Huge WiFi Growth in the Smart Thermostat Market Expected
Sales of smart thermostats are set to reach $600 million around the world by 2018 according to the latest research by a London based company.
ABI Research have reached this conclusion by projecting that the total number of units shipped will grow from 1.3 million this year, to 8 million world-wide in 2018 - this equates to a staggering compound annual growth rate of 43%.
They attribute much of the reason for this to companies like Nest and ecobee - both of which are in the list of top 10 smart thermostat brands - stating that they have "significantly raised the bar for product design and innovation in a device category that had seen little change over several decades", I find myself completely in agreement with that sentiment.
Most smart thermostats are currently sold in the United States, however as the latest technology gains higher rates of adoption in Europe due to smart mobile devices packed with low-cost wireless sensors, home automation initiatives from Telco’s and Cable companies, an expanding base of buildings connected with smart meters, and a slowly recovering housing market, Europe is set to become the largest market by 2017 according to ABI Research.
“The prolonged economic recession in Europe, EU directives on household energy efficiency and regional utility provider conservation programs are changing European consumer views on energy usage. Smart thermostats are serving a growing and increasingly thrifty base of energy conscious customers in this region,” comments senior ABI analyst, Adarsh Krishnan.
WiFi controls the lion’s share of the market at present and will continue to be the popular choice among device manufacturers—shipments are forecast to exceed 3 million units in 2018. The ubiquity of WiFi as a residential HAN technology and its penetration in smartphones make it an ideal choice for consumers and device manufacturers. ZigBee enabled smart thermostats will witness growing market share with over 2 million units shipped annually in 2018.
These findings are part of ABI Research’s Smart Home Research Service which examines the market for monitoring and control technologies employed in home automation applications, including energy management, security management, healthcare, entertainment, connected appliances, and lighting control.
ABI says that by the end of 2018 WiFi thermostats will make up 40% of the total smart thermostats sold.
I hope it happens even quicker than that because we really need every energy saving device used in homes as quickly as possible in order to reduce the dangers of global climate change.
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