Global Smart Thermostat Market By Product (Connected, Standalone, and Learning), By Application (Residential, Commercial, and Industrial), By Technology, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 12560
- Number of Pages: 307
The Global Smart Thermostats Market size is expected to be worth around USD 27.80 Billion by 2032 from USD 3.70 Billion in 2022, growing at a CAGR of 23.00% during the forecast period from 2023 to 2032.
A smart thermostat is an electronic device that can be used to adjust the temperature automatically based on weather conditions, cooling & heating requirements, as well as daily schedules. Smart thermostats can detect patterns in the environment and conserve energy by heating or cooling. A smart thermostat can monitor the behavior of occupants and adjust the heating or cooling system accordingly. It uses less heating and cooling when the house is empty for a longer time.
The growing demand for smart devices like smart thermostats is driven by consumer preference for energy-saving devices and smart gadgets. Smart thermostats are gaining huge popularity because they control heating and cooling while also conserving significant amounts of energy. The market is seeing positive changes due to its increasing popularity as a home automation device in smart homes.
Market dynamics are positively influenced by the increasing importance of energy management solutions and increased smartphone use. Many manufacturers now offer closed APIs (application programming interfaces), where vendors act as gatekeepers and provide access to these devices. Open API has been adopted by many vendors in recent years.
This allows more thermostats to be connected with existing home energy management systems and utility systems. Ecobee’s Ecobee API is an HTTP-based interface that allows access to and control of its Ecobee thermostats. Integrators can access, update, and poll the thermostat’s data.
Developing Smart Cities and Consumer Awareness are Driving the Growth of the Smart Thermostat Market
The smart thermostat market is expected to grow rapidly during the forecast period. Growing awareness among consumers of smart thermostats and technological developments are the factors driving the growth of the global smart thermostats market.
The acceptance of IoT-supported HVAC systems has increased since the COVID-19 pandemic, which has raised the demand for smart thermostats in the smart thermostats market. Society is becoming more urbanized with increasing energy demand in smart cities.
These connected technological advancements and Internet of Things solutions can be used to upgrade public safety, critical infrastructure, street lighting, the energy efficiency of buildings, and traffic flow. It aims to improve city life as well as work and leisure while reducing the city’s carbon footprint.
Smart cities need to live up to their name by accepting technology to drive through long-term growth. Technology must increase resource efficiency and present responsible decisions for governments and the public.
This includes not only residential buildings and businesses but also universities, hospitals, non-profit organizations, and individuals. These factors should be addressed using sensor technology, behavioral economics, and gamification. Which also transforms physical infrastructure and offers smart resource allocation.
These cities can implement technologies that use algorithms and sensors to incrementally increase heating and cooling efficiency to become more energy efficient. This can have a direct impact on the smart thermostat market expansion.
High Cost and Large Investment Can Obstruct the Smart Thermostat Market
Advanced technological control systems and connected thermostats require large investments. It may be difficult for small and medium-sized enterprises (SMEs) to get into the market. Customers with less disposable income may have difficulty paying the price.
According to the report in December 2020, smart thermostat users usually pay for them for two years. They can save 15% on cooling costs and 11% on heating. The initial cost of a thermostat can be up to four times more than the average thermostat.
It may be difficult to use the touchscreen panel and learn the software for new users. This product may not be for everyone because of its big manuals and complex handling. If the device isn’t correctly installed and set, it will not provide guaranteed services like savings. The global smart thermostat market will be constrained by the high manufacturing cost, installation cost, and different hardware requirements.
Self-Learning and Energy-Saving Technology are Creating Opportunities in Smart Thermostat Market
Customers need automated features because they are easier and save time. Self-learning energy-saving technology is becoming more popular to decrease energy consumption. Smart thermostats are ideal for both home and business because of their self-learning mode and remote control functionality.
Smart thermostat market players have an opportunity to increase their share of the residential segment with the increased use of self-learning thermostats in residential applications. The self-learning device allows elders to operate their HVAC systems without needing to learn complex programming and big manuals.
Smart cities must use technology to support long-term growth to live up to their name. Technology should increase resource efficiency and encourage responsible decision-making by the public as well as the government. This includes residential buildings, commercial buildings, and businesses owned by the city as well as institutions offering higher education, hospitals, charities, and private properties.
