The global Smart Thermostat Market size is expected to value at USD 2.99 billion by 2022. The market is subject to witness a substantial growth due to the soaring demand for smart efficient solutions from number of household across the globe. In addition, increasing adoption of smart household appliances, majorly from North American and European region is expected to drive the market growth in upcoming years. Expansion of smartphones industry is acting as an enabler for smart energy management solutions.
Introduction of open source developer APIs offer flexibility and higher performance for smart thermostat devices. These factors are anticipated to positively affect market growth over the forecast period. Globally, the smart thermostat industry is predicted to grow at CAGR of 18.7% in the forecast period, providing numerous opportunities for market players to invest in research and development of the market.
Smart thermostats are increasing adopted to carry out operations such as heating and cooling devices for residential or commercial applications. Smart thermostats are considered as a vital part of smart or modular home. Smart thermostats are incorporated with next generation open source developer APIs that enhances their usability and performance capability.
Increasing energy consummation and growing demand for remote access solutions to carry out energy management are expected to boost market demand for smart thermostats over the forecast period. In addition, reduced energy bills offers better return on investments leading to a wide acceptance across numerous households, in the recent years.
Moreover, increasing demand form businesses and large-scale organization to monitor and adopt low cost solutions for heating, ventilation and air-conditioning (HVAC) systems are projected to foster market growth over next seven years. However, factors such as security concerns, data breaches and higher initial cost are expected to acts as the potential constraints for sustained market growth. Yet, integration of advanced technology that enables identification of user behavior, analyzing their patterns, managing the heating, ventilation and air-conditioning (HVAC) systems automatically. Smart thermostats are operated via remote monitoring capabilities with the help of wireless connectivity. These factors are expected to favor market expansion over the upcoming years.
Smart thermostats such as the Google Nest is capable of a self-learning by analyzing user activities with the help of motion and Infrared (IR) sensors, temperature, and humidity sensors. The recent technological advancements in short-range communication sector coupled with development of novel products are propelling the growth of smart thermostats market, in the recent years.
The smart thermostat industry is broadly categorized into four major segments based on key technology type such as Wi-Fi, ZigBee, Ethernet, and Bluetooth. Use of wireless technologies enable smart thermostats to connect wirelessly with various heating, ventilation and air-conditioning(HVAC) systems and the other home automation tools.
The smart thermostat provides remote access for user via wirelessly on their smartphones. ZigBee technology is considered as one of the fastest growing segment in the smart thermostat market with substantial revenue generation in the last few years. Growing popularity of the ZigBee technology segment is attributed to its advantages such as low power consumption and cost-effectiveness.
The smart thermostats industry is divided by region as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the rise in the implementation of latest technologies in domestic appliance market, substantial demand for smart energy solutions, and existence of well-established manufacturing infrastructure in the region. Asia-Pacific region is predicted to hold major market share in the smart thermostat market with massive growth in forecast period.
Countries such as China and Japan are leading the Asia-Pacific market with favorable government initiatives, strong economic growth, shifting trend towards smart domestic appliances, and significant investment by leading industry players considering potential growth opportunities in the region.
The key players in the smart thermostat industry are Honeywell International Inc., Google Nest LLC, Ecobee Inc., Schneider Electric SE, Emerson Climate Technologies Ltd., Radio Thermostat Company of America, Inc., Carrier Co., Ingersoll Rand, Inc., Allure Energy, Inc., Tado GmbH, Eneco Holding N.V.,, British Gas Hive plc, and Lux Products Co.
Smart Thermostat Technology Outlook (Revenue, USD Million, 2012 - 2022)
• Others (Near Field Communication (NFC), Bluetooth, and Ethernet)
Smart Thermostat Regional Outlook (Revenue, USD Million, 2012 - 2022)
• North America
• Asia Pacific
• Australia and New Zealand
• Latin America
Research Support Specialist, USA