International. The introduction of advanced thermostats over the past decade has changed the residential HVAC business model. A new report from Guidehouse Insights analyzes the global market and regional trends for advanced thermostats.
In an effort to improve the energy efficiency (EE) of homes, stakeholders will increasingly encourage the adoption of advanced thermostats. According to the analysis, the global advanced thermostat market is expected to increase at a compound annual growth rate (CAGR) of 8.4%, from $3.4 billion in 2022 to $6.9 billion in 2031.
While most of the growth will occur in the Asia Pacific market and is associated with China's substantial growth in multifamily housing, the North American market will grow at a CAGR of 1.7%, rising from $1.6 billion in 2022 to $1.9 billion in 2031. Unit sales in North America are rising, but prices are dropping rapidly.
"Traditionally, thermostats have been all about comfort, convenience, and then energy saving. The capabilities of advanced thermostats have shifted priorities for managing energy use, convenience and comfort," says William Hughes, principal research analyst at Guidehouse Insights. "In the coming years, they will cease to be a device specified by the homeowner and become an instrument by which the utility and homeowners will collaboratively manage maximum energy loads."
The traditional function of thermostats has been to provide comfort and convenience by automating temperature management. Recent improvements built into advanced thermostats support additional sensors, artificial intelligence, and communication capabilities. As energy prices rise and society moves toward reducing energy use for environmental reasons, priorities shift toward managing energy use, convenience and convenience. Advanced thermostats excel at all three.
Their efficiency and capabilities are such that in the coming years, they will cease to be a device specified by the homeowner and become an instrument by which the utility and homeowners collaboratively manage maximum energy loads.
This evolution will not be carried out uniformly because the current adoption of thermostats varies significantly by region. In addition to climate-based variations in heating and cooling needs, individual cultures have ingrained customs and customs about the nature of heating, and sometimes cooling, that must be recognized and respected. Relationships between utilities and landlords also affect collaboration.