These elements are expected to be addressed using sensor technologies, behavioral economists, and gaming to upgrade the physical infrastructure and encourage smart resource allocation. These cities will likely implement technologies that use algorithms & sensors and increase cooling & heating efficiency to reduce their energy consumption. It is expected that this will directly impact the growth of the Smart Thermostats Market around the world by offering many opportunities for the small and major players in the market.
Smart thermostats can save electricity. This is why smart thermostats will continue to be in demand throughout the forecast period. It has also been affected by the increased demand for energy-efficient solutions in smart cities. It is expected to propel both the construction industry and the smart thermostat industry simultaneously.
Nest Labs, a division of Google LLC, conducted a study that compared energy bills in 41 states before and after the installation of Nest Learning Thermostats. Two independent studies were used to conduct the study: real Nest Learning thermostats and real homes with real people.
According to the results, Nest Learning Thermostat averaged a 10% to 12% savings on heating and 15% on cooling. Based on average energy costs, the company calculated an average annual savings of USD 131 to USD 145. The Nest Learning Thermostat was able to pay for itself in less than two years. These positive results were likely to encourage smart thermostat adoption in the global smart thermostats market during the study period.
Technological advances, smart thermostats market conditions, changes in government policies, and emerging economies are all driving low-carbon resources and 0 emission policies to sustain the environment. The carbon footprint of electricity consumption is directly affected by the fact that electricity generation involves the burning of non-renewable resources. This results in a carbon footprint to damages the environment.
By Product Analysis
Standalone Segment Dominates the Market with Growing CAGR During the Forecast Period
The standalone segment leads the smart thermostats market and is expected to grow at the highest CAGR from 2023 to 2032, owing to increasing applications in small or remote buildings across the globe. These units work in conjunction with automatic thermostats that communicate directly to regulate, close, or open flow. Additionally, standalone thermostats play an important role in HVAC room applications such as fan coil units, heating and cooling, and variable airflow.
The connected segment is expected to grow with a CAGR exceeding 12.4% between 2023-2032. The growth of the connected smart thermostat segment is driven by the rise of energy-saving devices and the expansion of the smart thermostat market. Connected smart thermostats cost much less than others in the competition, which helps the segment to grow.
Also, increased product demand from remote connectivity, which permits homeowners to control their thermostats remotely via smartphones, tablets, and other internet-connected portable devices, is anticipated to drive the growth of the connected segment through the forecast period.
By Technology Analysis
Wired Technology Segment is Expected to Reach the Largest Market Share During the Forecast Period
Based on technology, the smart thermostat market is divided into wired and wireless. The wired segment will grow during the forecast period. Wired smart thermostats are the first to be implemented in commercial, industrial, and some residential applications. The increasing adoption of wired smart thermostats in the U.S. is propelling the growth of the wired segment to grow significantly throughout the forecast period of 2023 to 2032.
The wireless segment is expected to grow vigorously during the forecast period. The wireless network helps to reduce the cost of installation and maintenance. It also gives better connectivity as compared to the wired network. A wireless network device provides direct temperature control through a smartphone or app via an internet connection. The ability to remotely control thermostats from anywhere is driving the wireless segment. Wireless technology automatically regulates temperature to maximize efficiency and comfort.
By Application Analysis
The residential Segment is Expected to Grow Exponentially During the Forecast Period
The residential segment dominates the market, with growth expected to be high during the forecast period 2023-2032. This is due to an increase in energy consumption and the necessity for remote access solutions that monitor and control energy consumption. The increasing awareness among customers for environmental protection and efficiency has propelled the acceptance of smart thermostats in the residential segment.
Smart thermostats provide a comfortable and environment-friendly nature in residential buildings. Due to their energy efficiency, smart thermostats are widely accepted by customers across the world. These factors are increasing the smart thermostat revenue share in the market.
The commercial segment is expected to grow at a significant growth rate throughout the forecast period of 2023 to 2032. This growth is due to the increasing use of smart thermostats in the commercial sector. Smart thermostats provide more informational data to operations and building managers. In commercial HVAC systems, smart thermostats help to regulate the cooling or heating of various devices such as rooftop units, chillers, fan coil units, zone dampers, and heat pumps.
Key Market Segments:
COVID-19 Impact Analysis:
COVID-19 Decreased the Demand for Smart Thermostats
The COVID-19 pandemic has halted normal life for the affected people across the world. It was important for governments and other organizations to reconsider how they conduct business. The economy was affected by construction project delays, supply chain problems, and a lack of investment in commercial and retail real estate.
