Smart Thermostats Market Size, Share, Trends, Growth Report and Forecast 2022- 2028

Smart Thermostats Market: Industry Prospective

The Smart Thermostats Market was worth around USD 2,254.1 million in 2021 and is estimated to grow to about USD 6866.4 million by 2028, with a compound annual growth rate (CAGR) of approximately 20.4 percent over the forecast period. The report analyzes the Smart Thermostats Market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the private hospital market.

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Smart Thermostats Market: Overview

A smart thermostat is a device that controls the temperature of a space or room where heating, ventilation, and air-conditioning (HVAC) equipment is placed. A smart thermostat may make automatic and intelligent changes for clients in order to save energy and interact with sources outside of an HVAC system.

The growing adoption of smart infrastructure in residential & commercial sectors, the increased penetration of IoT and AI-based technologies, and the increase in the use of smart technology in medical monitoring are major factors driving the growth of the smart thermostat market in the forecast period. In addition, the increasing energy prices, rising need to optimize power in order to reduce energy bills, and improved return on investments offered by smart thermostats are expected to drive the global smart thermostat market in the coming years. The increasing consumer awareness about the safety and efficiency of smart thermostats is also likely to propel the smart thermostat market in the upcoming years. The growing encouragement from governments for using energy-saving devices is also driving the smart thermostat market. Moreover, advanced features of smart thermostats, surging disposable income of people, and increasing demand for energy-saving devices are expected to fuel the global smart thermostat market in the approaching years. However, lack of awareness about the smart thermostat and rising price-based competition are major factors expected to hinder the smart thermostat market during the forecast period.

COVID-19 Impact:

COVID-19 had a detrimental impact on the smart thermostat market in 2020, resulting in lower shipments of smart thermostats and income generated from them. The COVID-19 pandemic has significantly impacted the supply-demand chain of the smart thermostat market. The countries like the US, China, South Korea, and Japan, which own a significant share of the global smart thermostat manufacturing have been adversely affected by the pandemic. Along with this, the commercial, and industrial verticals that hold a major share of the market witnessed a low demand, which is expected to continue for the short term due to the global slowdown because of the pandemic. In addition, the rise in tariffs on Chinese manufactured products by the U.S. in the wake of a global pandemic has also added pressure on Smart Thermostat manufacturers who are dependent on China for hardware. However, this trend is expected to discontinue in the latter half of the year as the demand is expected to increase due to the growing concern for energy efficiency.

Smart Thermostats Market: Growth Drivers

Increasing adoption of smart homes.

The energy consumption levels of an HVAC system can be optimized to a greater extent by using smart thermostats. Smart thermostats use wireless communications, internet connectivity, mobile devices, and cloud computing to conserve energy and regulate the operation of HVAC systems, lowering expenses. Customers' interest in adopting smart thermostats in smart homes has risen as technology has evolved and several gadgets have seen a rapid improvement. Moreover, home from home orders due to the COVID-19 pandemic has changed the way how people interact and live in their homes. People are configuring their physical space to meet new functional requirements, including working and learning at home, creating at-home gyms, or finding new ways to relax and enjoy themselves. Connected homes, automated systems, and new technologies have played a critical role for the people staying at home. As a result, demand for smart thermostats is likely to rise during the forecast period as a result of the smart home revolution.

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Smart Thermostats Market: Restraints

Smart thermostats have high production and installation expenses.

Upgrades to control systems and the development of novel smart thermostats will necessitate large expenditures. This makes it difficult for small and medium-sized businesses to enter the market for smart thermostats. HVAC systems with smart thermostats require fine-tuning and particular manufacturing of parts during installation for optimal functioning and failure avoidance. The end-user may have to spend more in the long term for repairs if the installation is not done by a trained professional, or the HVAC systems may not perform properly. As a result, the cost of system installation is increased by the need for a professional staff. In addition, concerns regarding data security and the lack of awareness are the restraining factors for the market growth.

Smart Thermostats Market: Opportunities

Increasing demand for self-learning devices

End consumers need automatic functionality because it reduces human labor and is more convenient. As a result, self-learning energy-saving gadgets are becoming more popular as a means of lowering energy use. Smart thermostats are ideal for residential and commercial applications due to their self-learning mode and ability to be controlled remotely via smartphones and tablets. The rising usage of these self-learning devices in residential applications is likely to provide market participants with a chance to expand their residential share. Self-learning gadgets will also assist the elderly in controlling HVAC equipment without having to deal with difficult programming.

