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.
Of them all, the Residential sector dominates the Global Smart Thermostat Market. Smart thermostats are used widely in residential buildings for controlling air conditioning, ventilation, & heating. Smart thermostats comprise several advanced features like voice assistance support, remote room sensors, & integration with other smart devices. All these features are promoting the growth of the smart thermostat market around the residential sector.
The rising awareness among people regarding energy conservation & environmental protection is also propelling the demand for energy-efficient HVAC devices like smart thermostats in residential areas. Moreover, the rapid development of smart residential buildings, coupled with the increasing adoption of advanced technologies, is leading to the surging adoption of smart thermostats across the residential sector. In 2016, nearly 7.8 million smart thermostats were installed in US homes. And it was likely that around 43 million US residents would adopt the technology by 2021. Furthermore, favorable government regulations & tax credit facilities on the installation of HVAC systems and the mounting focus of people on reducing electricity bills are also contributing to the market growth around the residential sector.
Furthermore, the snowballing need for deploying smart thermostats across various industries, such as food and beverages, chemicals, etc., owing to the rising inclination toward energy & cost-savings and a comfortable ecosystem are the most prominent factors contributing to the increasing demand for smart thermostats across the industrial sector.
Of them all, wireless thermostats are gaining immense popularity since they have greater control over heating. These are digital devices that can offer uninterrupted monitoring of the temperature regardless of their place of installation. Also, they provide accurate readings, which allows consumers to maintain the desired temperatures inside their houses. Moreover, factors like cost-effectiveness, less maintenance, & flexibility are also driving the demand for wireless thermostats.
Smart thermostats working on Wi-Fi technology are more secure than other types, thereby creating profitable opportunities for leading manufacturers. In addition, the adoption of Wi-Fi-enabled smart thermostats is increasing in commercial buildings & smart homes to manage energy consumption levels effectively.
Furthermore, the demand for smart thermostats based on ZigBee technology is projected to witness exceptional growth during 2021-26, primarily due to their low power consumption, high cost-efficiency, & hassle-free implementation.
Recent Developments in the Global Smart Thermostat Market
North America holds the largest share of the Global Smart Thermostat market. The region is witnessing rising adoption of advanced technologies, mounting internet penetration, and mounting adoption of electronic devices. Hence, with the burgeoning usage of virtual assistance devices like Amazon Echo & Google Home at homes, the demand for smart thermostats is projected to boost astronomically in North America.
Canada & the United States are the most prominent contributors to the overall regional market growth, owing to the various smart infrastructural developments in these countries.
Further, Asia-Pacific is expected to witness the fastest market growth in the coming years, mainly due to the mounting adoption of smart assistant devices, rising disposable income, and surge in the construction of smart residential & commercial buildings.
In India, the construction industry is experiencing tremendous growth. To allow the construction industry environmentally sensitive, CII- Sohrabji Godrej Green Business Centre has established the Indian Green Building Council (IGBC) that encourages builders to construct green buildings & effectively use resources. It, in turn, will fuel the construction of smart homes and positively influence the growth of the Smart Thermostat Market in the years to come.
Key Driver: Rising Concerns Regarding Energy Consumption
The increasing concerns over reducing energy consumption levels and promoting environmental protection is the most prominent factor infusing the adoption of smart thermostats. Governments of different countries worldwide are taking various initiatives to control the high energy consumption levels & minimize carbon emissions, i.e., encouraging consumers to deploy smart devices at their homes. In addition to this, Smart thermostats help save electricity costs & reduce energy wastage. Hence, the rising awareness regarding the benefits of smart thermostats is propelling the overall market growth.
Possible Challenge: High Installation Prices of Smart Thermostats
The installation of smart thermostats involves fine-tuning & custom fabrication of parts to eliminate failures, which requires skilled professionals that add up to the overall costs of smart thermostats. Hence, these high costs might pose a prominent challenge to the growth of the Global Smart Thermostat Market during 2021-26.
According to MarkNtel Advisors, the key players with a considerable market share in the Global Smart Thermostats market include 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.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics:
Frequently Asked Questions
A. The Global Smart Thermostat Market is projected to grow at a CAGR of around 19% during 2021-26.
A. The Residential Sector holds the largest share of Global Smart Thermostat Market and is projected to create lucrative growth opportunities for the leading market players in the coming years.
A. Increasing concerns regarding energy consumption and the need to reduce costs associated with it are the key factors expected to drive the Global Smart Thermostat Market during 2021-26.
A. In the coming years, the Global Smart Thermostat Market is expecting considerable growth, owing to the recommencement of production units on account of the upliftment of restrictions by governments worldwide to revive the economy.