Southeast Asia Smart Thermostat Market Research Report: Forecast (2024-2030)

Market Definition

A smart thermostat is a digitally programmable system that remotely controls the heating & cooling within buildings, including commercial offices, residential apartments & industries. These systems help the consumers to adjust the temperature settings within the premises based on their preferences.

Market Insights & Analysis: Southeast Asia Smart Thermostat Market (2024-30):

The Southeast Asia Smart Thermostat Market size is valued at USD 275 million in 2023 & is estimated to reach USD 752 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 16.54% during the forecast period, i.e., 2024-30. The factors attributing to the surge in the demand for the smart thermostat are a rising inclination towards energy-conservation & management systems, a growing focus towards economically viable energy solutions, rising home automation, and the development of smart commercial as well as industrial buildings.

The geographical location, i.e., the presence of the sea around the region, creates a humid environment for the countries. Based on the statistics by the World Bank Climate Change Knowledge Portal, precipitation in Jakarta varies from 61% to around 95%. Similar to this, the average annual percentage of humidity is around 78% in Vietnam. This higher presence of moisture in the air causes dehydration, heat exhaustion, and other respiratory problems among the inhabitants. Therefore, the consumers in the region tend to install thermostat humidifiers within the buildings to maintain optimum humidity indoors, supporting the Southeast Asia Smart Thermostat Market.

Moreover, Southeast Asian countries, like Indonesia, Vietnam & Singapore rely heavily on imported oil for power generation. As per the statistics by the International Energy Agency, almost 61% of the electricity produced in Indonesia is due to coal-fired power plants. Similarly, other nations, like the Philippines, Thailand, etc., also use coal, oil & natural gas. These countries majorly import commodities, like coal & crude oil from the Middle Eastern nations & the US. Therefore, the disruption in the supply chain caused due to geopolitical tensions and currency devaluation is hampering the oil flow within these nations and leading to an energy crisis. Thus, to eradicate these emerging power issues, customers are increasingly looking for energy-conserving solutions, like smart thermostats, thus uplifting market growth.

Additionally, the electricity tariff in the Southeast Asian countries is increasing substantially. For instance, in 2023, the Vietnamese Government increased the price of electricity for commercial end users by 4.5% as compared to 2022. Similar to this, the Indonesian government also increased the electricity tariff from 17.6% to 36.6% for commercial buildings & medium households. This is resulting in higher utility bills for the customers, including industrial as well as commercial. Therefore, the different industry verticals are incorporating solutions, like a smart thermostat that helps in consistent monitoring of the appliances & results in power saving, thus aiding in enhancing the market size in the future years.

Southeast Asia Smart Thermostat Market Driver:

Rising Rate of Smart Home Automation – In recent years, the inhabitants in the region have been inclined towards home automation systems, including smart thermostats, next-generation lighting, etc., since they help in providing remote monitoring, improving security, and enlightening home aesthetics. Based on the survey conducted by the company, almost 77% of consumers across the region have embraced smart home devices to improve their living standards.

Additionally, the number of working professionals in Southeast Asian countries is also increasing. As per the Ministry of Manpower, in 2022, the employment rate in Singapore reached approximately 67.5%, an increase of about 2% to 3% compared to the pre-pandemic period. These working professionals stay approximately 8-10 hours in the office or outdoor location. Therefore, they require solutions, that help them to monitor and operate the home appliances even via their smartphones. Thus, the working population in Southeast Asia is increasingly installing these systems in their residential apartments, enlarging the Southeast Asia Smart Thermostat Market size.

Southeast Asia Smart Thermostat Market Opportunity:

Government Initiatives for Establishing Smart Manufacturing Facilities – Official administrative authorities in the region are increasingly focusing on developing highly advanced factories to increase production output and streamline the entire manufacturing process. Both public as well as private entities are providing substantial funds & incentives to modernize and upgrade the infrastructure of the industries and facilitate the adoption of next-generation technology. For instance, in 2024, GE Aerospace Singapore, invested around USD 11 million to transform its aircraft engine repair facility into a smart factory. The company would incorporate technologies, like smart communication systems, and temperature optimizing systems, i.e., smart thermostats, to revolutionize its production process and provide faster outputs.

Further, Southeast Asian nations have relatively low labor costs compared to European & North American nations. According to Pinas Hardware, a leading hardware provider in the Philippines, the average labor cost in the country is about USD 8.60 to 13.76 per day, whereas the average labor cost in the US is approximately USD 43. Therefore, more companies would establish their production facilities, accentuating the demand for smart thermostats in the forthcoming years.

