A panel of industry leaders gathered at CEDIA Expo/CIX 2025 for a Smart Stage session, offering an in-depth look at the health of the residential as well as the commercial AV industry. Representatives from CEDIA, Oasys, ProSource, HTSA, Ellipsys and Azione shared their perspectives on the year’s economic rollercoaster, persistent challenges and upcoming trends. This discussion provided a comprehensive overview of where the two industries stand and where they will head in the future.
State of the Residential and Commercial AV Industry
The consensus among the panelists was one of cautious optimism. The year began with significant uncertainty, driven by tariff threats and economic instability. However, the market has shown resilience, with sentiment improving considerably as the year progressed.
Daryl Friedman global president and CEO, CEDIA, shared insights from a recent survey conducted by the organization, revealing that “86% of members and non members we polled felt that they were optimistic about the industry.” He noted that while the start of the year was tentative, the situation has since stabilized.
This positive outlook was echoed by others, though perspectives varied between the residential and commercial sectors. Hank Alexander, director of Oasys, Nationwide Marketing Group, representing the commercial market, described a slightly different trajectory, noting softness in the fourth and first quarters but remaining optimistic. For the residential side, potential interest rate declines are a source of positive anticipation. Jim Pearse, president, ProSource, commented, “As interest rates come down…it’s really going to help the home builder business.”
Jon Robbins, executive director, HTSA, confirmed a strong performance, stating, “We’re anticipating a solid double digit increase over last year.” Patrick McCarthy, executive director, Azione, observed a similar pattern of a mid-summer dip followed by a strong recovery. He noted that while regional differences exist, “we’re rocketing now.”
Residential and Commercial AV Face Labor Shortage
Despite the overall positive outlook, both industry face significant hurdles. The most prominent and universally acknowledged challenge is the labor shortage. Panelists agreed that finding, training and retaining skilled technicians, project managers and sales staff is the number one obstacle to growth.
As Friedman put it, “what’s happening with labor is poaching…what we need to be doing is bringing new blood into the industry.” This sentiment was shared across the panel. Chris Whitley, executive director, Ellipsys, emphasized the impact on the commercial side, where project delays compress schedules, exacerbating the labor crunch. “The real economic headwind for our guys is labor,” he stated.
Opportunities for Growth and Innovation
With challenges come opportunities for growth and innovation. Panelists highlighted several key areas where integrators can focus their efforts. For those looking to diversify, the commercial market offers promising avenues, particularly in digital signage. Whitely advised, “I would look into digital signage and more of the retail [vertical], which is also driven by the interest rate.”
Workforce development itself is a major opportunity. Industry groups are actively creating pathways for new talent. For instance, CEDIA has launched the CEDIA Foundation to provide free training for aspiring professionals. Friedman shared the success of a pilot campaign: “We started a pilot campaign, it was called ‘100 Texts in 100 Days’ to see if we can get 100 new people who’ve never touched this industry to take our certification prep work…We didn’t get to 100. We got to 150.” This demonstrates a clear interest in the profession when the story is told effectively.
Anticipating Future Trends
Looking ahead, artificial intelligence (AI) dominated the conversation as the most transformative trend on the horizon. From operational efficiencies to new service offerings, AI is poised to reshape the industry. Whitley urged attendees to get ahead of the curve: “You should be experimenting with AI in different and weird ways…it’s coming whether you like it or not. AI will be here.”
Other emerging areas include robotics and advanced power solutions. Panelists see a future where integrators move beyond traditional AV to offer comprehensive lifestyle and wellness technologies. This evolution requires a shift in mindset from being a “box seller” to a “lifestyle consultant and designer” as described by Friedman.
The Future of Residential and Commercial AV
The panel concluded with a shared sense of excitement for the commercial and residential AV industry’s future. The buzz on the CEDIA Expo/CIX show floor reflected a passionate community dedicated to innovation and delivering exceptional experiences. The core message was clear: the two industries are dynamic, resilient and full of opportunity for those willing to adapt, learn and lead.
As Robbins stated, “It’s our job to be out there looking for some of these technologies that customers will use…and we just have to figure out the right way to get it to them.”
