Market Heats Up For Smart Thermostats

Smart thermostats are soaring in popularity across the world. The number of homes using smart thermostats more than doubled in 2014, rising 105% to reach 3.2 million according to research firm Berg Insight.

In Europe there are 0.7 million homes with a smart thermostat, a rise of 96% year-on-year. However the biggest market is North America, with an installed base of 2.5 million smart thermostats – a 107% rise.

The growth of smart thermostats is expected to continue growing. The number of homes with the systems installed within Europe and North America will grow at a compound annual growth rate (CAGR) of 64.2% during the next five years, reaching 38.2 million in 2019 says Berg Insight.

Smart thermostats are particularly interesting within the HVAC industry as well as for consumers and the energy sector. The devices open up new opportunities for HVAC service providers, as they impart intelligence to residential heating and cooling systems. In addition, predictive maintenance and remote diagnostics can allow repair and maintenance activities to be streamlined and conducted more efficiently.

Meanwhile, consumers benefit from increased potential for energy savings, as well as comfort and convenience. And for energy companies, smart thermostats open up new possibilities to introduce consumer-friendly demand response and energy efficiency programmes.

The leading smart thermostat brand in Europe is the eQ-3, whose smartphone-controlled radiator thermostats have been installed in more than 0.3 million homes. Other big names in the European market include Climate, Danfoss, Heatapp, Heat Genius, Honeywell, Ngenic, Nest, RWE and Tado.