Smart Thermostats

Communicating Thermostats, Smart Thermostats, and
Associated Software and Services: Global Market Analysis and Forecasts

Thermostats have been around for decades, but the latest technology advancements have only just begun to gain traction. Over the past several years, the communicating and smart thermostat market has witnessed increased excitement and attention. These thermostats enable consumers to save money on energy bills, help utilities meet energy efficiency and demand-side management (DSM) requirements, and play a part in connected home solutions.

Today, different distribution channels are emerging for these devices. Telecommunications and broadband service providers, home security companies, and heating, ventilating, and air conditioning (HVAC) installers are racing to incorporate advanced thermostats into their solutions. Software and services—especially those that are cloud-based—have become a vital part of these more intelligent thermostats, providing data-based insights and opportunities that increase the value of these devices. While predominately based within North America, the market for communicating and smart thermostats has begun expanding to Europe. Favorable conditions for these thermostats in terms of housing growth, climate, and policy also exist in Asia Pacific. According to Navigant Research, global revenue for communicating and smart thermostats and associated software and services is expected to grow from $1.1 billion in 2016 to $4.4 billion in 2025.

This Navigant Research report analyzes the global market opportunities for communicating and smart thermostats. The study provides an analysis of the market issues, including the current market drivers, barriers, and business segments, utility and vendor activity, and broad industry trends, associated with communicating and smart thermostats. Global market forecasts for unit shipments, average selling prices, and revenue, including revenue for related software and services, extend through 2025. The report also examines the key technologies related to communicating and smart thermostats and profiles the major industry players.

Key Questions Addressed:
  • What is a smart thermostat?
  • How is a smart thermostat different from a communicating thermostat?
  • How will the communicating and smart thermostat market grow over the next decade?
  • How will revenue and shipment growth for communicating and smart thermostats vary by region?
  • How will growth for communicating and smart thermostats vary by technology?
  • What are the key drivers and barriers for the communicating and smart thermostat market?
  • Who are the key players in this market?
Who needs this report?
  • Utilities and energy retailers
  • Thermostat manufacturers
  • Broadband service providers
  • Telecommunications providers
  • Home security providers
  • Connected home and home automation providers
  • Regulators
  • Investor community

