The Global Smart Thermostat Market was valued US$ 1.9 Bn in 2020 is expected to reach US$ 6.8 Bn by 2027, with a growing CAGR of 19.8% during the forecast period (2021-2027).
Thermostats are the devices that are responsible to detect and maintain the temperature and ventilation in an enclosed area such as home, offices, or gathering areas. Smart thermostats are thermostats that have the ability to be operated with the use of smart devices such as smart phone or laptops. These applications can be operated with home automation and are accountable to maintain home’s heating, ventilation, and air conditioning (HVAC) system. Consumers can operate the HVAC system manually using internet-connected devices such as smartphones and laptop or even automatically.
Major Factor driving the smart thermostat market include rising adoption of smart homes owing to rise in disposable income and outbreak of COVID-19. Moreover, advancing technologies with IoT incorporated in HVAC systems is propelling the market growth. Additionally, Government is making it mandatory to install smart HVAC systems so as to increase energy efficiency in new infrastructure.
By Connectivity Technology
The wireless network segment accounted the maximum share of the market both in terms of value and volume during the forecast period from 2021 to 2027. The dominance is expected to continue owing to its low installation and maintenance cost. Wireless networks provide much better flexibility and scalability, and better connectivity and therefore is most widely used as compared to wired network technologies across the world.
Major technologies utilized in the smart thermostat are Wi-Fi, Bluetooth, Power Line Communication (PLC), Ethernet, and ZigBee. In 2020, Wi-Fi accounted the maximum share of the market, however ZigBee technology is projected to observe the fastest growth during the forecast period. This growth can be attributed to easy to implement process, comparatively economical, and low power consumption.
Rapid industrialization and surge in infrastructure in developed and developing nations is anticipated to drive the new installation segment during the forecast period. Factors such as increasing focus of architects, consumers, and stringent governmental regulations to implement energy-efficient HVAC systems and controls leads in installations of smart thermostat in new infrastructure.
Geographically, The Asia Pacific region is the dominating segment throughout the forecast period as the region is developing rapidly and the construction industry is the major contributor of smart thermostat market. The surge in population growth in this region along with environmental awareness is driving the industry with fastest pace.
The impact of COVID-19 has greatly affected the market of the smart thermostat industry. In early COVID-19 outbreak, it tends to impact negatively on the smart thermostat market. As many of the countries are facing corporate slowdowns, the supply chains for smart thermostats are also hampered. The industrial and commercial markets are experiencing a demand supply gap. Moreover, in later 2020, as COVID-19 situation has provoked people to install more of smart homes appliances for their leisure, thus the demand for smart thermostat increased.
|Rising adoption of smart home appliances and technologies during this COVID-19 situation
|The increasing usage of IoT in regular appliances such as heating, Ventilation, and Air Conditioning (HVAC) systems
|The favourable governmental regulations regarding energy efficiency in buildings
|Stringent regulations by governmental bodies to install energy efficient appliances in houses
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