Home Smart thermostat market dials up the heat

Smart thermostat market dials up the heat

As ever more connected homes come online, a new study predicts the market for smart thermostats will quadruple to $4.4 billion over the next 10 years.

Navigant Research just released a report entitled “Communicating Thermostats, Smart Thermostats, and Associated Software and Services: Global Market Analysis and Forecasts.” The research study anticipates that global revenue for smart thermostats along with related services and software will grow to $4.4 billion by 2025 from $1.1 billion in 2016.

Smart homes remain one of the biggest catalysts for growth in connected thermostats due to the technology’s ability to allow consumers to cut costs on their energy bills. Meanwhile, smart thermostats are increasingly being used by utilities to help meet demand-side management (DSM) and energy efficiency requirements.

Additionally Navigant sees other emerging distribution channels as playing an increasing role in the growth of smart thermostat sales.

“Telecommunications and broadband service providers, home security companies, and heating, ventilating, and air conditioning (HVAC) installers are racing to incorporate advanced thermostats into their solutions,” said Navigant in a release. “Software and services—especially those that are cloud-based—have become a vital part of these more intelligent thermostats, providing data-based insights and opportunities that increase the value of these devices.”

Housing market and energy efficiency regs biggest drivers?

The potential for proliferation of smart thermostats hinges on the health of a market’s housing market and the rigor of its energy efficiency requirements.

“While predominately based within North America, the market for communicating and smart thermostats has begun expanding to Europe,” Navigant said. “Favorable conditions for these thermostats in terms of housing growth, climate, and policy also exist in Asia Pacific.”

The U.S. market continues to remain a global leader in adopting home-focused smart technology, with a recent study predicting one in four American homes will become connected in the next year. The report from August Home and Comcast’s Xfinity Home includes survey results that indicate as many as 30 million U.S. households are poised to add home-focused smart tech over the next 12 months.

In this survey, which included nearly 1,300 U.S. consumers, an incredible 18% indicated that they were strongly considering purchasing a new smart home product in the next 12 months. Of that percentage, 56% indicated that they had already installed at least one smart home product.

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