Report: number of homes with smart thermostats doubled in 2014

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The number of North American and European homes with a smart thermostat grew by 105% to 3.2 million in 2014, according to a new research report from Berg Insight.

The North American market recorded a 107% growth in the installed base of smart thermostats to 2.5 million. In Europe, the total number of homes with a smart thermostat grew by 96% year-on-year to reach 700,000. Berg Insight, headquartered in Sweden, forecasts that the number of homes with smart thermostats in North America and Europe will grow at a compound annual growth rate (CAGR) of 64.2% during the next five years to reach 38.2 million in 2019. North America will remain the largest market at the end of the forecast period with 24.6 million homes that have smart thermostats, whereas the installed base in Europe is expected to reach 13.6 million homes.

Smart thermostats is a particularly attractive opportunity in the smart home market, as these systems are of great interest for consumers, energy companies and HVAC service providers. Consumers embrace smart thermostats primarily due to the potential for energy savings, increased comfort and convenience. For energy companies, smart thermostats open up new possibilities to introduce consumer-friendly demand response and energy efficiency programs. These programs can enable significant capital savings as lower peak load can reduce expenditures on reserve power generation and the need to purchase energy on the spot market.

Adding intelligence to residential heating and cooling systems furthermore opens up new opportunities for HVAC service providers. Predictive maintenance and remote diagnostics can allow repair and maintenance activities to be streamlined and conducted more efficiently.

The North American smart thermostat market is led by Nest, Honeywell and Ecobee that each has sold hundreds of thousands of thermostats, primarily through the retail, utility and professional installer channels, according to the report. These companies are joined by vendors such as Radio Thermostat Company of America and RCS that have gained traction especially in the whole-home system channel through partners such as ADT, Vivint and Alarm.com. Other contenders in the North American market include Emerson, Lennox, Quirky, Trane and Venstar, according to the report.

(Berg Insight)

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