Editor’s note: This Q&A kicks off a new series of interviews with industry professionals focused on their predictions for the year ahead. Additional insights from integrators and executives on what to expect in 2026 will follow.
Patrick McCarthy of Azione Unlimited offers a clear-eyed look at what will separate winning integrators from the rest in 2026. From the growing importance of recurring revenue and operational discipline to where energy, lighting, cybersecurity, and AI truly fit into the business, McCarthy cuts through the hype to focus on the fundamentals he believes will define long-term success in a shifting market.
CE Pro: What will define success for integrators in 2026?
McCarthy: Success comes down to mastering the “boring” stuff. It’s exactly what we called eating your vegetables in Chicago. It isn’t just about the flashiest install anymore. It is about recurring monthly revenue and operational grit. CEPro reported in 2024 that service contracts became the clear path to earning RMR with one-third of dealers now offering them. That is a big jump from the year before. Success in 2026 means shifting from being a project-based business to a service-based utility for the home. It is about drilling down on the basics like financial discipline, labor utilization, and team development to endure the moments when pipelines get skinny.
CE Pro: Which category is poised for the biggest shift next year?
McCarthy: Energy is finally ready to make the splash we’ve been waiting for. The conversation has shifted from being green to power reliability. With grid instability and rising costs, homeowners are starting to view battery storage and energy management as essential insurance policies for their lifestyle rather than just eco-accessories. That said, Lighting and Shading aren’t going anywhere. They are still the gateway for design-centric clients and remain top-tier growth categories for profitability.
CE Pro: What are homeowners going to demand that they’re not asking for yet?
McCarthy: They are going to demand the “digital concierge” for content. The fragmentation of streaming services is becoming a nightmare for the average user, especially with live sports. Clients will soon expect their integrator to curate the experience so they can actually find the game on Thursday night without navigating five different apps. Additionally, they will demand enterprise-grade cybersecurity as a standard utility, not an add-on, as their homes become increasingly vulnerable targets.
CE Pro: What’s the biggest business mistake integrators could make in 2026?
McCarthy: The biggest mistake is thinking that what got you here will get you there. You cannot avoid the vegetables of a solid business by skipping RMR, ignoring past clients, or neglecting marketing. We are seeing a shift where the safety nets of the middle market are shrinking leaving some dealers wondering where cashflow is going to come next. Relying solely on a few massive “whale” projects without a service tail is dangerous. Dealers who fail to operationalize their service departments and treat them as profit centers rather than cost centers will get left behind.
CE Pro: Where is the industry overhyping—and where is it underestimating—2026?
McCarthy: Overhyped? The idea that AI is going to magically sell systems or replace the human element of high-touch luxury service overnight. Underhyped? Also AI. The operational efficiency AI brings to the back office right now is barely even scratching the surface. We are underestimating the ability to handle the grunt work like drafting documentation, generating proposals, and optimizing service routes. We are also underestimating AI in security, where analytics are already reducing false alarms and turning cameras into proactive guards rather than just recording devices.
