Search Market Research Report
Smart Thermostat Market Size, Share Global Analysis Report, 2024 – 2032
Smart Thermostat Market Size, Share, Growth Analysis Report By End-Users (Industrial, Commercial, and Residential), By Installation Types (Retrofit Installation and New Installation), By Connectivity Technologies (Wired Networks and Wireless Networks), By Products (Standalone, Learning, and Connected Smart Thermostats), And By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032
Industry Insights
[229+ Pages Report] According to Facts and Factors, The global smart thermostat market size was valued at USD 3.79 billion in 2023 and is predicted to surpass USD 11.84 billion by the end of 2032. The smart thermostat industry is expected to grow by a CAGR of 13.50% between 2024 and 2032.
Market Overview
Smart thermostats are the devices used to control heating and air conditioning systems for ventilation. These thermostats are more efficient than traditional devices. These devices utilize sensors and Wi-Fi to adapt to the user’s preferences. Users can adjust the parameters like temperature with the help of their smartphone app or web interfaces with a stable internet connection.
The smart thermostat uses machine learning algorithms for their functioning. These thermostats are compatible with smart home systems like Google Assistance, Amazon Alexa, etc which further increase its demand in the market. Users can easily schedule their heating and cooling systems according to their lifestyles.
Key Insights
- As per the analysis shared by our research analyst, the global smart thermostat market size is estimated to grow annually at a CAGR of around 13.50% over the forecast period (2024-2032).
- In terms of revenue, the global smart thermostat market size was valued at around USD 3.79 billion in 2023 and is projected to reach USD 11.84 billion by 2032.
- Growing adoption of smart home technologies is driving the growth of the global smart thermostat market.
- Based on the end-users, the residential segment is growing at a high rate and is projected to dominate the global market.
- Based on the installation types, the new installation segment is projected to swipe the largest market share.
- Based on the connectivity technologies, the wireless networks segment is expected to dominate the global market.
- Based on the products, the learning segment is expected to dominate the global market.
- Based on region, North America is expected to dominate the global market during the forecast period.
Growth Drivers
- Growing adoption of smart home technologies is driving the growth of the global market.
The rising trend of using smart homes is a major reason for the high growth rate of the global smart thermostat market. It is gaining traction among users because of the advancements in IOT technology. These devices offer high-end features like energy usage insights, automated temperature adjustments, and many others, which help people lower their energy consumption.
The growing demand for smart thermostats is largely because of the increasing awareness among people regarding energy efficiency. Governments all across the globe are implementing regulations to promote energy-efficient solutions. These mandates are likely to help governments and businesses lower their overall carbon footprints and save the environment.
Incentives from the government are further expected to encourage people to invest in energy-saving technologies like smart thermostats. All these factors are, therefore, expected to foster growth opportunities in the coming years. For instance, Ecobee came up with a new product to replace its previous flagship model in May 2022. The product is named Ecobee Smart Thermostat Premium, which is well equipped with new features like voice control.
Restraints
- Initial cost is expected to hamper the growth of the global market.
Smart thermostats involve high upfront costs when compared to the traditional thermostat option in the market. This high initial investment is expected to slow down the growth trajectory of the smart thermostat industry during the forecast period. Furthermore, the installation complexity further poses a big challenge in the market. This setup needs technical expertise and professional assistance.
Therefore, the lack of a skilled workforce is another major reason expected to hamper the growth of the industry in the coming years. Compatibility issues with legacy infrastructure further hinder its adoption.
Opportunities
- Technological advancements are expected to foster growth opportunities in the global market.
The ongoing development in sensor technology, data analytics, and connectivity are expected to foster growth opportunities in the global smart thermostat market. These innovations will improve the capabilities and performance of smart thermostats. However, emerging features like geofencing and voice control are expected to further drive the interest of consumers in the devices.
Moreover, the growing demand for comfort and convenience is further paving the way for smart thermostats in the global marketplace. Advanced thermostats offer customization, thereby helping people manage indoor climate conditions. Additionally, people can operate these thermostats via smartphones remotely.
Urbanization and ongoing construction of residential and commercial infrastructure are some of the key reasons for the high demand for smart stats in the market. For instance, Autogrid collaborated with Mysa in September 2022 to come up with utility-scale virtual power plants. The former company is leveraging its VPP platform to offer comprehensive and scalable dispatch solutions.
Challenges
- Privacy and security are a big challenge in the global market.
Smart thermostats gather data regarding user behavior, preferences, and occupancy patterns which pose a huge threat to their personal information. The rising concerns regarding security breaches and data privacy, like unauthorized axes or hacking of connected devices, are a big challenge in the smart thermostat industry.
Segmentation Analysis
The global smart thermostat market can be segmented into end-users, installation types, connectivity technologies, products, and regions.
On the basis of end-users, the market can be segmented into industrial, commercial, and residential. The residential segment accounts for the largest share of the smart thermostat industry. Homeowners are increasingly adopting smart thermostats because of their high-end features like energy efficiency, convenience, and comfort.
Moreover, the integration of the smart thermostat with home ecosystem devices is making it an attractive choice among residential consumers. People can remotely set the temperature which in turn is also appealing to consumers.