Southeast Asia Smart Thermostat Market Challenge:

Complex Integration & Installation – Smart Thermostats are made up of components, including sensors & communication systems, which are complex to integrate into old & conventional buildings. Moreover, incorporating these products within the buildings requires technical expertise to handle the software & digital technologies essential for the installation. This acts as an overhead cost for the building owners. Therefore, consumers with limited financial resources are apprehensive about using these solutions and they prefer the manual HVAC systems.

Along with this, these systems rely on the internet connection for their proper functioning. Without the high internet speed, these systems often encounter glitches and cause inconvenience to the customer. Therefore, internet connectivity issues in the rural areas of the country like Vietnam, Thailand, etc., limit the adoption of these systems within the residential & industrial units in the region and adversely impact the market growth.

Southeast Asia Smart Thermostat Market (2024-30): Segmentation Analysis

The Southeast Asia Smart Thermostat Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the regional level. As per the analysis, the market has been further classified as:

Based on Product Type:

• Motion Sensor Thermostat
• Geofencing Thermostat
• Learning Algorithm Thermostat

Motion Sensor Thermostat holds a prominent share in the Southeast Asia Smart Thermostat Market. This type of thermostat uses occupancy sensors that help detect the number of individuals in the room or building and adjust the temperature automatically. This thermostat turns off or lowers the temperature when the occupants in the room are not present or sleeping. This helps conserve more power and lowers the electricity bill, making it a preferable choice for large-scale industrial settings.

Furthermore, there is a rising culture of keeping pets in the region. As per the statistics, in Singapore around 1,14,000 dogs are kept as pets in residences. Therefore, consumers who keep pets require solutions that can automatically change the setting based on both human & pet needs. This thermostat uses passive infrared (PIR) sensors that help distinguish between pets & humans and adjust the room setting based on their presence, making it more convenient for the end-users to leave their pets at home.

Based on End Users:

• Residential
• Industrial
• Commercial
• Hospitality
• Education
• Government
• Healthcare
• Others

Hospitality holds a notable market share in the Southeast Asia Smart Thermostat Market. Hotels & Cafes essentially require the HVACs within the premises to provide comfort to the travelers. However, travelers often tend to turn off the appliances of their designated rooms when they go out during the day, leading to higher power consumption. Therefore, to conserve power resources, the hospitality sector is actively installing these smart thermostats, enhancing market growth.

Further, Southeast Asian nations are emerging as popular tourist hotspots due to the prevalence of museums, beaches, art galleries, and leisure attractions. As per the United Nations World Tourism Organization, Thailand welcomed around 11.07 million international tourists in 2022, a surge of around 10 million travelers compared to 2021. This surge in inbound tourism is accentuating the demand for accommodation facilities in the region. As a result, several hotel groups are constructing new hotels, cafes & restaurants, which would continue to generate the demand for smart thermostats, enlarging market size in the forthcoming years.

Southeast Asia Smart Thermostat Market (2024-30): Regional Projection

Geographically, the Southeast Asia Smart Thermostat Market expands across:

• Indonesia
• Vietnam
• Malaysia
• Singapore
• Thailand
• The Philippines
• Rest of Southeast Asia

Indonesia holds a noteworthy share in the Southeast Asia Smart Thermostat Market. The country has a higher number of commercial buildings, residential apartments, and industrial units, which require adequate cooling management solutions. Thus, there is a need for smart thermostats in the country. Indonesia’s governing authorities are reforming corporate taxes and laying policies, easing the business environment in the country. As a result, several foreign giants are entering the country and setting up their commercial offices.

These buildings are high-rise and comprise several floors & rooms, which have different cooling requirements. Conventional cooling solutions tend to centralize the temperature in the entire building, which results in unnecessary power consumption. Thus, to provide cooling only when and where needed, the commercial buildings in the nation are using smart thermostats, amplifying Indonesia’s Smart Thermostat market.

Southeast Asia Smart Thermostat Industry Recent Development:

• 2023: Resideo Technologies, Inc., launched a new smart thermostat with complete indoor air quality & comfort control features.
• 2023: Schneider Electric SE, introduced a new sustainable home energy management solution comprising smart thermostats that offers energy savings & energy independence.

Gain a Competitive Edge with Our Southeast Asia Smart Thermostat Market Report

• Southeast Asia Smart Thermostat Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Southeast Asia Smart Thermostat Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.