The market for connected thermostat communications and associated software and services will grow from $1.1 billion in 2016 to $4.4 billion in 2025, according to a smart thermostat forecast from Navigant Research.
Smart thermostats will come to account for half of annual thermostat shipments worldwide over the course of the next decade, Navigant research analyst Paige Leuschner said in a press release about the smart thermostat forecast.
Smart Thermostat Forecast
Connected energy control and management products and services are a leading driver of growth in the Smart Home market. High-profile smart home energy startups such as Nest have garnered billions of dollars upon being acquired by high-tech industry giants – for $3.2 billion by Google in February 2014, in Nest’s case.
Smart thermostats serve as centerpieces for telecom and broadband services providers, as well as utilities, Internet tech leaders and others that provide home energy and automation products and services. Utilities, for example, are experimenting with demand-response management systems (DRMS) in order to enhance the efficiency, reliability and resiliency of power grids and reduce greenhouse gas emissions.
“Uptake of these [smart] 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.”
On World in February forecast smart home products and services revenue will reach $27.5 billion by 2020. The ability of telecom, cable/MSO and IP security companies to market and sell individual and bundled smart home products and services via multiple retail channels will fuel and play a large role in determining market growth, ON World highlighted.