Consumers in North America and Europe bought twice as many smart thermostats in 2014 as in the previous year.
The number of homes with an installed smart thermostat topped 3.2 million in 2014, a rise of 105%, according to data compiled by market research company Berg Insight.
The North American market recorded a 107% growth in the installed base of smart thermostats to 2.5 million.
In Europe, the total number of homes with a smart thermostat grew by 96% year-on-year to reach 0.7 million.
North America smart thermostat market
North America is believed to offer the largest market opportunity for smart appliances growing to 24.6 million homes by 2019.
This market is led by Nest, Honeywell and Ecobee that each has sold hundreds of thousands of thermostats, primarily through the retail, utility and professional installer channels.
These companies are joined by vendors such as Radio Thermostat Company of America and RCS that have gained traction especially in the whole-home system channel through partners such as ADT, Vivint and Alarm.com.
Other contenders on the North American market include Emerson, Lennox, Quirky, Trane and Venstar.
Europe's smart thermostat market
In Europe, the leading smart thermostat vendor is eQ-3, whose smartphone-controlled radiator thermostats have been installed in more than 0.3 million homes, according to the Berg Insight report.
Other successful initiatives include the smart thermostat solutions offered by the energy companies British Gas in the UK and Eneco in the Netherlands.
British Gas’ Hive solution had approximately 0.14 million users at the end of 2014, whereas Eneco had signed up around 0.1 million users for the Toon solution.
Other participants in the European smart thermostat market include Climote, Danfoss, Heatapp, Heat Genius, Honeywell, Ngenic, Nest, RWE and Tado.
Energy companies are also seeing the value of offering free or discounted smart thermostats to customers in exchange for participation in demand response and energy efficiency programmes.