DALLAS — Smart thermostats are forecast to take a larger portion of the market this year, accounting for over 40 percent of the nearly 10 million thermostats sold in the U.S., according to new smart home research from Parks Associates. The report, Winning Smart Home Strategies for Energy Management, estimates smart thermostats will account for over 50 percent of the total market by 2017.
“Smart thermostats already account for more than one-half of the smart home devices in U.S. broadband households,” said Tom Kerber, director, research, Home Controls & Energy, Parks Associates. “Many utilities have promoted smart thermostats as part of their home energy management initiatives; however, the retail channel accounts for the most units sold last year, nearly 45 percent of the total market, so opening utility programs to include the variety of different types and brands of devices is an important consideration.”
Retailers such as Target, Walmart, and Best Buy are working to increase their offerings in the smart home category, including dedicated space to demonstrate these new products and build consumer awareness. Growth in the retail channel will have a ripple effect in multiple markets. Utilities and other energy service providers are developing strategies to leverage the big data from smart thermostats and other smart home devices for their demand response and energy efficiency programs.
“The cost of heating and cooling a home accounts for as much as 50 percent of the overall utility bill,” said Kerber. “Leveraging data can help consumers reduce energy use and utilities meet energy efficiency and demand response goals. Further, energy providers have the opportunity to monetize the mountain of data derived from both smart meters and smart devices.”
Winning Smart Home Strategies for Energy Management examines the integration of connected products and smart home systems into energy management solutions in addition to new distribution channels. It also analyzes the evolving use and impact of cloud services for demand response programs.
For more information, visit www.parksassociates.com.
Publication date: 7/27/2015