Cleantech Market Intelligence
Honeywell’s Lyric Intensifies Smart Thermostat Competition
The new device looks similar to Nest’s: round, glossy, and with a modern digital interface – though Honeywell would say it hasn’t copied Nest (something the two have argued about in court) – the Lyric updates its iconic Round thermostat, first introduced in 1953.
The new Lyric thermostat is smartphone-centric and will work with iOS or Android devices. It uses a homeowner’s smartphone location as the cue for adjusting the temperature set point. For example, when a homeowner leaves the house with smartphone in hand, the Lyric device can automatically enter an energy-saving mode. Similarly, as the homeowner and smartphone return, the Lyric thermostat senses the proximity and can either heat or cool the house to the preferred temperature. This technology is called geofencing – using a device’s location to trigger events.
Under the hood, the Lyric thermostat software makes automatic adjustments using an algorithm based on indoor temperature, local outdoor weather conditions, and humidity. This functionality, dubbed Fine Tune, endeavors to provide the most comfortable temperatures in an automated fashion. In a dig at Nest, which emphasizes its learning capabilities, Honeywell notes the Lyric thermostat does not have to learn any patterns; it merely adjusts to homeowner activity.
Honeywell has provided energy-savings guidelines for Lyric owners in the United States. Estimated annual savings by region are: $26 to $150 in the West; $133 to $173 in the Midwest; $31 to $143 in the South, and $130 to $221 in the Northeast.
The retail price for Lyric is $279, meaning it will compete at the high end of the market, like Nest. The Lyric thermostat is available now through Honeywell’s network of heating and cooling contractors, and is expected to be in retail stores starting in August. The new thermostat is the first in a family of connected home products Honeywell plans to launch under the Lyric name.
With this device, Honeywell has upped its game against Google/Nest. Given its strong brand and equally strong distribution channel, Honeywell should be able to at least dent some of the momentum Nest has generated in the past few years since its launch. And, more than likely, Google will counter with product upgrades of its own. The competition should be good for consumers, giving them choices for a smart thermostat that meets their needs. Moreover, competition won’t be limited to these two U.S. players. Germany-based startup tado° has been active in Europe with its hardware-software temperature control system. The company recently reached its $200,000 target through a Kickstarter campaign to launch its new air conditioning control product. It also plans to adapt both its heating and cooling products to be compatible with Apple’s forthcoming HomeKit platform.
The smart thermostat arms race is on.