Smart Thermostat Market Outlook - 2027
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 ambient temperature and air conditioning. These smart devices provide users the benefit of controlling 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. A smart thermostat is used in smart infrastructure to control smart appliances such as window ACs, split ACs, portable ACs, heaters, radiators, and boilers.
A 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 a 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 the rapid development of smart infrastructure in residential and commercial sectors. The market for global smart thermostats is expected to be driven by a surge in the adoption of IoT and AI-based technologies thereby advancing programmable thermostats to smart ones. Moreover, an increase in the 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 steep growth in the future.
The rise in industrialization and substantial increase in population are some of the other drivers for the global smart thermostat market growth. However, the high costs of smart thermostats in developing countries act as a major challenge for market growth. Furthermore, advancements in temperature regulation of appliances and the adoption of automated systems provide lucrative opportunities for the global smart thermostat market.
Segmentation Overview
The smart thermostat market is analyzed by technology, application, and end user.
Based on 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.
By Technology
Wi-Fi segment is projected as one of the most lucrative segments.
Based on 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 a 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 the commercial segment accounted highest in 2019, and the residential segment is expected to grow at a high CAGR from 2020 to 2027.
By Application
Air conditioning segment is expected to secure leading position during forecast period.
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. The adoption of smartphones 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.
By Geography
Asia-Pacific region would exhibit the highest CAGR of 30.4% during 2020-2027
Top Impacting Factors
Significant factors that impact the growth of the global smart thermostat industry include the rapid adoption of smart infrastructure in residential & commercial sectors, the surge in penetration of IoT and AI-based technologies, and the increase in the use of smart technology in medical monitoring. However, the high cost of products in developing countries acts as a major barrier to early adoption, which hampers the growth of the market. On the contrary, the adoption of automated systems for temperature control in residential, commercial, and industrial sectors is anticipated to provide lucrative opportunities for the 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.
Covid 19 Impact Analysis
The emergence of COVID-19 has declined the 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 the global smart thermostat industry.
Key Benefits for Stakeholders
- This study comprises an 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 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
| Aspects | Details |
 By Technology |
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 By Application |
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 By End User |
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 By Region |
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 Key Market Players | Alphabet Inc. (Nest Labs), Zen Thermostat, Tado, Honeywell International Inc., Johnson Controls, Netatmo, Siemens AG, Schneider Electric, Emerson Electric Co., Ecobee |
Analyst Review
Smart thermostat is the latest technology used for autonomous temperature control. It provides users remote access to change temperature via internet, allowing them to use smartphones to turn on or off the heating remotely. Smart thermostat is available with different remote access technologies such as Wi-Fi, Zigbee, and Bluetooth.
Smart thermostat is popular for use in autonomous infrastructure. Smart devices can be programmed, scheduled as per user preferences, especially with set daily routines. Moreover, smart thermostat has self-learning capacity that adjusts temperature as per past data captured. These devices can be easily installed by consumers and are compatible with wide range of smart electronic appliances.
Globally, various key players are investing in smart thermostats to make them compatible with various HVAC products. For instance, smart thermostat by Flair allows compatibility with over 250 brands of split AC. Smart thermostat provides temperature control over iOS, Android or Web App. In addition, Honeywell 7-DAY programmable thermostat provide consumers with Wi-Fi connectivity that enables HVAC systems to be controlled through remote access.
The key players profiled in the report include 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.
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