps rising among homeowners, builders, and designers.   

Perhaps realizing their widespread impact on convenience and other lifestyle habits, homebuilders have been very welcoming to incorporating motorized shades control of late. Roughly 85% of dealers installed them in 3 out of 4 new construction projects in 2023. 

The latter category, in addition to builders, highlights the slow embrace of collaborating with lighting designers on projects. For starters, we and integrators have preached about the key ability to get in on a project earlier in the process.  

In this year’s Deep Dive, dealers report lighting designers to be much more involved in their projects over the past 12 months. Not only did the number used in zero jobs nosedive from 22% to 6%, but every range of collaboration percentages improved except for 6%-10%. 

Product Availability, Fabric Choices a Primary Pain Point

Of course, the most important aspect of motorized shade controls installation is the compatibility with third-party control systems. That easily topped the criteria of highest-priority features for how dealers select their shade solutions suppliers. 

In this year’s top 7 list of integrator-requested features, the only change was a flip-flop between fabric choices and product availability in the Nos. 3 and 4 positions. Second was motorization speed/quietness, while 5-7 were flame retardant level, flammability of shades, and use of sustainable materials. 

What qualities are you looking for in automated shades? Is your business growth on par with others? Can you find more light commercial projects to include shades? The party seemingly is not drawing to a close end anytime soon. 

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