Demand for outdoor installations doesn’t appear to be cooling any time soon. As home or business owners invest more in their properties, the outdoor technology category continues to surge and deliver profitable opportunities for custom integrators, per CE Pro’s 2025 Outdoor Technology Deep Dive study. 

Key takeaways from this year’s research, which was conducted via survey in January, include a nearly $3,000 rise in median project costs in 2024 for performing virtually the same number of outdoor jobs as they did in 2023.

Median Project Cost Sees a Noteworthy Uptick

The median number of outdoor projects installed in 2024 did have a very slight .2 dip from the previous survey, down to 9.1, however, the increase in end-user cost enjoyed a 22% rise to a median $14,201, well up from the $11,668 figure in 2023. It continues an upward trajectory of outdoor project costs, which stood at slightly less than $9,000 in 2022. That means the median integrator earned nearly $130K ($129,229.10) in revenues last year from outdoor installations alone. 

The biggest growth segment came in the $10K-$25K range, which ticked up 6 points. That certainly underscores the median price change and that the number of dealers saying their outdoor business grew last year was a 10-point jump from 2023. 

Integrator Outlook Mostly Positive with Some Storm Clouds

Integrators expect the outdoor technology market to remain hot this year. When asked about their outlook for 2025, the numbers remained relatively unchanged from 2024, with the biggest jump anticipated in the 6% to 10% category, up 7 points. Overall, three-quarters of dealers expect business to go up this year. 

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That being said, after a couple years of increasing project prices, the survey found that amid all the optimism, at least 11% more dealers than last year noted that they foresee their price points declining in 2025. 

Commercial Projects Seen to Pick Up Some Slack

Of course, outdoor systems installation goes far beyond the residential fences. The majority of integrators did a fair amount of outdoor commercial installations in 2024, which include restaurants, retail, hospitality, MDU complexes, and more.  

Transferrable residential tech systems such as AV distribution and controls deployed in these markets have enabled many dealers’ transitions to add more light commercial/resimercial outdoor revenue. 

Last year, nearly one in five integrators (18%) reported that jobs for commercial clients accounted for between 11% and 20% of outdoor business — that range rose 6 points from the year prior. 

Water & Irrigation See Small Uptick in Projects

As for the breakdown of a typical outdoor technology project, audio remains the most commonly installed category (26%), with home networks (22%) close behind. They account for nearly half of an outdoor budget, followed by security/surveillance (18%), video (15%); landscape lighting (11%); outdoor shades (5%); furnishings & structures (3%); and water/irrigation management (2%).  

Additionally, dealers are addressing in-house or subcontracting pool/spa controls on nearly one-quarter (22%) of outdoor installations. 

Water/irrigation, however, stands to increase over the next several years as homeowners hope to curb their utilities bills and water regulations become tighter in some states.  

Audio, Video, Network Remain Most Popular in Outdoor Installations

In terms of audio, integrators have ever-growing options to pipe in music throughout the outdoor living area, patio, porch, landscaping, and pool area (around and in). As styles continue to expand, in-ground and above-ground loudspeakers are the most commonly installed and buried cable remains preferred over wireless. 

Staked satellite speakers that often are sold in bundles provide the next most popular way to serve up audio outdoors. With the increasing amount of commercial work as well as residential work encompassing expansive properties and outbuildings, 70-volt speakers are also being deployed often these days. 

Perhaps because of the introduction of more aesthetically pleasing in-ground and above-ground speakers, rock and planter speakers are not used as much. That could be an area where dealers can grab more money on the table with today’s design demands. 

When it comes to video, installers outfitted outdoor spaces with 8% more TVs and 9% more mounts in 2024 than the previous year. While counted separately from “large-format” displays and projection systems, outdoor TV specialists have been adding larger sizes like 65-inch models in recent years. TV enclosures often go hand in hand with the mounting solution. 

Lighting & Security Pick Up in Demand

On the lighting side, security (up 4 points) and staircase/railing lighting installs (up 2) grew the most within the lighting category last year. Other lighting areas were used around things like bug screens, heaters, grills, etc. 

Landscape/plant/fountain lighting applications led the way last year, while pathway lighting was the second-most deployed solution. Color-tunable lighting has become a stylish solution for differentiation and wow factor outside residences and commercial establishments.  

Since the pandemic, security has become prioritized among homeowners and resimercial clients. In addition to security lights, video surveillance cameras represent a high-demand area of a comprehensive security solution. Nearly two-thirds of survey takers (64%) noted they spec and install video cameras ‘Fairly Frequently’ or ‘Very Frequently’ on a project. 

On a related note, the two biggest challenges survey takers noted involve working with or competing with trades on projects. Working with landscaping contractors/designers was cited as the top challenge, followed by competing with other trades for the outdoor portion of a project… including the pool/spa companies. 

Where does your outdoor business stack up to the rest of the industry? Be sure to read the full Outdoor Technology Report to see where the market stands, and how you can grow your business forward.

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