A smart thermostat is a digitally programmable heating system that remotely controls the heating & cooling at homes. With the growing trend of smart homes, smart thermostats are becoming a critical part of the home comfort system. Through internet connectivity, consumers can regulate their cooling & heating temperature settings for energy conservation & better comfort. It has been made possible owing to the capability of smart thermostats to communicate with emerging virtual private assistants & learn with AI capabilities.
The Global Smart Thermostat Market is anticipated to grow at a CAGR of around 19% during the forecast period, i.e., 2021-26. The rapidly expanding residential & commercial buildings are leading to the increasing deployment of HVAC systems, which, in turn, is driving the Global Smart Thermostat Market. In addition, the surge in energy prices and escalating need for optimizing power to cut down energy bills are also projected to boost the market. For instance:
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: US, Canada|
|Europe: Germany, UK, France, Spain, Russia|
|Asia-Pacific: China, India, Japan, Australia|
|South America: Brazil|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||Emerson Electric Co., Nest Labs, GridPoint, Inc., Tado GmbH, Honeywell International, Computime Group Ltd., Schneider Electric SE, Radio Thermostat Company of America, Ecobee, Inc., Control4 Corporation, Carrier Corporation, Siemens AG, Johnson Controls, Zen Ecosystems, Resideo Technologies, Inc., etc.|
|Unit Denominations||USD Million/Billion|
Furthermore, governments worldwide are encouraged to reduce energy wastage and use energy-saving devices, thereby driving the demand for smart thermostats. Besides, rising consumer awareness regarding efficiency & safety, coupled with advanced features of smart thermostats & the increasing disposable income, are expected to drive the market during 2021-26.
However, increasing price-based competition might hamper the overall market growth in the coming years. Nevertheless, the rising integration of advanced technologies like IoT & AI into smart thermostats is also fueling the overall market growth.
Impact of Covid-19 on the Global Smart Thermostat Market
The Covid-19 pandemic in 2020 brought unprecedented challenges to the Global Smart Thermostat Market. The market witnessed a significant decline in its growth due to the changing buying behavior of consumers. Even though the time spent at home amidst the pandemic was significantly high, people were more inclined towards buying essential goods rather than investing in smart devices. Hence, the dwindling interest in buying smart devices negatively influenced the growth of the Smart Thermostat Market amidst the pandemic.
Further, the lockdown imposed in the wake of the pandemic negatively impacted the production capacity of smart thermostats owing to the shutdown of manufacturing units. The market is highly dependent on China for hardware. However, China, the epicenter of the COVID-19 outbreak, adversely impacted the market's supply chain. Additionally, the US government increased tariffs on Chinese manufactured products, which created immense pressure on smart thermostat manufacturers who are dependent on China for hardware supply.