According to a report from Mordor Intelligence, the global smart home market was valued at $35.7 billion in 2017, and it is expected to reach a value of $150.6 billion by 2023, growing at a compound annual growth rate of 26.9 percent during the forecast period.
Honing in on the high-end heating market, there have been several changes over the years, but four primary trends stand out among the rest: connectivity, efficiency, aesthetics and health, and upgraded technology.
The expected surge in smart thermostat sales will have equipment manufacturers, many of whom have their own proprietary controls, competing with the well-known universal thermostat brands, such as Nest, Honeywell, and ecobee.
According to a recent study by Parks Associates, 13 percent of U.S. broadband households owned a smart thermostat by the end of 2017. And while that’s still under a quarter of eligible homes, that number has nearly tripled from just three years prior, influenced by factors like the ubiquity of the smartphone and the rise of in-home AI.
Despite the fact that there’s a lot of airtime given to smart thermostats in the media and throughout industry conferences, the reality is that only about 15 percent of households own a smart thermostat, according to Rob Munin, president at Lux Products.
The HVAC industry is no stranger to do-it-yourself (DIY) homeowners, especially with the growing popularity of smart thermostats that just happen to be readily available at their corner big-box store or online via two-day shipping.
The ultra-thin programmable thermostat has a full-color glass touchscreen and features local weather, one-touch away mode, motion activation, and integrated Wi-Fi.
Going forward, the most significant driver of unit sales of smart and connected thermostats will be the rapidly declining prices, which will support multiple-unit consumer adoption. Ramped up efforts by utility companies, homebuilders, and HVAC contractors to promote these products based on their cost- and energy-saving benefits will also underlie growth.
Developments in zoning capabilites have brought mini splits into the multiroom realm. And it goes without mention that the march of engineering progress has taken ductless systems on the road, into parts of the country where no mini split has ever gone before.