Smart Thermostat Market by Connectivity Technology (Wireless Network, Wired Network), by Vertical (Residential, Commercial), by Technology, by Application, and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2021 to 2027

Market Overview:

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.

The Global Smart Thermostat Industry Segmentation:

By Connectivity Technology

• Wireless Network
• Wired Network

By Vertical

• Residential
• Commercial

By Technology 

• Wi-Fi
• ZigBee
• Others

By Application

• Air Conditioning
• Heating
• Ventilation

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Based on the Connectivity Technology, the wireless network accounted for the largest share in the Smart Thermostat market.

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.

Based on Technology, Wi-Fi accounted for the largest share of the smart thermostat market in 2020.

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.

On the basis of installation type, the new installation segment is anticipated to hold the maximum of the share in smart thermostat market in 2020.

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.

Based on regions, Asia Pacific accounted for the largest share in 2020, followed by North America and Europe.

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 report also provides in-depth analysis of smart thermostat market dynamics such as drivers, restraints opportunities and challenges

Drivers

• Increased Adoption of Smart Home Due To COVID19 Situation
• Emergence Of IoT Compatible HVAC Systems
• Government Regulations Related to Increasing Energy Efficiency Of Buildings
• Increase In Usage of Voice Assistant in Smart Home

Restraints

• High Cost of Manufacturing And Installing Smart Thermostats
• Data Security Issues

Opportunities

• Growing Demand for Self-Learning Devices
• Growing Demand for Cloud Computing In The HVAC Industry

Challenges

• Existing System Upgrade Costs are High
• Inability To Work Offline
• Supply Chain Disruptions due To COVID19 Situation

COVID-19 Impact on the Smart Thermostat Market Analysis

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.  

The report also provides in-depth analysis of key trends in smart thermostat market

Sr. No.	Trends	Impact
1	Rising adoption of smart home appliances and technologies during this COVID-19 situation	Positive
2	The increasing usage of IoT in regular appliances such as heating, Ventilation, and Air Conditioning  (HVAC) systems	Positive
3	The favourable governmental regulations regarding energy efficiency in buildings	Positive
4	Stringent regulations by governmental bodies to install energy efficient appliances in houses	Positive

The report also provides in-depth analysis of recent news developments and investments

• In October 2020, Emerson successfully acquired Open Systems International, Inc. (OSI Inc.) which is a leading operations technology software company serving consumers in global power industry and in other end markets. The acquisition was made worth of USD 1.6 billion in all cash transaction.
• In July 2019, Zedi’s software and automation businesses were entirely acquired by Emerson. With the addition of the Zedi Cloud Surveillance Control and Data Acquisition (SCADA) platform, Emerson can increase output and reduce operating costs for oil and gas producers through cloud-based monitoring, control and optimization.
• In January 2018, Google announced an entire acquisition over Nest Labs, Inc. which was operating independently from 2015 till 2018. The transaction was worth of USD 3.2 billion in cash.  
• In December 2015, Honeywell successfully completed acquisition of Elster, entering in the business of gas, electricity and water meters. The acquisition was accounted to cost USD 5.1 billion. The company then focused more on smart meters and accounted it to be the market driver for 2016 and further.

Company Profiles and Competitive Intelligence

• Alphabet (Google Nest)
• Emerson Electric
• Honeywell International
• Lennox International
• Ecobee
• Carrier Corporation
• Johnson Controls (Lux Products)
• Legrand (Netatmo)
• Resideo Technologies
• Siemens
• Trane Technologies
• Control4 Corporation
• Nortek Control
• Tado
• Alarm.com
• Bosch Thermotechnology

The unique insight provided by this report also includes the following:

• In-depth value chain analysis
• Opportunity mapping
• Sector snapshot
• Key Players Positioning Matrix
• Strategies Adopted-Benchmarking Heat Map
• Market trends
• Covid-19 impact analysis
• Product comparison
• Pre & Post COVID 19 impact on the smart thermostat market
• Competitive Landscape

Frequently Asked Questions (FAQs)

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