Despite Roadblocks, CI Industry Grew in 2024, D-Tools Data Shows

If you were unsure about just how resilient the custom integration industry can be, data released this week by D-Tools should help answer any questions you might’ve had. According to the company’s 2024 Market Health Report, total installation sales increased 6.5 percent in 2024, with the average project contract hitting $17,535. This, in spite of the fact that the industry faced a slumping economy, inflationary pressures, and the whirlwind of an election season.

The report used data from over 175,000 proposals and 70,000 signed contracts in D-Tools cloud.

“The data from the 2024 Market Health Report provides a clear roadmap for integrators navigating an evolving business landscape,” Randy Stearns, CEO of D-Tools, said in a statement. “With rising project values, an increased focus on labor profitability, and shifting demand toward security solutions, this year’s insights highlight opportunities for integrators to refine their strategies, improve margins, and position themselves for long-term success.”

In addition to the top level findings, D-Tool said the report uncovered a number of essential industry trends and actionable insights that integrators should leverage for the year ahead. Among them:

• Bigger projects were more profitable. Perhaps not the most surprising finding, but still worth noting, is the fact that larger projects delivered better margins for integrators in 2024. Projects valued over $10,000 delivered margins of around 45-47 percent, while those under that threshold carried margins of 30-39 percent.
• Competition was up last year. D-Tools found that while integrators were creating more proposals in 2024 (up 10 percent over 2023), they saw their close rate drop to 53 percent (down from 59 percent), a sign that competition was up. On the positive side, the average value of a proposal increased over 5 percent last year to slightly more than $37,000.
• Labor rates increased. Integrators did bump their labor rates slightly in 2024. Labor accounted for 24.1 percent of contract value last year, compared to 22.2 percent in 2022.
• Top-selling categories. Display devices were the top-selling product category for integrators last year, according to D-Tools. They were followed by security solutions, which jumped from the number-four spot in 2023.

The full 2024 Market Health Report and other resources are available for D-Tools users and industry professionals through the D-Tools website.