The global smart thermostats market is expected to grow from 1.3 million units shipped in 2013 to 8 million units in 2018, for a CAGR of 43%, according to ABI Research.
The research firm said disruptive innovation in thermostats from new entrants such as Nest Labs, ecobee, and EcoFator has significantly raised the bar for product design and innovation in a device category that had seen little change over several decades.
Smart thermostat global revenues are expected to see fivefold growth, to $600 million by 2018.
North America is now the most lucrative market for smart thermostats, contributing more than half the worldwide total. The market in North America is driven by:
* a tech-savvy population adopting smart mobile devices with low-cost wireless sensors
* an expanding install base of buildings connected with smart meters
* home automation initiatives from telecommunications and cable companies
* a slowly recovering housing market
Europe is expected to see its smart thermostat shipments exceed those in North American in 2017, to become the biggest market worldwide over the forecast period, the research firm said.
"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," said ABI Senior Analyst Adarsh Krishnan. "Smart thermostats are serving a growing and increasingly thrifty base of energy conscious customers in this region."
Wi-Fi controls most devices currently and is expected to continue to be the popular choice among device manufacturers. Shipments are forecast to exceed 3 million units in 2018.
ZigBee enabled smart thermostats are expected to see growing market share, with over 2 million units shipped annually in 2018.
to Daily News