As consumers embrace new technology, some markets run out of steam while others continue to expand. Demand for smart thermostats shows no signs of slowing down.
According to a recent report by Navigant Research, worldwide markets for high tech thermostats will more than double in the next 10 years.
Titled, “Residential Smart and Communicating Thermostats for Single-Family and Multifamily Buildings: Global Market Analysis and Forecasts,” the study was released in the fourth quarter of 2018.
It examines the market for this advanced technology by conducting interviews with industry leaders and through secondary research.
The study identifies a number of factors affecting the market. For example, it characterizes Google’s acquisition of Nest Labs in 2014 as a major kickstart. Since then, other companies, such as Amazon and Johnson Controls have also made significant investments in the space.
Consumer trends are also changing as consumers have become more aware of the benefits, and utilities have advanced from pilot programs to full implementation programs. According to Navigant, advanced thermostats have become an integral component in the typical smart home.
The study notes that a number of factors, such as voice activation, the internet of things (IoT), new business opportunities and regulatory requirements, are combining to help drive demand.
There will be some challenges, including lack of interoperability, different regional heating systems, customer indifference, and data privacy and security issues.
Despite these challenges, Navigant projects the global market for smart thermostats to grow from nearly $2.2 billion in 2018 to over $5.4 billion in 2027 for a compound annual growth rate (CAGR) of 10.7 percent.
North America will be the leading market with revenue growing from $1.2 billion in 2018 to almost $1.9 billion in 2027 at a CAGR of 5.1 percent.