2025 was an eventful year for the custom integration industry and for CE Pro’s coverage of it. Expectations evolved quickly, economic factors lead to an up-and-down year, new categories accelerated, and integrators found themselves navigating a market shaped by design ambitions, energy resilience, AI-driven efficiency and a renewed emphasis on long-term system reliability.
The CE Pro editors put their minds together to recap the year.
How Homeowner Expectations Shifted
What stood out most this year was how dramatically homeowner expectations shifted. Homeowners are no longer asking for “smart homes” in the traditional sense. They want environments that feel intentional and personal. Lighting continued to be the clearest expression of that shift. Designers, architects and homeowners treated lighting and shading as the creative bridge between technology and design, and integrators who embraced that conversation were brought into projects earlier and trusted more deeply. Reliability and energy resilience played a major part as well. Clients asked more questions about uptime, power quality and remote support, which pushed integrators to think beyond individual devices and focus on the total experience.
Security as a Lifestyle Feature
Security factored heavily into that experience. Physical surveillance emerged as one of the most consistent areas of homeowner interest, to the point where it has become more of a lifestyle addition than a pure security function. The presence of cameras alone helps put people at ease, and the ability to tap in remotely and respond to alerts became one of the most requested capabilities in new smart home projects. Integrators also reported a rise in unconventional requests. Clients increasingly asked for cameras not just for their own homes but for the homes of their neighbors as well, underscoring how comfort, visibility and awareness have become part of the modern residential ecosystem.
Categories That Surprised the Market
Several product categories showed unexpected momentum this year. Lighting and shading continued their rapid ascent, but networking may have grown even faster. Wi-Fi 7 became a must-have among high-end clients once they understood the improvements in stability and security. Outdoor entertainment remained strong. By contrast, early enthusiasm around VR and consumer robotics didn’t translate into real adoption. Homeowners gravitated toward core systems that simplify daily life rather than technology that still feels experimental.
Product Launches and Acquisitions That Mattered
It was also a significant year for product launches and acquisitions. Consolidation across audio and video reshaped conversations around long-term planning, product strategies and supply confidence. Moves by Harman, McIntosh, Sonance and others added new layers to how integrators evaluate brands. Networking saw similar momentum. NETGEAR’s acquisition of Exium introduced enterprise-style Zero Trust security concepts into the residential market. On the display and lighting fronts, manufacturers pushed harder toward design-driven solutions that allow technology to be present but unobtrusive.
How AI Quietly Became Essential
AI matured in practical, meaningful ways. It became a tool that integrators used quietly and consistently for documentation, scheduling, support, design proposals and daily communication. It wasn’t flashy, but it saved time and made small teams operate more efficiently. That dependable, behind-the-scenes layer of AI assistance is what mattered this year.
Trends That Fell Short
Not every idea gained traction. Wellness installations lost momentum for some integrators, and although a handful of consumer brands introduced new AI features, most control platforms in the custom channel have yet to release meaningful advancements. Even in the consumer space, the benefits often fell short of expectations.
Collaboration Across Trades Deepened
Collaboration with builders, designers and architects took another step forward. Designers in particular expected greater sensitivity around sightlines, fixture choices and the overall visual flow of the home. Builders relied more on integrators during early planning as systems grew more interconnected. The integrators who approached these partnerships with curiosity instead of defensiveness saw tangible gains in both opportunity and client trust.
Lessons to Carry Into 2026
If there is one lesson the industry should take into 2026, it is the importance of delivering experiences rather than systems. Integrators are no longer just technology experts. They help shape how people live. Their work spans design, energy management, entertainment, security and wellness. The companies that succeed will be the ones that continue to learn, invest in their teams and communicate clearly with homeowners and trade partners.
The pace of change is fast, but the opportunity has never been greater. CE Pro will continue tracking the evolution of this market as integrators redefine what the modern home can be.
