The Global Smart Thermostat Market was valued US$ 1.9 Billion in 2020 is expected to reach US$ 6.8 Billion by 2027, with a growing CAGR of 19.8% during the forecast period (2021-2027).
The increasing usage of smartphones, rising unit energy costs, demand for efficient energy management solutions, and desirable regulatory policy scenarios are expected to propel the growth of the market in the next few years. Progress in industrialization and a significant increase in population are some of the other driving forces of the global smart thermostat market. However, significant investments are necessary to develop innovative smart thermostats and improve control systems. This may hinder the entry of small and medium-sized enterprises (SMEs) in the market. However, the HVAC industry is experiencing exponential growth. In addition, advances in proprietary distributed equipment technology and increasing demand for cloud computing in the HVAC industry provide profitable market opportunities.
Outbreak of COVID-19 had both positive and negative impact on the smart thermostat industry based on time frame. The early months of COVID-19 outbreak have hampered the smart thermostat market negatively by affecting the supply chain for the market. Regions like U.S., South Korea, China, and Japan have been largely affected by the pandemic. These regions hold a great manufacturing share of smart thermostat market. The epidemic has not only affected the manufacturing process but also the supply chain for the market. Both the industrial and residential verticals were experiencing a low demand in early time of pandemic. On the other hand, sequential years of the COVID-19 pandemic have a positive impact on the smart thermostat industry owing to increased adoption of smart homes and offices in developed countries due to COVID-19 situation. This pandemic have imposed a stay- home orders mandatory for most of the population and thus people have experienced increase in interaction and changed way of living in their homes leading to smart home revolutions by installing smart thermostat devices in their spaces.
The smart thermostat controls the heating, ventilation, and air conditioning systems of a home with a thermostat that can be used with home automation. These smart devices offer users the advantage of being able to control the temperature throughout the day using manual and automatic programs. This allows the user to adjust the heating settings from another device connected to the internet, such as a laptop or smartphone. Smart thermostat also controls smart devices such as radiators and boilers for window air conditioners, individual air conditioners, portable air conditioners, heaters, and air conditioners used in smart infrastructure.
Global Smart Thermostat Market by Connectivity Technology Outlook (Revenue, USD Million, 2021-2027)
- Wireless Network
- Wired Network
Global Smart Thermostat Market by Vertical Outlook (Revenue, USD Million, 2021-2027)
Global Smart Thermostat Market by Technology Outlook (Revenue, USD Million, 2021-2027)
Global Smart Thermostat Market by Application Outlook (Revenue, USD Million, 2021-2027)
- Air Conditioning
Global Smart Thermostat Market by Region Outlook (Revenue, USD Million, 2021-2027)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Smart Thermostat Market Key Findings:
- Based on connectivity technology, wireless network segment is growing with a high CAGR during the forecast period. The segment is anticipated to show good growth as the wireless network technology is much easier and advanced to use as compared to wired network.
- On the basis of vertical, the residential segment is accounted to hold the largest market share in the forecast period. The segmental growth is credited to the rapid construction and building activities in developing regions, and increasing disposable incomes.
- Based on technology, the Wi-fi segment is anticipated to drive the market during the
- On the basis of application, the heating application segment is anticipated to held the largest market share. Regions like America have comparatively low temperatures thus the smart thermostats are required to maintain a warm temperatures in homes.
- Based on regions, the Asia Pacific region is anticipated to capture a significant portion of the global smart thermostat market during the forecast period. APAC is a developing nation and therefore have numerous new infrastructures in making, moreover rise in disposable incomes have led to more installations of such smart thermostats in both residential and commercial buildings.
Smart Thermostat Market Company Profiles and Competitive Intelligence
The key players operating in the smart thermostat market are:
- Alphabet (Google Nest)
- Emerson Electric
- Honeywell International
- Lennox International
- Carrier Corporation
- Johnson Controls (Lux Products)
- Legrand (Netatmo)
- Resideo Technologies
Smart Thermostat Market Recent News:
- In June 2021, Carrier Corporation announced the complete and successful acquisition of Guangdong Giwee Group, which is a HVAC system manufacturing company based in China.
- In January 2021, Lennox International Inc. and Service Experts, Inc., agreed to sign an merger agreement. This merging has made Lennox International a large enterprise with approx. 10000 employees and a leading market position in North American HVAC systems market.
- In July 2016, Amazon have signed an agreement to invest of approx. USD 61 million in an smart thermostat market company named Ecobee. The Investment has resulted in advancements of technology incorporated in the smart thermostat industry.
- In January 2011, Lennox Internationals Inc., have successfully acquired the Kysor/Warren business from The Manitowoc Company, Inc.