Table of Contents

1. Executive Summary

1.1  Introduction

1.2  Market Drivers

1.3  Market Barriers

1.4  Market Forecasts

2. Market Issues

2.1  Market Overview

2.1.1     Thermostat Definitions

2.1.2     Software, Data, and Analytics

2.2  Distribution Channels

2.2.1     Retail

2.2.2     Professional Installers and Contractors

2.2.3     Utility Programs

2.2.4     Home Security

2.2.5     Telecommunications and Broadband Service Providers

2.3  Market Drivers

2.3.1     Increasing Awareness of Energy Management

2.3.2     Proliferation of Connected Home Devices

2.3.3     Broadening Distribution Channels

2.3.4     Integration in Utility Programs

2.3.5     Added Value in Cloud Computing and Analytics

2.3.6     Energy Efficiency Policies and Directives

2.4  Market Barriers

2.4.1     Cost

2.4.2     Awareness Still Lacking

2.4.3     Unclear Savings and Thermostat Differentiation

2.4.4     Utility Hesitancy and Slow Regulatory Processes

2.4.5     Developing Technologies

2.4.6     Privacy and Security Concerns

2.4.7     Interoperability Issues

2.5  Regional Trends

2.5.1     North America

2.5.2     Europe

2.5.3     Asia Pacific

2.5.4     Latin America

2.5.5     Middle East & Africa

2.6  Broad Industry Trends

2.6.1     Moving to the Cloud

2.6.2     Developer APIs: Integrating the Whole Home

2.6.3     DR and BYOT

2.6.4     Customer Engagement

3. Technology Issues

3.1  Communicating and Smart Thermostat Overview

3.2  Thermostat Components

3.2.1     Network Interface

3.2.2     Processing and Memory

3.3  Heating and Cooling Applications

3.3.1     Central HVAC

3.3.2     Ductless Mini-Split HVAC

3.3.3     Transportable Systems

3.3.4     Electric and Natural Gas Boilers

3.3.5     Heat Pumps and Auxiliary Heat

3.4  Open Standards, Internet Protocol, and Wireless Communications

3.4.1     Internet Protocol

3.4.2     Wireless Technologies

3.4.2.1  ZigBee

3.4.2.1.1.     Technology

3.4.2.1.2.     SEP

3.4.2.2  Wi-Fi

3.4.2.2.1.     Technology

3.4.2.3  Z-Wave

3.5  Software Applications

3.5.1     Analytics

3.5.2     Automation

4. Key Industry Players

4.1  Thermostat Vendors

4.1.1     Carrier

4.1.2     Climote

4.1.3     Computime/SALUS

4.1.4     ecobee

4.1.5     Emerson Climate Technologies/White Rogers

4.1.6     GridPoint

4.1.7     Honeywell

4.1.8     LUX

4.1.9     Nest Labs

4.1.10   Quby

4.1.11   Radio Thermostat Company of America

4.1.12   Schneider Electric

4.1.13   tado

4.1.14   ThinkEco Inc.

4.1.15   Trane

4.2  Apps, Analytics, and Platform Providers

4.2.1     Comverge

4.2.2     Earth Networks/Weatherbug

4.2.3     EcoFactor

4.2.4     Energate

4.2.5     EnergyHub

4.2.6     Landis+Gyr

4.2.7     Opower

4.2.8     Silver Spring Networks

4.2.9     Tendril

4.3  Home Automation and Security Vendors

4.3.1     ADT

4.3.2     Alarm.com

4.3.3     AT&T

4.3.4     Comcast

4.3.5     Icontrol Networks

4.3.6     TWC

4.3.7     Verizon Wireless

4.3.8     Vivint

4.4  Utilities and Energy Retailers

4.4.1     Austin Energy

4.4.2     British Gas/Hive

4.4.3     ComEd

4.4.4     Con Edison

4.4.5     NV Energy

4.4.6     OG&E

4.4.7     PG&E

4.4.8     SCE

4.4.9     SMUD

4.4.10   Swisscom

4.4.11   Xcel Energy

5. Market Forecasts

5.1  Overview

5.2  Forecasting Methodology

5.3  Global Market

5.3.1     North America

5.3.2     Europe

5.3.3     Asia Pacific

5.3.4     Latin America

5.3.5     Middle East & Africa

5.4  Conclusions and Recommendations

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Communicating and Smart Thermostat Device and Software and Services Revenue by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, World Markets: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, North America: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Europe: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Asia Pacific: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Latin America: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Middle East & Africa: 2016-2025
  • Annual Thermostat Shipments by Region, World Markets: 2016-2025
  • Communicating Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Communicating Thermostat Revenue by Region, World Markets: 2016-2025
  • Smart Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Smart Thermostat Revenue by Region, World Markets: 2016-2025
  • Smart Thermostat Associated IT Revenue by Region, World Markets: 2016-2025
  • Customer Engagement Channels
  • XFINITY Home Control Panel
  • Devices for the Connected Home
  • Summary of Tested Thermostats in SMUD’s Thermostat Usability Survey
  • New York REV Program
  • Samsung Smart Home with Cloud Computing
  • Utility/Vendor BYOT Partnerships
  • EnergyHub’s Firm Load Dispatch DR Solution
  • Ductless Mini-Split HVAC Diagram
  • IP Stack Overview
  • Z-Wave Home Control
  • Mapping Data Sources for Data Integration

List of Tables

  • Thermostat Technology Classification Comparison
  • Annual Thermostat Shipments by Region, World Markets: 2016-2025
  • All Thermostats Residential Installed Base by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Residential Installed Base by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Device and Software and Services Revenue by Region, World Markets: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, World Markets: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, North America: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Europe: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Asia Pacific: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Latin America: 2016-2025
  • Communicating and Smart Thermostat Revenue by Segment, Middle East & Africa: 2016-2025
  • Communicating Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Average Selling Price of Communicating Thermostats by Region, World Markets: 2016-2025
  • Communicating Thermostat Revenue by Region, World Markets: 2016-2025
  • Smart Thermostat Device Shipments by Region, World Markets: 2016-2025
  • Average Selling Price of Smart Thermostats by Region, World Markets: 2016-2025
  • Smart Thermostat Revenue by Region, World Markets: 2016-2025
  • Smart Thermostat Associated IT Revenue by Region, World Markets: 2016-2025
  • Smart Thermostat Associated IT Revenue by Category, North America: 2016-2025
  • Smart Thermostat Associated IT Revenue by Category, Europe: 2016-2025
  • Smart Thermostat Associated IT Revenue by Category, Asia Pacific: 2016-2025
  • Smart Thermostat Associated IT Revenue by Category, Latin America: 2016-2025
  • Smart Thermostat Associated IT Revenue by Category, Middle East & Africa: 2016-2025
  • Communicating/Smart Thermostat Features

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