US value demand for smart and connected thermostats is forecast to decelerate markedly from the rapid growth of the 2012-2017 period to rise 18% per year through 2022, as demand becomes less comprised of initial product purchases and transitions to be more replacement-oriented. Demand for both products will continue to outstrip sales of non-smart types. Smart thermostats will retain a more than 70% share of the market over lower-tech connected types in 2022 based on their:
Furthermore, increasing consumer familiarity with smart home devices in general and optimism (however cautious) about the potential solutions they represent will underlie gains.
However, connected thermostats will continue to fill a key role in the market, appealing to consumers who may seek the cost- and energy-saving benefits of smart thermostats but are put off by their higher-tech features and/or somewhat higher price tag.
This study analyzes the market for smart and connected thermostats in the US, which totaled $640 million in 2017.
It presents historical demand data (2012 and 2017) and forecasts for 2022 and 2025 by product (smart thermostats and connected thermostats). It also features discussion of the primary sales channels used to purchase these devices, as well as detailed profiles of key product introductions and industry leaders, including Alarm.com, ecobee, Emerson Electric, Honeywell, Nest Labs (Google), and United Technologies.
Will the United States market see growth in this industry?
Yes! US value demand for smart and connected thermostats is forecast to decelerate markedly from the rapid growth of the 2012-2017 period to rise 18% per year through 2022, as demand becomes less comprised of initial product purchases and transitions to be more replacement-oriented. Demand for both products will continue to outstrip sales of non-smart types. Smart thermostats will retain a more than 70% share of the market over lower-tech connected types in 2022 based on their declining prices, superior performance, ability to integrate with various other devices in a smart home ecosystem, enhanced capacity to produce cost and energy savings.
What is a smart thermostat?
This study analyzes the US consumer market for smart and connected thermostats in both unit and value terms. Other related internet-connected HVAC equipment – such as smart appliances, humidifiers, and vents; separately sold activity and ambient temperature sensors; software add-ons; and accessories like fobs and dongles – are not represented in the data compiled herein, but they are commonly sold with or built into some of the profiled products, particularly smart types.
For the purposes of this study, a thermostat is considered smart when it:
Furthermore, connected thermostats refer to those that connect to the internet and allow for remote control via mobile app – features smart types also possess – but do not learn or take action independently, requiring user input.
Other thermostat types include nonprogrammable and programmable, neither of which support remote self-monitoring or autonomous learning and are excluded from the scope of this study. Also excluded are thermostats used to regulate temperature in appliances, as well as those marketed exclusively to commercial and industrial end users.
Therefore, this study covers smart and connected thermostats sold via conventional consumer markets for use in residences and small businesses.
The study also presents unit and value demand forecasts for smart speakers and hubs.
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Broadband internet access is essential for the effective operation of smart and connected thermostats, which depends on wireless communications between mobile phones and other smart devices. Therefore, it is extremely unlikely that consumers without broadband access would purchase a smart or connected thermostat. As a result, the necessity of extant broadband internet infrastructure to support key product features creates a ceiling for the total number of potential households that could install smart and connected thermostats.
As the most commercially viable IoT devices integrate with a broad range of platforms from a variety of manufacturers to support the diversity of brands a given household is likely to own, demand trends for smart speakers and hubs are key to forecasting the US consumer market for smart and connected thermostats.
From Alexa (Amazon Echo) to Bixby (Samsung SmartThings), the proliferation of virtual personal assistants (VPAs) has driven the development of increasingly sophisticated AI systems that can not only decipher human speech, process requests, and learn a user’s daily routine, but also leverage domotic (home automation) data to proactively learn household norms and identify disruptions to them. For example, most smart thermostats are equipped with geofencing capabilities, which enable the device to recognize when a household is empty and adjust the interior temperature to maximize energy efficiency.
The study will provide additional background information on technology & product innovation including:
Are you looking to answer any of the following questions?
