The Global Smart Thermostat Market size is expected to reach $9.5 billion by 2028, rising at a market growth of 16.9% CAGR during the forecast period.
A thermostat is a device used to regulate a physical system's temperature and maintain the system's temperature near the desired setpoint. The thermostat can be used to a setpoint temperature in any method or apparatus. For instance, in building heating, central heating, HVAC (Heating, Ventilation, and Air Conditioning) systems, water heaters, and kitchen appliances which includes refrigerators as well as ovens.
A smart thermostat is the thermostat device that could be controlled with a phone, internet-connected devices, tablet, or smart speakers. Smart thermostat generally allows the user to schedule their desired temperature settings and incorporate the thermostat devices into home automation systems.
Depending on the model, a smart thermostat can offer numerous features. Some devices can learn their user's heating & cooling preferences and automatically adjust their setting to them. Many smart thermostats have diagnostic features which can detect problems in the ducting or HVAC system. A smart thermostat may also remind the owner about the system's maintenance, like when it's time to change the air filter. Also, it can provide details regarding energy consumption.
The pandemic impacted the construction sector, especially smart homes, buildings and city projects. Delays in construction projects negatively affected the economy. The main reason being this all were supply chain issues and a lack of investments in retail and commercial properties. Government-imposed lockdown procedures to curb the spread of the virus, which heavily reduced foot traffic in buildings, and caused the bankruptcy of many key market players. In the initial days, COVID-19 negatively impacted the smart thermostat market, leading to a decline in its revenues and unit shipments. As a result, the market showcased a slowdown. These are expected to propel the market demand for smart thermostat in post pandemic period.
Installing a smart thermostat means that the user can control the thermostat and change their home’s temperature from a distance, whether on the couch, on the train home from work, or even on vacation. For instance, if someone is coming back to home early and wants to set the perfect temperature before they reach home, they need to simply adjust the cooling or heating schedule for that particular day on the app. Likewise, if the user is on vacation, they can change their cooling schedule to keep the house warmer while they are gone. Hence, the utilization of smart thermostats to check and set the temperature of the user's home remotely while also reviewing the conditions of their HVAC is expected to propel the market.
The urbanization of society continues to rise rapidly, focusing on smart cities, where connected technologies and Internet of Things (IoT) solutions are being utilized to enhance critical infrastructure, public safety, energy efficiency, city lighting, traffic flow and traffic congestion. The aim is to decrease cities’ carbon footprint while making cities a better place to live, play and work. The increased urbanization of societies with IoT devices will boost the smart thermostat market.
HVAC systems integrated with smart thermostats need a custom fabrication and a fine-tuning of parts during the installation for their efficient working and failure elimination. Hence, there is a need for skilled professionals for the proper installation of smart thermostats. If there is even a minor issue during the fitting, the end user might need to pay a large amount of money in the long run for repairs, and in some cases, the HVAC system fails to work. The installation's high cost and problems during the installation may hinder the smart thermostat market’s growth.
Based on the technology, the smart thermostat market is segmented into wi-fi, ZigBee and others. The Wi-Fi segment witnessed the largest revenue share in the smart thermostat market in 2021. This is because of the increased adoption of wireless smart thermostats, which can easily connect with an application on the user’s phone. It aids the user in scheduling cooling or heating, facilitates automation with other devices and adjusts the home temperature. Also, the Wi-Fi communication protocol is globally the most widely used. Wi-Fi-connected devices can be easily controlled with mobile phones or tablets.
On the basis of product, the smart thermostat market is divided into connected, standalone and learning. The connected segment held the highest revenue share in the smart thermostat market in 2021. This is because of the rising product demand for owning remote connectivity, giving homeowners remote access to thermostats. These thermostats are operated through phones, tablets, smart speakers, and other internet-connected devices. The features of the connected thermostats to be controlled by the internet connection are expected to propel the segment’s expansion in the projected period.
By end-user, the smart thermostat market is classified into residential, commercial and industrial. The commercial segment recorded a substantial revenue share in the smart thermostat market in 2021. This is because of the rising deployment of smart thermostats in commercial spaces, as they provide great information to operation and facility managers. In the commercial HVAC system, a smart thermostat aids in adjusting the cooling or heating across numerous pieces of equipment like rooftop units, fan coils, heat pumps, zone dampers, etc.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 3.2 Billion |
| Market size forecast in 2028 | USD 9.5 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 16.9% from 2022 to 2028 |
| Number of Pages | 201 |
| Number of Tables | 353 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Product, Technology, End-user, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the smart thermostat market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region dominated the smart thermostat market with maximum revenue share in 2021. This is due to the increase in awareness regarding energy consumption and the presence of many primary vendors in the region. The rising average unit rate of power is encouraging industries, household consumers and enterprises to opt for smart energy solutions. Also, due to the increasing technological advancements and internet penetration, the market in the region is expected to grow.
Free Valuable Insights: Global Smart Thermostat Market size to reach USD 9.5 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Siemens AG and Emerson Electric Co. are the forerunners in the Smart Thermostat Market. Companies such as Resideo Technologies, Inc., Johnson Controls International PLC, Ecobee, Inc. (Generac Holdings, Inc.) are some of the key innovators in Smart Thermostat Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Siemens AG, Johnson Controls International PLC, Emerson Electric Co., Resideo Technologies, Inc., Snap One Holdings Corp. (Control4), Centrica Plc, Ecobee, Inc. (Generac Holdings, Inc.), Netatmo SAS (LeGrand Group), Tado GmbH, and Vine Connected Corporation (Xing Connected Corporation).
By Product
By End User
By Technology
By Geography
The global Smart Thermostat Market size is expected to reach $9.5 billion by 2028.
Easy controlling & HVAC scheduling are driving the market in coming years, however, High installation cost restraints the growth of the market.
Siemens AG, Johnson Controls International PLC, Emerson Electric Co., Resideo Technologies, Inc., Snap One Holdings Corp. (Control4), Centrica Plc, Ecobee, Inc. (Generac Holdings, Inc.), Netatmo SAS (LeGrand Group), Tado GmbH, and Vine Connected Corporation (Xing Connected Corporation).
The Residential segment is leading the Global Smart Thermostat Market by End-user in 2021 thereby, achieving a market value of $6 billion by 2028.
The North America market dominated the Global Smart Thermostat Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $4.5 billion by 2028.
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