Market Definition
The global Smart Thermostat Market was valued at USD 2.34 billion in 2021 and is predicted to reach USD 22.09 billion by 2030, registering a CAGR of 28.6% from 2022 to 2030.
Smart thermostats, also known as Wi-Fi thermostats or internet thermostats are components of regulating devices that sense the temperature of an operating system and maintain it to a desired and measured temperature. Smart thermostats are connected by internet smart devices such as smartphones, tablets, and smart speakers that typically allow scheduling the desired settings of temperature and incorporate them into home automation systems. Smart thermostats are widely used to limit the issues that are involved with using traditional programmable thermostats. Smart thermostats are employed by motion sensors and remote sensors to determine whether the home is occupied in order to suspend heating or cooling until the occupant returns.
Market Dynamics and Trends
The rapid growth in infrastructure equipped with ventilation and air conditioning systems, along with the development of smart cities & smart buildings that require energy-efficient temperature management systems are significant factors driving the smart thermostat market growth. According to the World Economic Forum, buildings were responsible for 40% of global energy consumption and 33% of greenhouse gas emissions in 2021.
Therefore, incorporating new smart buildings with sustainable and energy-efficient automation systems is expected to fuel the product demand. Also, various technological advancements such as self-learning capacity and touchless tech with the increased penetration of internet of things (IoT), artificial intelligence (AI), smart sensors, and other technologies create a positive impact on the growth of the market.
For instance, in December 2020, Carrier launched an updated zoning sensor to be used with its flagship Infinity System. This sensor provides homeowners with the ability to control an individual zone in an infinity zoning system where the consumers can adjust the fan and freeze the settings for each zone as well as monitor the humidity levels and outdoor temperature.
The high cost of manufacturing, the inability of the system to work offline, and the lack of awareness among people are factors that are expected to restrain the smart thermostat market growth throughout the forecast time frame. On the contrary, increasing use of virtual assistants such as Google Assistant and Amazon Alexa in home control to monitor home temperature, program schedules, or manage air conditioning is expected to provide lucrative opportunities for the growth of the global market during the forecast period.
Market Segmentations and Scope of the Study
The smart thermostat market report is segmented based on product, type, connectivity technology, installation type, component, application, end-user, and geography. Based on product, the market is classified into standalone, connected, and learning. Based on type, the market is segmented into wired and wireless. Based on connectivity technology, the market is bifurcated into WI-FI, infrared, ZigBee, and Bluetooth. Based on installation type, the market is classified into new installation and retrofit installation. Based on application, the market is fragmented into air conditioning, heating, and ventilation. Based on end-user, the market is divided into residential, commercial, industrial, and others. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.
Geographical Analysis
North America held the predominant share in the smart thermostat market in 2021 and is expected to continue its dominance during the forecast period. This is attributed to the increased adoption of Wi-Fi thermostats across different upcoming projects in the U.S., Canada, and Mexico, including smart building and smart city projects. Various market strategies such as innovation and product launches are adopted by major key players such as Alphabet (Google Nest), Honeywell International, EcoBee, and others to expand their businesses. For instance, in May 2022. EcoBee introduced two new smart thermostats, Smart Thermostat Premium and Smart Thermostat Enhanced which are equipped with radar, Ecobee’s most advanced sensor technology for improved occupancy and motion detection.
Asia-Pacific is expected to exhibit substantial growth in the smart thermostat market during the forecast period, due to the rising population penetration and increasing concerns about energy-saving devices such as infrared heating panels, smart plugs, smart radiator thermostats, and others. Smart thermostats are highly useful in saving electricity by efficiently monitoring the temperature required and reducing carbon emissions. Also, a rise in the adoption of green buildings and government initiatives to regulate energy-efficient practices across the commercial sector is expected to boost the growth of the global market in this region.
Competitive Landscape
The smart thermostat industry comprises key market players such as Ecobee, Emerson Electric Co., Honeywell International Inc. (Resideo Technologies), Zen Thermostat, Johnson Controls, Google Nest (Alphabet Inc.), Netatmo, Siemens AG, Schneider Electric, and Carrier Corporation. These market players are adopting various strategies such as partnerships and expansion across various regions to maintain their dominance in the global market.
For instance, in September 2021, Resideo unveiled a new edge technical center in Lotte that was intended to be the work area of devices that specializes in measuring and testing safety for globally operating boiler and water heater manufacturers. Moreover, in January 2020, Carrier partnered with Ecobee to provide co-branded versions of the Ecobee3 lite Pro and Ecobee Smart Thermostat Pro with voice control. These products are intended to offer homeowners the latest experience with personalized comfort and enhanced energy savings at home.
Key Benefits
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The smart thermostat market report provides a quantitative analysis of the current market and estimations through 2022-2030 that assist in identifying the prevailing market opportunities to capitalize on.
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The study comprises a deep dive analysis of the smart thermostat market including the current and future trends for depicting the prevalent investment pockets in the market.
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The information related to key drivers, restraints, and opportunities and their impact on the global market is provided in the report.
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The competitive analysis of the market players along with their market share in the market.
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The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
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Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.
Smart Thermostat Market Key Segments
By Product
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Standalone
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Connected
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Learning
By Type
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Wired
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Wireless
By Connectivity Technology
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Wi-Fi
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Infrared
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Zigbee
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Bluetooth
By Installation Type
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New Installation
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Retrofit Installation
By Application
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Air Conditioning
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Heating
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Ventilation
By End-use
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Residential
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Commercial
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Industrial
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Others
By Geography
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North America
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U.S.
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Canada
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Mexico
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Europe
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UK
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Italy
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Germany
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Spain
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Netherlands
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Taiwan
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Vietnam
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Rest of Asia Pacific
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RoW
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Latin America
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Middle East
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Africa
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