Smart thermostats to realize $1.4 billion in revenue by 2020

Sponsored by

Worldwide revenue from smart thermostats will grow from $86 million in 2013 to almost $1.4 billion in 2020, according to a recent report from Navigant Research.

Smart thermostats, also known as programmable communicating thermostats (PCTs), offer integrated features that surpass the basic sensing and control functions of traditional thermostats.

Although the market for smart thermostats has struggled to gain traction, recent developments — particularly the purchase of smart thermostat maker Nest Labs by Google, for a reported $3.2 billion — indicate that growth is likely to accelerate.

“Large retailers, including Lowe’s and The Home Depot in the United States and B&Q in Europe, have begun selling smart thermostats, signaling that sales of these devices could grow in coming years,” says Bob Lockhart, research director with Navigant Research. “It remains to be seen, though, whether marketing efforts on behalf of these retailers will raise the interest of a large pool of customers who are not already planning to replace an existing thermostat.”

For their part, utilities remain cautious about investing in programs and tools that provide incentives for consumers to regulate their energy use. Likewise, vendors have struggled to produce user-friendly solutions with proof of substantial cost savings that will motivate customers outside of the energy-conscious segment.

However, the combined factors of increased energy awareness, rising interest in home automation and security tools, and more user-friendly solutions have led to an uptick in shipments for smart thermostats and have revived a sense of optimism and excitement on behalf of vendors and stakeholders.

Sponsored by

CURRENT ARTICLES

Appalachian Power requests energy efficiency programs for Virginia

10/24/2014

Appalachian expects the six programs to save about 43,000 MWh in energy usage

Electric distribution investment up from past decades

10/24/2014 Electricity distribution systems differ from transmission systems, which have also experienced increased investment over t...

Toledo Edison builds transmission line to serve Home Depot warehouse

10/24/2014

The new 1.65-million square foot facility will be used primarily for online order fulfillment 

Rwanda to switch on peat-fired power plant

10/24/2014

The $36 million project will produce cheaper electricity compared to hydro or thermal power 

Has privatization failed Texas utility customers?

10/24/2014 Relative electricity prices have increased dramatically, and dangerously lower electrical system reliability is the result...

ETT proposes Del Sol to JackieHoward transmission line in South Texas

10/23/2014 Electric Transmission Texas is planning to construct a new $24.5 million, 345-kV transmission line to connect the 200 MW L...

Gamesa delivers 74 MW wind farm to Grupo Mexico

10/23/2014 Gamesa currently has 1 GW of installed wind capacity in Mexico, with another 70 MW in the pipeline at the Dos Arbolitos pr...

ON DEMAND WEBCASTS

Architecting Communication Networks for Smart Grids

This webinar will provide the essentials of communication networking to meet the challenges of th...

The Power of Behavioral Design: Lessons for Energy Efficiency Providers

Behavioral design principles are key differentiators when it comes to influencing consumer behavi...

3D BIM for Substations—Driving Efficiency from Design Through Operation and Maintenance

In this webinar, PESTECH will describe their transition to intelligent substation design and its ...

High Availability Networks. Application of IEC6439-3 Protocols for IEC61850 Process Bus implementation

Networks can now be built for the first time with genuinely uninterrupted data communication betw...

Understanding Moisture Dynamics in Power Transformers

While the need to measure moisture in power transformers has been well documented and is universa...

EL&P BUYER'S GUIDE PRODUCTS

MITEM Corp

Provides CRM solutions for regulated U.S. public utilities. The product, MitemView integrates differently designed systems to share critical data a...

Resources on Demand

Manages resource requests, tracks personnel movements, and supports lodging/logistics during a power restoration event.

Smart Grids

Quanta is contributing to its customers' smart grid initiatives by installing technology on power networks to provide energy management solutions f...

Horizontal Directional Drilling

With 28 small, mid-sized and large drilling rigs, Quanta Pipeline Services is one of the largest horizontal directional contractors in the world fo...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

April 2014
Volume 19, Issue 4
1404pg-cover

ELECTRIC LIGHT & POWER

January 2014
cover