TradeScape – how is the smart home industry responding to market dynamics?

TradeScape – how is the smart home industry responding to market dynamics?

ISE Insights
02 Dec 2025
Mitch Klein, VP of Business Strategy – Sales, Sponsorships and New Business Development at CEDIA, answers our questions about the changes that tariffs and geopolitical uncertainty have brought about within the smart home industry.

TradeScape

How have recent geopolitical tensions and shifting trade policies impacted your members? What steps have they taken to mitigate the effects of these changes?

It’s been a mixed bag. Some members haven’t really felt the impact, while others – particularly those relying heavily on US brands – have noticed the effects of tariffs and shifting trade policies more acutely. What’s really changed is the mood: there’s a lot more tension and unease in the market. The US had always been a reliable trading partner, but that confidence has been shaken quite a bit. 

In response, many integrators and distributors have started diversifying – either by supporting more non-US brands or by sourcing product lines from local and regional manufacturers. It’s less about abandoning traditional partners and more about spreading risk. The goal is to keep projects moving and pricing predictable, even when the global situation isn’t. 

US suppliers have done a good job holding prices as long as they can. Suppliers are re-thinking their short-term global participation and growth. 

CEDIA has provided guidance and some legal language for integrator members to include (and edit as needed) in their contracts to protect themselves from the uncertainty of product cost. 

What lessons have you learned about supply chain resilience over the past few years, and how have companies adapted to ongoing disruptions or delays? Did the pandemic lead to any permanent changes in supply chain operations?

The pandemic forced everyone to rethink how they manage stock. Before 2020, most integrators ran pretty lean, relying on distributors to carry inventory. Now there’s a much greater emphasis on forward planning – buying in bulk when possible, keeping spare stock of core items like cabling, routers, and control processors, and building stronger relationships with local suppliers. 

It’s important to recognise how significant that shift is: small integration businesses aren’t typically used to holding large inventories. Fortunately, some distributors have stepped up with improved forecasting tools and better communication with integrators. There’s also been a lot of handholding for smaller or newer businesses to help them survive.  

Do you see trends where organisations are exploring new markets due to challenged trading conditions?
The past few years have encouraged a lot of businesses to diversify. We’re seeing more integrators step outside the traditional luxury residential market and take on projects in aged care, disability housing, multi-dwelling developments, and wellness – all areas that align well with their existing skill sets. 

There’s also growing crossover with the commercial sector, particularly as more clients want unified control and automation across both home and workplace. In some cases, members are even looking to export their expertise into countries where professional integration services are still emerging. 

Have your members made changes to their workforces to adapt to recent changes in trading conditions? Have skills shortages made any of these plans harder to implement?

Like everywhere, the biggest challenge right now is finding skilled people. There simply aren’t enough trained technicians coming through the pipeline. That’s why we’ve been advocating where possible to establish apprenticeships and get the industry recognised at Government level. 

In the meantime, many integrators are bringing in staff from adjacent industries – electricians, IT technicians, or even data specialists – and training them up in-house. That works in the short term, but we need to move away from this ‘self-taught’ approach if we want the industry to have real longevity. Others are relying more on subcontractors for programming or commissioning work to fill the gaps. What’s clear is that the skill profile of the industry is shifting: networking and IT knowledge are now absolutely essential. 

CEDIA launched the CEDIA Foundation in 2025, designed to provide students with financial support and guidance to address the workforce needs. The pilot programme, 100 in 100 days, aims to drive students to our industry and provide CEDIA training and certification. We had 150 applicants and have already placed three students with CEDIA members. 

Do you have any other comments?
The next big frontier is collaboration: not just between suppliers and integrators, but across trades. The lines between electrical, AV, networking, and building automation are blurring fast. 

CEDIA members are also diversifying their product and service offerings, with a focus on lighting and shade devices and control. 

We’re also starting to see a change in how value is defined. Clients are less focused on brand names and more on reliability, security, and the overall user experience. Those who can deliver consistency and peace of mind – regardless of product origin – will shape the future of the smart home industry. 

Stay informed!

ISE 2026 takes place in Barcelona on 3-6 February 2026. In our new Megatrends stream we will present sessions on TradeScape – the trading environment for the pro AV supply chain. For more updates on TradeScape and other industry megatrends, and to discover more about ISE 2026 as details are released, sign up for updates.

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