If "slow and steady wins the race," then the systems integration industry was a solid victor in 2024. According to the D-Tools Annual Review Report 2024, the combined residential and commercial technology installation market saw a moderate but unspectacular sales growth rate of 6.5% for the year, reflecting a steady demand for professional technology installation.

The data, derived from more than 175,000 proposals and more than 70,000 signed contracts registered in D-Tools Cloud in 2024, indicate strong demand, despite the economic difficulties resulting from inflation and electoral uncertainty. The 6.5% growth in 2024 represented a notable increase from 4.6% in 2023, when supply chain disruptions and runaway inflation hit the market. Growth was more robust in the first half of the year, while a slight decrease in the average size of projects was observed in the second half.

This free downloadable report can serve as a baseline for both integration companies and vendors to assess their own performance in 2024. The report details:

Average revenue of the integrating company by projects for the full year, broken down by first and second half

Average revenue from contracts signed by integration companies

Average number of proposals and closing rate of contracts signed

Primary categories of most popular installed equipment

Gross profit margins for both product and labor by project size

Engineering/negotiation/value rate discounting that takes place from proposal to contract

Percentage of proposals and contracts dedicated to equipment versus labor

The report also includes a list of eight key findings that integrators should consider in 2025.

Overall, 2024 demonstrated continued growth in the integration industry, with demand for larger projects, increased proposal activity, and higher equipment sales. Challenges include labor shortages and intensifying competition, while economic factors such as inflation and election uncertainty influenced contract values. Looking ahead, the industry's ability to capitalize on labor with high profit margins, expand service offerings, and adjust pricing strategies will determine long-term profitability and stability.