Smart Thermostats Market: Challenges

High upgradation costs of existing systems

Traditional HVAC equipment is generally wired and is equipped with old hardware, which is incompatible with the advanced smart thermostat. Upgrading existing thermostat systems with smart thermostats involves not only the thermostats but also the connected equipment that they control, as traditional HVAC equipment is generally wired and is equipped with old hardware, which is incompatible with the advanced smart thermostat. Upgrading HVAC systems at the building level necessitates a comprehensive examination of existing systems and the preparation of a strategy to incorporate an updated smart thermostat into the existing HVAC system. The procedure includes design and execution, both of which are time-consuming and costly. Another difficult issue with retrofits is the update of incomplete devices, which results in an inability to recognise the presence of a problem in the system.

Smart Thermostats Market: Segmentation

The Smart Thermostats Market is segregated based on products, Connectivity Technology, Installation Type, and Vertical.

On the basis of Connectivity Technology, the Wi-Fi segment dominated the market, in terms of and is expected to follow the same trend during the forecast period. This domination is attributed to factors like reducing the installation and maintenance costs, providing higher flexibility and scalability, and better connectivity. The increasing adoption of smart homes is fuelling the demand for smart thermostats based on wireless connectivity technology.

On the basis of vertical, the residential segment dominated the market in the forecast period. The adoption of energy-efficient HVAC controls such as smart thermostats has been fueled by a growing awareness of energy conservation and efficiency, as well as environmental protection, as they aid in the most efficient use of energy and the maintenance of the most comfortable and healthy indoor environment. Furthermore, favourable government regulations and tax credit facilities for HVAC system installation, as well as end-users' increased focus on lowering power costs, have all aided the growth of the smart thermostat market in the residential vertical.

Global Smart Thermostats Market Report Scope:

Recent Developments

• In 2021, Eco bee Announces New Integration with Alarm. com-Based Security and Smart Home Solutions. EcoBee smart thermostats will be integrated with Alarm.com's security and smart home solutions, allowing consumers to operate their EcoBee smart thermostats from inside Alarm.com's applications.
• In 2020 Carrier partnered with EcoBee to offer co-branded versions of the ecobee3 lite Pro and EcoBee Smart Thermostat Pro with voice control. The EcoBee smart thermostats Carrier-powered devices can be linked to the Carrier Connected Portal, allowing contractors to remotely diagnose and resolve system issues and errors.

Smart Thermostats Market: Regional Landscape.

Asia-Pacific dominated the market due to the adoption of smartphones and smart electronic appliances in the residential, commercial, and industrial sectors. In addition, technological advancements, appliances in residential buildings, such as washing machines, heating, and cooling equipment, and refrigerators are increasingly becoming smart. This implies that they can connect to the internet. Hence, all such factors are anticipated to boost market growth in the coming years.

The North American market is expected to witness significant growth due to the existing residential and commercial infrastructure in the region being integrated with the most advanced facilities, which is driving the smart thermostats market in the region. In addition, the federal energy management laws enforced by the Office of Energy Efficiency & Renewable Energy are making it imperative for end-users to use energy-saving devices boosting the demand for Smart thermosets in the market.

Smart Thermostats Market: Competitive Landscape

Some of the main competitors dominating the Smart Thermostats Market include -

• Alphabet (Google Nest) (US)
• Emerson Electric (US)
• Honeywell International (US)
• Lennox International (US)
• Ecobee (Canada)
• Carrier Corporation (US)
• Johnson Controls (Lux Products) (Ireland)
• Legrand (Netatmo)  (France)
• Resideo Technologies (US)
• Siemens (Germany)
• Trane Technologies (Ireland)
• Control4 Corporation (US)
• Nortek Control (US)
• Tado (Germany)
• Alarm.com (US)
• Bosch Thermotechnology (Germany)
• Centrica Hive (UK)
• Cielo Wigle (US)
• Climote (Ireland)
• Empowered Homes (MYSA) (Canada)
• Eve Systems (Germany)
• MRCOOL (US)
• Radio Thermostat Company of America (US)
• Salus Controls (UK)
• Vine Connected (US)
• VIvint (US)
• Zen Ecosystems (US).

Smart Thermostats Market is segmented as follows:

By Products:

• Connected Smart thermostat
• Learning Smart Thermostat
• Standalone Smart Thermostat

By Connectivity Technology

• Wireless Network
• Wired Network

By Installation Type

• New Installation
• Retrofit Installation

By Vertical

• Residential
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa