BOULDER, Colo. — While thermostats have been around for decades, the latest technology advancements have only just begun to gain traction, notes Navigant Research. Smart and communicating thermostats enable consumers to save money on energy bills, help utilities meet energy efficiency and demand-side management (DSM) requirements, and play a part in connected home solutions. According to a new report from the research firm, annual global revenue for communicating and smart thermostats and associated software and services is expected to grow from $1.1 billion in 2016 to $4.4 billion in 2025.

“In the next decade, smart thermostats are expected to account for almost half of annual thermostat shipments,” said Paige Leuschner, research analyst at Navigant Research. “Uptake of these and communicating thermostats is expected to escalate as software and services increase the value of thermostats through more advanced capabilities, intelligence, and insights, and as more thermostats are incorporated into utility efficiency and demand response programs.”

As the market for smart and communicating thermostats continues to evolve, different distribution channels for these devices are emerging, according to the report. Telecommunications and broadband service providers, home security companies, and HVAC contractors are all finding ways to incorporate advanced thermostats into their solutions.

An executive summary of the report is available here.

Publication date: 6/17/2016

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!