Utilities Subsidize Google and Amazon to Enter the Home

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  • U.S. smart thermostat market expected to peak in 2021.
  • Alphabet Inc. and Amazon Inc. are backing leading brands.

BNEF smart thermostat sales estimate

Source: Bloomberg New Energy Finance. Note: Europe refers to the EU-28 plus Switzerland and Norway.

The U.S. is leading the market for smart thermostats, with Europe following close behind. In 2016, one and a half million smart thermostats were sold in Europe while more than three million were sold in the U.S.. Bloomberg New Energy Finance estimates that the U.S. market will peak in 2021 with sales of 13.5 million. This growth is supported by U.S. utilities across the country offering rebates to customers that install a smart thermostat. At present over 23 million U.S. customers live in a territory where their utility offers a smart thermostat incentive. Growth in the U.S. is expected to benefit market leaders such as Nest Labs Inc., owned by Alphabet, and Ecobee Inc., backed by Amazon.

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