Smart Thermostat Market

The global smart thermostat market size was valued at $1.86 billion in 2019, and is projected to reach $11.36 billion by 2027, registering a CAGR of 28.00% from 2020 to 2027. Smart thermostats are devices designed to automatically control ambience temperature and air conditioning. These smart devices provide users the benefit to control temperature throughout the day using a schedule. In addition, smart thermostat is integrated with sensors and smart-net technology such as Wi-Fi, which provides remote access to internet connected devices. Smart thermostat is used in smart infrastructure to control smart appliances such as window ACs, split ACs, portables ACs, heaters, radiators, and boilers. 

Smart thermostat is popular for use in autonomous infrastructure. These devices can be programmed or scheduled as per user preferences, especially with set daily routines. Moreover, smart thermostats have self-learning capacity that adjusts temperature as per data captured in the past. These devices can be easily installed by consumers and are compatible with a wide range of smart electronic appliances.

The smart thermostat industry is expected to witness growth during the forecast period, owing to rapid development of smart infrastructure in residential and commercial sectors. The market for global smart thermostat is expected to be driven by surge in adoption of IoT and AI-based technologies thereby advancing programmable thermostats to smart ones. Moreover, increase in use of smart technology in medical monitoring is expected to boost demand for smart thermostats. Considering these factors, the global smart thermostat market is estimated to experience a steep growth in the future.

Rise in industrialization and substantial increase in population are some of the other drivers for the global smart thermostat market growth. However, high costs of smart thermostats in developing countries acts as a major challenge for the market growth. Furthermore, advancements in temperature regulation of appliances and adoption of automated systems provide lucrative opportunities for the global smart thermostat market. 

Emergence of COVID-19 has declined growth rate of the market in 2020, and the market is estimated to witness relatively slow growth till the end of 2021. The market was primarily hit by several obstacles created amid the COVID-19 pandemic in the construction industry including availability of resources, health and safety measures, deliverables, contractual obligations, and project delays or cancellations. Consequently, it resulted in decreased demand for global smart thermostat industry. 

The smart thermostat market is analyzed by technology, application, and end user. On the basis of technology, it is fragmented into Wi-Fi, Bluetooth, Zigbee, and others. The Wi-Fi segment dominated the market, in terms of revenue in 2019, and is expected to follow the same trend during the forecast period. On the basis of application, the market is segregated into air conditioning, heating, and ventilation. By air conditioning, the market is further divided into split AC, window AC, and portable AC. The heating segment dominated the market, in terms of revenue in 2019, however, the air conditioning segment is projected to witness significant market share during the forecast period. By end user, the market is divided into residential, commercial, industrial, and others. The global smart thermostat market share of commercial segment accounted highest in 2019, and the residential segment is expected to grow at a high CAGR from 2020 to 2027.

By region, the smart thermostat market share is divided into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the market, in terms of revenue in 2019, and is expected to follow the same trend during the forecast period. Adoption of smart phones and smart electronic appliances in residential, commercial, and industrial sectors is expected to propel the smart thermostat industry in this region. Owing to technological advancements, appliances in residential buildings, such as washing machines, heating, and cooling equipment, and refrigerators are increasingly becoming smart. This means that they can be connected to the internet. Hence, all such factors are anticipated to boost the market growth.

Top Impacting Factors

Significant factors that impact growth of the global smart thermostat industry include rapid adoption of smart infrastructure in residential & commercial sectors, surge in penetration of IoT and AI-based technologies, and increase in use of smart technology in medical monitoring. However, high cost of products in developing countries acts as a major barrier for early adoption, which hampers growth of the market. On the contrary, adoption of automated systems for temperature control in residential, commercial, and industrial sectors is anticipated to provide lucrative opportunities for smart thermostat market during the forecast period.

Competition Analysis

Competitive analysis and profiles of the major global smart thermostat market players such as Emerson Electric Co., Ecobee, Inc., Honeywell International Inc., Johnson Controls, Nest Labs, Inc., Control4 Corporation, Schnieder Electric SE, Tado GmbH, Nortek, Inc., and Ingersoll Rand plc are provided in this report. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their position in the smart thermostat market.

Key Benefits For Stakeholders

• This study comprises analytical depiction of the global smart thermostat market size along with the current trends and future estimations to depict the imminent investment pockets.
• The overall global smart thermostat market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current global smart thermostat market forecast is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the global smart thermostat market.
• The report includes the global market share of key vendors and global smart thermostat market trends.

 Smart Thermostat Market Report Highlights