Search Button
Resideo offers smart home products like Honeywell Home and Buoy

Resideo Segment and Market Overview

Resideo’s end markets are sizable, attractive and growing quickly, and the company is positioned to accelerate growth even further


As a stand-alone company, Resideo has set the foundation for its long-term strategy, allowing the company to drive significant value creation and win new share of the fast-growing residential IoT market, which is estimated to be a nearly $100 billion market by 2023.

The following chart from our 2019 Q2 Investor & Analyst Presentation breaks down Resideo’s segments, the markets it serves and some of the key players in each.

Resideo has two segments: Products and Solutions and ADI Global Distribution. Through its global distribution business, Resideo serves a $20 billion low-voltage electronics and security distribution market. This segment is growing at roughly 3% to 4% annually and ADI consistently performs above market.

The Products and Solutions business can be broken down by product area: Comfort and Security. These product lines were not integrated prior to the spinoff from Honeywell, but are unified under Resideo to connect the consumer and the do-it-for-me professional contractor channel.

The largest segment, Comfort, can be broken down into four sub-segments:

  • The connected thermostats market is growing at 10%+ and Resideo has been performing above market with multiple market-gaining launches in the past year, including the T9 and T10 Pro smart home thermostats.
  • The $2.5 billion market for traditional temperature controls, including non-connected thermostats, hydronic heating controls, and zoning controls is flat. Resideo is a clear leader in this space and performing just above market.
  • Indoor air quality (IAQ) and potable water is a $3.7 billion market, growing in the mid-single digits. Resideo has a small but growing presence in this space and is performing at market.
  • The fourth is Residential Thermal Solutions (RTS), which includes the “behind the wall” controls for water heaters, boilers and furnaces. Since Q1, we’ve seen a slowdown in the OEM segment, primarily water heaters. Resideo has a strong and leading market position in RTS, and even though that market has slowed, we continue to win in that segment.

Moving down the chart, Resideo’s $800 million Security business serves two markets: Pro Security and DIY Awareness. The company’s primary market is Pro Security, which includes professionally-monitored security systems. In 2018, Resideo performed at market in this $2.9 billion space, and with two solid quarters behind us, we are growing above market and taking share.

Resideo has a small presence in the DIY Awareness market, which includes security cameras and unmonitored systems that are typically sold online or through retail and are generally installed by consumers.

Resideo’s end markets are sizable, attractive and growing quickly. The company is gaining share through a compelling combination of best-in-class products, unparalleled ability to access key distribution channels and a premium name under the Honeywell Home brand. The company is positioned to accelerate growth even further in these segments.

Learn more about our ongoing growth initiatives in our latest earnings presentation.