Falling Prices for Smart Thermostats to Drive Multiple-Unit Adoption, Says Report

Falling prices will drive an increase in U.S. demand for smart and connected thermostats, projected to grow 23 percent per year through 2022 to 14.5 million units, reported Freedonia Group Wednesday. “Rapidly declining prices” will support multiple unit adoption, along with accelerated efforts by utilities, homebuilders and HVAC contractors to promote smart thermostats for cost and energy savings, it said. Utilities may offer rebates and other financial incentives to customers who install approved smart or connected thermostats and enroll in a demand response program, offsetting or reducing consumer cost for the devices, it said. Partnerships with smart thermostat manufacturers are increasingly common among HVAC contractors and homebuilders, it said.