Smart thermostats prove their worth, leading the way to smarter homes

(EurActiv, 31 Jan 2019) Advanced thermostats have seen a steady uptake and are reaching a higher level of market maturity. They have potential for setting a precedent for smart tech in the future, writes Paige Leuschner.

Paige Leuschner is a research analyst with Navigant Research. Her latest report, Market Data: Advanced Thermostats, looks at the growth trajectory of these devices.

Over the past couple of years, advanced thermostats have seen a steady uptake and are reaching a higher level of market maturity.

Google’s acquisition of Nest Labs for $3.2 billion in 2014 fueled the development of this market. Other high profile companies have since followed suit to carry this momentum forward. Amazon has invested in ecobee and tado, Centrica Connected Home has developed its Hive Active Heating brand with its acquisition of AlertMe, and Johnson Controls has recently released a Microsoft Cortana-embedded residential thermostat in response to market demand in the residential sector. These investments by major brands show how these devices are gaining in acceptance and becoming a staple in smart homes.

Consumers are becoming increasingly aware of the potential energy savings, remote control capabilities, and comfort gains associated with advanced thermostats. More than half of the respondents in a 2016 survey said they were interested in a smart thermostat, a thermostat-based utility program, or a connected home platform in the next 5 years, according to an Accenture study of energy customers.

Simultaneously, utilities in regulated markets are using these devices in demand-side management (DSM) programs to meet demand response (DR) and energy efficiency goals while increasing customer engagement and satisfaction.

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EurActiv, 31 Jan 2019: Smart thermostats prove their worth, leading the way to smarter homes