Moreover, government initiatives are likely to play an important role in promoting the smart thermostat. These devices help people lower their energy consumption and utility bills, thereby helping in cost optimization. All these factors are likely to foster growth opportunities in the segment in the forthcoming years.
On the basis of installation, the market can be segmented into retrofit installation and new installation. The new installation segment is expected to swipe the largest revenue in the global smart thermostat market. The growing popularity of smartphone devices is one of the major reasons for the high growth rate of the segment.
The new homeowners are inclined towards smart technologies like smart thermostats for energy-efficient and convenient solutions. Governments in many regions have launched regulations on installing energy efficiency solutions in new construction, which is another major reason positively impacting the growth trajectory of the segment. Furthermore, the advancements in home automation are also driving huge growth in the segment.
On the basis of connectivity technology, the market can be segmented into wired networks and wireless networks. Wireless network is the fastest growing segment in the smart thermostat industry during the forecast period. Wireless network connectivity eliminates the requirement of physical wiring between different devices. It helped people with flexibility in placements and installations, which is a major factor in the high growth rate of the segment.
Moreover, the wireless thermostat integrates with smart home platforms easily and offers the convenience of controlling their heating and cooling system remotely over an internet connection via voice commands or smartphone apps. This compatibility attracts tech-savvy consumers. The advancements in wireless technologies like Zigbee and Wi-Fi also enhance the data transmission speed and reliability of wireless smart thermostats which will further drive the growth of the segment.
On the basis of products, the market can be segmented into standalone, learning, and connected smart thermostats. The learning segment is likely to dominate the global smart thermostat market in the forthcoming years. Traditional programmable thermostats were difficult to use and required manual adjustments. These thermostats improve energy efficiency by analyzing the environmental conditions for optimal comfort.
However, it also helps end users lower their energy consumption. Moreover, the technological advancements in machine learning and AI algorithms also enhance their adaptability and performance, which further attracts the end users. These thermostats help offer a personalized experience by adapting to one's preferences, habits, and schedules, thereby boosting their demand.
Report Scope
Report Attribute |
Details |
Market Size in 2023 |
USD 3.79 Billion |
Projected Market Size in 2032 |
USD 11.84 Billion |
CAGR Growth Rate |
13.50% CAGR |
Base Year |
2023 |
Forecast Years |
2024-2032 |
Key Market Players |
Nest Labs, Ecobee, Honeywell, Johnson Controls, Emerson Electric Co., Tado, Carrier, Lennox International Inc., Bosch Thermotechnology, EcoFactor, and Others. |
Key Segment |
By End-Users, By Installation Types, By Connectivity Technologies, By Products, and By Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Regional Analysis
- North America to dominate the global market.
North America is the largest share of the global smart thermostat market during the forecast period. The United States and Canada are at the forefront of adopting smart home technologies. People in the region are looking forward to a convenient energy-efficient solution to control their cooling and heating system, which is a major reason for the high growth rate of the regional market.
Furthermore, smart thermostats help people with energy usage insights and learning capabilities, which further assist users in controlling the thermostat according to their schedules and preferences. Moreover, the competitive landscape in the region is very strong because of the presence of prominent market players in the market. An increasing number of companies are coming up with a range of smart features that cater to the growing requirements of people.
Asia Pacific will be the fastest-growing segment in the smart thermostat industry in the coming years. Rapid urbanization is another reason for the high demand for energy-efficient solutions. The fast-growing middle-class population in the region is another major reason for the high growth rate of the regional market.
Additionally, the rising disposable income of the people in this region is further contributing towards the high growth of the regional market. Countries like Korea, Japan, India, China, and other South Asian regions are facing high demand for smart thermostats. Governments in the region are promoting energy-efficient solutions as a part of their sustainable development agenda.
Moreover, the government is offering incentives and subsidies to encourage the adoption of sustainable solutions like smart thermostats. Therefore, such a landscape is expected to foster growth opportunities in the regional market during the forecast period. For instance, Voltus Inc. said to partner with Resideo and Google Nest in April 2022. Their partnership led to the development of the first-ever bring-your-own thermostat program.
Competitive Analysis
The key players in the global smart thermostat market include:
- Nest Labs
- Ecobee
- Honeywell
- Johnson Controls
- Emerson Electric Co.
- Tado
- Carrier
- Lennox International Inc.
- Bosch Thermotechnology
- EcoFactor
For instance, Aqara came up with its new product, Radiator thermostat E1, in September 2022. It assists in automating the hydronic radiator, thereby offering improved energy comfort and efficiency.
The global smart thermostat market is segmented as follows:
By End-Users Segment Analysis
- Industrial
- Commercial
- Residential
By Installation Types Segment Analysis
- Retrofit Installation
- New Installation
By Connectivity Technologies Segment Analysis
- Wired Networks
- Wireless Networks
By Products Segment Analysis
- Standalone
- Learning
- Connected Smart Thermostats
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- Nest Labs
- Ecobee
- Honeywell
- Johnson Controls
- Emerson Electric Co.
- Tado
- Carrier
- Lennox International Inc.
- Bosch Thermotechnology
- EcoFactor
Copyright © 2023 - 2024, All Rights Reserved, Facts and Factors