Growth Has Been Cool for Smart Thermostat Adoption, but in this Climate it Could Heat Up

Energy costs are rising, and large-scale blackouts are making headlines around the US. Consumers and energy providers are looking for ways to reduce costs and manage peaks that lead to grid instability and power outages. HVAC remains the largest load in private households, so it remains the logical target for improved management, and smart thermostats are the best tool commonly available today for that management task.

• AEP Ohio and their regional partner PJM Interconnection were the latest energy providers involved in a major blackout due to storm damage on an aging grid. A story local to the Columbus Ohio area quickly reached a national news audience due to the scope of the blackout and recency of other similar events in other parts of the US.
• At the end of 2021, consumers reported an average monthly electricity expenditure of $146, which is up nearly $10 from pre-pandemic rates.
• Amazon launched its Smart Thermostat with minimal features for $50 which provides an extremely low-cost option for consumers who do not see the value in the smarter features included in devices at higher price points.
• ecobee was acquired by Generac and launched a security product, thus demonstrating the opportunity for smart thermostats to be the among the core devices included in a whole-home solution.

Households intending to buy smart thermostats are motivated by cost savings and the convenience of controlling the thermostat remotely. There is opportunity for smart thermostats to be an important part of addressing grid instability and higher energy costs if the players can communicate that value to the consumer.

This is an excerpt from Parks Associates latest Smart Thermostat Market Assessment. Smart Product Market Assessments provide a comprehensive and deep analysis of a single smart product market. Parks Associates analysts identify key markets drivers and barriers and assess market growth via topline market forecasts. This research also includes consumer data for smart thermostats, including trending data across years and deep dive questions on product usage, pain points, and preferences.?

For more information, contact me or visit www.parksassociates.com. Thank you for your support of our research work