Global Smart Thermostat Market is Segmented By Technology (Wired Technology, Wireless Technology (Wi-Fi, Bluetooth, Zig Bee, Z Wave)), By Components (Temperature Sensors, Heat Sensors, Humidity Sensors, Display and others), By Application (Residential Applications, Industrial Applications, Commercial Applications), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
The Global "Smart Thermostat Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Smart Thermostats are thermostats equipped with additional features like Wi-Fi connectivity, sensors, and voice assistance features which are used in controlling the temperature and air-conditioning of a building or an industry.
Smart Thermostats are connected to IoT-enabled devices like smartphones, tablets, smartwatches, and laptops which allow the user to control the temperature from any part of the room via their devices. Smart Thermostats consist of different sensors like temperature sensors and humidity sensors which help in conveying important information such as temperature and humidity of the room to the user via an inbuilt display.
Concerns over energy savings, increase in customers preferring smart home solutions, rising sales of smart home products such as Google Home and Amazon Echo, and demand for connected and IoT devices are the major factors responsible for the growth of the global smart thermostat market.
Concerns over energy savings are a significant factor propelling the growth of the global smart thermostat market. Rising energy prices are posing a significant problem for the population and are adopting home automation solutions in reducing the overall spendings on energy.
According to the Global Energy Statistical Yearbook 2018, the total power consumption accelerated in 2017 with a growth rate of +2.6%. The global power consumption in 2017 was 21,742 terra watt-hours compared to 21,190 terra watt-hours in 2016 and 20,937 terra watt-hours in 2015. Owing to these reasons, concerns over energy savings are a significant factor driving the growth of the global smart thermostat market.
However, lack of awareness about smart thermostats, high prices of smart thermostat devices, and privacy and security concerns over connected devices are the crucial factors impeding the growth of the global smart thermostat market.
Privacy and security issues of IoT connected devices are a significant concern for consumers owing to data’s vulnerability to security attacks by hackers.
According to the Broadband Internet Technical Advisory Group (BITGA), the considerable concerns of privacy issues amongst IoT connected devices are security vulnerabilities, insecure communications, unauthenticated communications, unencrypted communications, lack of mutual authentication, lack of network isolation, data leaks from the cloud, and data leaks from and between the devices.
Owing to these reasons, security and privacy concerns of IoT-connected devices is an essential factor impeding the growth of the global smart thermostats market.
Based on the type of technology, the market is segmented as wired and wireless technology. The wireless technology is further segmented into Wi-Fi, Bluetooth, and Z-Wave. Wi-Fi is the dominant segment of the global Smart Thermostat market owing to its unique advantages like affordable performance, unlicensed spectrum operation, ease of use, self-deployment, and long-term compatibility.
According to the Wi-Fi Alliance, the global economic market of Wi-Fi is estimated at USD 1.96 trillion. There are 340.8 million Wi-Fi hotspots across the world of which 12.2 million are commercially managed, and 328 million are community access points. Owing to the dominance of Wi-Fi networks, consumers widely prefer Wi-Fi-based products, and the Wi-Fi technology of the smart thermostats is anticipated to dominate the global smart thermostat market.
Based on the application, the market is segmented as residential applications, industrial applications, and commercial applications. Residential uses are the dominant segment of the global smart thermostat market owing to the increasing demand for smart thermostat devices in home automation and smart home solutions.
The growing need for smart homes, connected devices, and raising awareness of power consumption savings are the primary aspects driving the dominance of residential application of smart thermostat devices.
Smart thermostats are widely used in homes to control the air-conditioning and temperature of the house with the help of laptops, smartphones, and tablets. Increasing penetration of smartphones and tablets coupled with growing per capita incomes are the critical aspects driving the global are encouraging consumers to install smart thermostat devices in their homes and owing to these factors, the residential applications sector is anticipated to drive the global smart thermostat market in the future.
The Global Smart Thermostat Market is segmented into North America, Europe, Asia Pacific, South America, and Middle East, and Africa.
The North America region is further segmented into the following areas as the U.S, Canada, and Mexico.
The US is the dominant segment of the global smart thermostat market owing to the increasing sales of smart devices, and IoT-enabled devices in the US. Factors such as high disposal incomes, high technology adoption rate, and the high penetration rate of smart home solutions in the US are other significant factors contributing to the growth of the global smart thermostat market.
According to a research study, The United States Smart Home market generated the highest market revenue in 2019 amounting to USD 23,556 million in 2018 compared to USD 17655 million in 2017.
More than 42.2 million homes are equipped with smart home solutions as of now in 2019, and the average revenue per installed home amounts to USD 186.55. Owing to these factors, the North American region is the dominant segment of the global smart thermostats market.
Some of the major players in this market incorporate competitive strategies like mergers and acquisitions to retain their market competitiveness. For instance, in February 2019, Emerson Electric Company completed the acquisition of General Electric’s Intelligent Platform business which will enable Emerson to expand its capabilities in machine control and discrete applications.
New product launches and expansion of facilities are some other vital strategies adopted by most of the companies to contribute to the growth of the company and improve their market growth rate.
For instance, in November 2018, Nest Inc., its European thermostat line to bring energy savings to more European homes with the introduction of Nest Thermostat E. Furthermore, in October 2018, Carrier Corporation launched the new Cor 5C and 7C thermostats compatible with google assistant which allows customers to control home comfort with their voice.
The report profiles the following companies – Nest Labs Inc, Schneider Electric, Siemens Corporation, Honeywell International, Carrier Corporation, Nortek Inc, Lennox International Inc, Ecobee Company, Texas Instruments, and Emerson Electric.