Thermo-stats on the rise
Smart and connected thermostat sales are expected to grow significantly.
Look for prices to drop significantly in the high-end thermostat category. According to a report from the Freedonia Group, rapidly declining prices will be the most significant driver of unit sales of smart and connected thermostats.
The group says U.S. demand for smart and connected thermostats is forecast to increase 23% per year through 2022 to 14.5 million units. Ramped up efforts by utility companies, homebuilders, and HVAC contractors to promote these products based on their cost- and energy-saving benefits will also help sales.
The smart and connected thermostat market is expected to transition to become more replacement-oriented between 2022 and 2025, which will correspond with declining sales. By then, most households interested in these products will have purchased one.
The above findings were shared by the Cleveland-based Freedonia Group to help build awareness for its report: the recently published “Smart & Connected Thermostats in the U.S.”
The report also pointed to the leading industry players in the field: Honeywell, ecobee and Nest Labs (Google).
While I believe the report is right about prices dropping on current product what will keep this category active is the fact thermostats will become much more than just HVAC controls. The future will see multi-functions for many areas of the home outside of the traditional air and temperature control. More disruption ahead.....