Despite the recent pandemic, home automation has become more popular, and people were able to spend more time in their homes due to lockdown restrictions. More companies have entered the market as a result. The market has seen more companies enter the market, and online sales have increased due to it. This has led to a greater acceptance of smart thermostats and other home automation products.
North America Rules the Smart Thermostat Market with Major Revenue Share
North America is the largest market for smart thermostats, with a 37.5% share of the market. The presence of key vendors in this region and increasing awareness about energy consumption will make it the dominant market for smart thermostats during the forecast period. Smart thermostat market growth is further driven by the increasing average unit rate for power, which encourages households, businesses, and industries to adopt smart energy solutions.
Europe is the second largest region behind North America, driven by supportive policies from local governments. For example, the UK Department for Energy and Climate Change created the Energy Company Obligation (ECO) to reduce UK energy consumption and promote upgraded household finances towards energy efficiency.
Asia Pacific is the fastest-growing region in the smart thermostat market. Most of the world’s population lives in the Asia-Pacific region, which makes the Asia Pacific the biggest market for companies to expand their businesses. Smart thermostat market share in the region is expected to increase as smartphones and other electronic products gain popularity in residential, commercial, and industrial sectors.
Technological developments are making home appliances such as refrigerators, HVAC, and washing machines more and more advanced. This will allow them to connect to the internet to monitor and control the appliances as per the customer’s need. As a result, all these variables are projected to boost the expansion of the market in this region.
Key Regions and Countries:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
The market for smart thermostats includes major players like Emerson Electric Co. and Honeywell International Inc., Schneider Electric, Zen Thermostat (Jones Controls), Siemens AG, Zen Thermostat (Alphabet Inc.), Netatmo SA, Carrier Corporation, and others. To maintain their market dominance, these market players have adopted various strategies, including partnerships, acquisitions, and expansion in different regions.
For example, in September 2021, a new Lotte Edge technical center which serves as the work area for devices that specialize in safety testing and measuring boiler and water heater makers, was announced. Carrier also collaborated with Ecobee in January 2020 to offer co-branded Ecobee3lite Pro and Ecobee Smart Thermostat Pro models with voice control. These products will provide homeowners with the most recent experience in comfort and energy savings while also providing personalized comfort.
Key Market Players:
- Google Nest
- Resideo Technologies Inc.
- Honeywell Home
- Tado GmbH
- Centrica Hive Limited
- Johnson Controls
- Netatmo SA
- Other Key Players
- In June 2022, Emerson, a global technology and industrial leader, announced a multiyear strategic framework agreement with BayoTech, a pioneer in hydrogen solutions, to accelerate hydrogen delivery around the world. Emerson will provide advanced automation technology, software, and products that will allow BayoTech to build hundreds of hydrogen plants to produce cleaner and cheaper hydrogen.
- In June 2022, Albioma, a French independent energy provider and producer, partnered with Emerson to assist in the transition of its Bois Rouge coal-fired plant to 100% renewable energy. Emerson’s software and automation systems will permit the coal-fired power plant to become an energy feedstock as part of Albioma’s larger mission to transform all its fossil fuel plants into renewable energy.
Report Features Description Market Value (2022) US$ 3.7 Bn Forecast Revenue (2032) US$ 27.8 Bn CAGR (2023-2032) 23.0% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Product – Connected, Standalone, and Learning; By Application – Residential, Commercial, and Industrial; By Technology – Wired and Wireless. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Google Nest, Resideo Technologies Inc, Emerson, Ecobee, Control4, Honeywell Home, Tado GmbH, Centrica Hive Limited, Johnson Controls, Siemens, Netatmo SA, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What will be the market size for Smart Thermostats Market in 2032?
In 2032, the Smart Thermostats Market will reach USD 27.8 billion.What CAGR is projected for the Smart Thermostats Market?
The Smart Thermostats Market is expected to grow at 23.0% CAGR (2023-2032).Name the major industry players in the Smart Thermostats Market.
Google Nest, Resideo Technologies Inc., Emerson, Ecobee, Control4, Honeywell Home and Tado GmbH and Other Key Players are the main vendors in this market.List the segments encompassed in this report on the Smart Thermostats Market?
Market.US has segmented the Smart Thermostats Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Product, market has been segmented into Connected, Standalone and Learning. By Technology, the market has been further divided into, Wired and Wireless.
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