With over 35 charts, tables, and graphs - and 100+ pages of analysis - this study will be able to answer the below questions and more:
SMART THERMOSTAT OVERVIEW
Smart Versus Connected Thermostats
Broadband Internet Subscriptions per Household
The Internet of Things
Smart Home Revolution: The Race to Automate the Home
Artificial Intelligence, Domotics, & Ambient Computing
Technology & Product Innovation
Activity & Ambient Temperature Sensors
Environmental & Regulatory Factors
Advantages of Smart & Connected Thermostats
Challenges Impacting Smart & Connected Thermostat Demand
Smart Home Integrations
Sales Channels for Smart & Connected Thermostats
Other Distribution Channels
Smart & Connected Thermostat Demand Forecasts
Value Demand Forecast
Volume Demand Forecast
Smart & Connected Thermostat Demand by Type
Key Smart Product Introductions
Carrier (United Technologies)
Nest Labs (Google)
Key Findings & Industry Composition
Research & Product Development
Mergers & Acquisitions
Energy Conservation Programs
Alphabet Incorporated (Google)
APX Group Incorporated
Emerson Electric Company
Honeywell International Incorporated
Johnson Controls plc
LUX Products Corporation
Tantalus Systems Corporation
United Technologies Corporation
Other Companies Mentioned in Study
Study Specific Methodology
Associations & Agencies
Related Freedonia Group Studies
SMART THERMOSTAT OVERVIEW
Table 2-1 | US Households with Broadband Subscription, 2012 - 2025 (millions)
Table 2-2 | Smart Home Speaker & Hub Retail Sales, 2016 - 2025
Table 3-1 | Smart & Connected Thermostat Demand by Value, 2012 - 2025 (million dollars)
Table 3-2 | Smart & Connected Thermostat Demand by Volume, 2012 - 2025 (million units)
Table 3-3 | Smart & Connected Thermostat Demand by Type, 2012 - 2025
Table 3-4 | Smart & Connected Thermostats: Timeline of Key Market Developments
Table 4-1 | Selected Smart & Connected Thermostat Market Participants
Table 4-2 | Selected Cooperative Agreements
Table 4-3 | Alarm.com: Key Product Lines
Table 4-4 | Alphabet: Key Product Lines
Table 4-5 | Vivint: Key Product Lines
Table 4-6 | ecobee: Key Product Lines
Table 4-7 | EcoFactor: Key Product Lines
Table 4-8 | Emerson Electric: Key Product Lines
Table 4-9 | Honeywell International: Key Product Lines
Table 4-10 | Johnson Controls: Key Product Lines
Table 4-11 | LUX Products: Key Product Lines
Table 4-12 | Schneider Electric: Key Product Lines
Table 4-13 | tado°: Key Product Lines
Table 4-14 | Tantalus Systems: Key Product Lines
Table 4-15 | United Technologies: Key Product Lines
Table 5-1 | Relevant Industry Codes
Table 5-2 | Abbreviations & Acronyms Used in Study
Table 5-3 | Macroeconomic Indicators, 2007 - 2022 (billion 2009 dollars)
Table 5-4 | Population & Households, 2007 - 2022 (million persons)
Figure 1-1 | US Smart & Connected Thermostat Market
SMART THERMOSTAT OVERVIEW
Figure 2-1 | Key Trends in the US Smart & Connected Thermostat Market
Figure 2-2 | US Broadband Households that Purchased Smart & Connected Thermostats, 2004 - 2017
Figure 3-1 | Key Smart & Connected Thermostat Product Trends
Figure 3-2 | Total HVAC & Smart & Connected Thermostat Demand by Value, 2004 - 2017 (million dollars)
Figure 3-3 | Smart & Connected Thermostat Demand by Volume, 2011 - 2025 (thousand units)
Figure 3-4 | Smart & Connected Thermostat Volume Demand Share by Type, 2012 - 2025
Figure 3-5 | Carrier Smart & Connected Thermostats
Figure 3-6 | ecobee Smart Thermostats
Figure 3-7 | Honeywell Smart Thermostats
Figure 3-8 | LUX Products Smart Thermostats
Figure 3-9 | Nest Labs Smart Thermostats
Figure 3-10 | Schneider Electric's Wiser Air Smart Thermostat
Figure 5-1 | Continental US Climate Zones
Figure 5-2 | Annual Growth in Real GDP, 2000 - 2017, Compared to 1980 - 2005 Average (percent)
Figure 5-3 | Annual Population Growth, 2002 - 2017 (percent)
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