Parks Associates: Incentives, Discounts, and Interest in Energy Conservation are Triggering Smart Thermostat Purchases
New research highlights 61% of smart thermostat owners acquired their device less than two years ago
New research from Parks Associates finds 23% of US broadband households who recently bought a smart thermostat report that an incentive, discount, or rebate from their energy provider triggered that purchase. The firm’s Smart Product Market Assessment: Smart Thermostats, which identifies key market drivers and barriers and assesses market growth via topline market forecasts, reports that 61% of smart thermostat owners acquired their device less than two years ago.
“Most consumers are somewhat motivated to conserve energy to keep utility bills low,” said Patrice Samuels, Senior Analyst, Parks Associates. “Eighty-four percent of households take some mindful action to reduce energy consumption, including 45% of households who adjust the thermostat to save energy. Smart thermostats’ ability to automate these energy-saving actions drives product appeal. The majority of consumers who do not own a smart product and do not plan to purchase one state that saving money on energy bills, incentives to lower the cost of insurance premiums, or rebates on smart products would positively influence their likelihood to buy.”
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The Smart Thermostat Market Assessment finds that thermostat design and user experience are other motivators for the purchase of smart thermostats. Twenty-two percent of smart thermostat owners felt that the “cooler design” of the smart thermostat was a purchase driver over a traditional thermostat. As prices continue to fall, smart thermostats that include advanced features and designs will be cost-competitive with traditional thermostats, further lowering barriers to adoption.
“Many consumers have growing concerns about the effects of amplified electricity consumption, and recent disasters such as the power outages in Texas highlight the potential consequences,” Samuels said. “As consumers seek better resources to help manage energy consumption, utility online marketplaces are emerging that offer rebates for energy efficiency and demand response solutions. Utility and energy retailer rebates for demand response and energy efficiency solutions lower the entry cost and increase the return on investment.”
Parks Associates’ Smart Product Market Assessments provide a comprehensive and deep analysis of a single smart product market. This analysis includes consumer data for each product, including trending data across years and deep-dive questions on product usage, pain points, and preferences.