Despite cost savings and positive impact from increased energy efficiency, global adoption of advanced thermostats varies
BOULDER, Colo., June 23, 2022 /PRNewswire/ -- The introduction of advanced thermostats over the past decade has been changing the business model for residential HVAC. A new report from Guidehouse Insights analyzes the global market and regional trends of advanced thermostats.
In an effort to improve the energy efficiency (EE) of homes, stakeholders will increasingly encourage the adoption of advanced thermostats. According to a new report from Guidehouse Insights, the global market for advanced thermostats is expected to grow at a compound annual growth rate (CAGR) of 8.4% from $3.4 billion in 2022 to $6.9 billion by 2031. While most of the growth will be in the Asia Pacific market and is associated with the substantial growth in China for multifamily homes, the North American Market will grow at a CAGR of 1.7% from $1.6 billion in 2022 to 1.9 billion in 2031. Unit sales in North America are increasing, but prices are coming down quickly.
"Thermostats have traditionally been about comfort, convenience, and then energy savings. The capabilities of advanced thermostats have flipped the priorities to managing power usage, convenience, and comfort," says William Hughes, principal research analyst with Guidehouse Insights. "In the coming years, they will shift from being a device the homeowner specifies to an instrument by which utility and homeowners collaboratively manage peak power loads."
This evolution will not take place uniformly because the current adoption of thermostats varies significantly by region, according to the report. Besides climate-based variations in heating and cooling needs and technology, individual cultures have ingrained customs and mores on the nature of heating—and sometimes cooling—that should be recognized and respected. Relationships between utilities and homeowners also affect collaboration.
The report, Market Data: Smart Thermostats, looks at the growth of advanced thermostats in all regions in the coming decade. It leverages Guidehouse Insights reports based on the Global Building Stock Database for 4Q21 and applies information associated with advanced thermostats, consumer buying behavior, and information from vendors. An executive summary of the report is available for free download on the Guidehouse Insights website.
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 13,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Smart Thermostats, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
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