Tuesday, March 20, 2018

More than 50% of U.S. broadband households would be willing to pay $5 per month for a smart thermostat service

Smart energy research shows consumer interest in options and price points for hardware-as-a-service sales models for smart thermostat, smart home kits, HVAC systems, and solar panels

New energy research from Parks Associates shows more than 50% of U.S. broadband households would be willing to pay $5 per month for a smart thermostat service that includes setup, installation, and repair/upgrades. The firm tested multiple hardware-as-a-service scenarios in 360 View: Energy Management, Smart Home, & Energy Providers and found that while consumers are generally averse to monthly fees, they are willing to pay for services with clear value that include tasks they cannot or do not want to perform on their own.

“Many in the smart home industry want to shift business models from a product to a service business model,” said Tom Kerber, Director, IoT Strategy, Parks Associates.“For this approach to succeed, companies need to frame their services correctly. Households with a smart thermostat paid on average $177 for the device, so a service model at the right monthly price would be very attractive to consumers. They value features such as repairs, preventive maintenance, and tech support when considering these services.”

Parks Associates reports more than 50% of U.S. broadband households are interested in hardware-as-a-service options for smart home kits, HVAC systems, and solar panels, when presented with a lower price point. Energy and service providers can use the energy data from these services to build additional value-added services, including real-time energy management services.

“Sixty-four percent of U.S. broadband households value the ability to check their home’s energy usage in real time,” Kerber said. “Identifying when an appliance is operating less efficiently is also a big opportunity. Many U.S. consumers desire new solutions for these energy services, and hardware-as-a-service models create many bundling options built on energy data in the home.”

360 View: Energy Management, Smart Home, & Energy Providers quantifies the thermostat and lighting markets, identifies major channels for each product, and profiles owners and those likely to purchase. It also examines consumer preferences for bundling energy products, services, and recurring revenue models.

Additional insights include:

  • 56% of U.S. broadband households believe it is very important to have an energy-efficient home, but only 9% think their home is very energy efficient.
  • 13% of U.S. broadband households own a smart thermostat, and approximately 60% were self-installed.
  • More than 15% of U.S. broadband households own a back-up power generator.

For more information about Parks Associates’ research, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific data, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, and Connected Health Summit: Engaging Consumers.

http://www.parksassociates.com

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