Home Technology Smart Thermostat Market Size, Top Trend, Growth to 2030

Smart Thermostat Market

Smart Thermostat Market Size, Share & Trends Analysis Report By Technology (Wi-Fi, Bluetooth, Zigbee, Others), By Application (Air Conditioning, Heating, Ventilation), By End-User (Residential, Commercial, Industrial, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Report Code: SRTE2382DR
Study Period 2018-2030 CAGR 28.2%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 4.2 Billion
Forecast Year 2030 Forecast Year Market Size USD 40 Billion
Largest Market North America Fastest Growing Market Asia Pacific
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global smart thermostat market size was worth USD 4.2 billion in 2021. It is projected to reach USD 40 billion by 2030, growing at a CAGR of 28.2% during the forecast period (2022–2030). 

An electronic device called a smart thermostat, often called a communicative or connected thermostat, allows for establishing preset and automatic temperature settings based on the weather, heating and cooling requirements, and daily schedules. A smart thermostat can pick up on patterns in its environment, conserving energy used by heating and cooling systems. For example, a smart thermostat in the home studies the occupants' behavior patterns and modifies the heating and cooling system accordingly. As a result, it uses fewer heating and cooling systems while the house is vacant for an extended time.

Additionally, smart thermostats can be controlled by any internet-capable device, including a phone, tablet, smart speaker, or another electronic gadget. Some smart thermostats can diagnose any ducting or HVAC system issues. Rapid IoT and A.I. technology acceptance, increased use of smart technology in medical monitoring, and adoption of smart infrastructure in residential and commercial infrastructure all impact market growth.

Market Dynamics

Global Smart Thermostat Market Drivers

Rapid Deployment of Smart Infrastructure in Residential and Commercial Sectors

With an emphasis on smart cities, where linked technologies and Internet of Things (IoT) solutions are used to improve critical infrastructure, public safety, city lighting, energy efficiency, traffic flow, and traffic congestion, society is continuing to become more urbanized. The objective is to improve urban living, working, and recreational environments while reducing cities' carbon footprints. To live up to its name, a smart city must employ technology to promote long-term growth. Technology must increase resource efficiency while promoting responsible decision-making by the public and government.

Market analysts predict that the US smart thermostat market share will rise from 16.1% in 2020 to 17.5% in 2028. This element covers buildings and companies owned by the city, institutions of higher learning, medical facilities, charities, and private citizens. Sensor technologies, behavioral economics, and gamification will probably be needed to address this element, change the physical infrastructure, and promote wise resource allocation. These cities might begin implementing technologies that use algorithms and sensors and gradually increase heating and cooling efficiency to become more energy-efficient. As a result, it might directly influence the market expansion.

Advancements in Temperature Regulation Appliances and Adoption of Automated Systems

The market for smart thermostats is predicted to grow profitably as automation technology usage increases in the residential, commercial, and industrial sectors. The implementation of smart thermostats for autonomous climate management is anticipated to increase as the trend for smart homes in the residential industry grows. Furthermore, the market's growth is expected to be boosted by adopting energy-efficient technology.

Global Smart Thermostat Market Restraint

High Cost of Products in Developing Countries

High investments are needed for modernized control systems and advanced connected thermostats. Small and medium-sized enterprises (SMEs) may find it challenging to enter the market. Additionally, individuals with limited purchasing power might have trouble paying the price. For instance, a December 2020 analysis by Brinks Home found that smart thermostats typically pay for themselves after two years of installation. They save 15% on cooling expenditures and 11% on heating costs. However, the initial cost can be four times higher than a typical thermostat.

Additionally, utilizing the touchscreen display panel and learning the software may be difficult. Not everyone who dislikes reading manuals and figuring out all the buttons and software may appreciate using this product. The user could not experience savings if the device is not correctly installed and set. Therefore, it is anticipated that the high cost of manufacturing, the difficulty of installation, and the different compatibility requirements will restrain the growth of the global smart thermostat market.

Global Smart Thermostat Market Opportunities

Increased Demand for Self-Learning Devices

Automatic functionality is necessary for end-users as it saves time and is more convenient. Therefore, self-learning energy-saving technology is growing in popularity to reduce energy use. Smart thermostats' self-learning mode and remote control functionality make them perfect for home and business applications. Market participants may have the opportunity to increase their residential share due to the growing use of these self-learning devices in residential applications. The elderly will be able to operate HVAC equipment with the help of self-learning devices without having to cope with challenging programming.

Regional Analysis

Region-wise, the global smart thermostat market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Exceeds the Rest of the World

Due to the rising demand for solutions to manage energy consumption and the extensive distribution network of leading suppliers in the region, North America is anticipated to dominate the global smart thermostat market share. One of the main factors driving market expansion is the rising average unit rate of power, encouraging household customers, businesses, and initiatives to embrace smart energy solutions.

Asia-Pacific is the fastest-growing region. A large portion of the world's population resides in Asia-Pacific. The smart thermostat market share in this region is anticipated to grow as smartphones and other electronic products become more popular in the residential, commercial, and industrial sectors. Due to technological developments, household goods like refrigerators, heating and cooling systems, and washing machines are becoming more intelligent. They can therefore connect to the internet as a result. Consequently, it is projected that all of these variables will promote market expansion.

Europe is the second-largest region, driven by supportive regional government policies. For instance, to lower Britain's energy usage and promote financial improvements for homes toward energy efficiency, the Department of Energy & Climate Change in the UK created the Energy Company Obligation (ECO) in January 2013.

Report Scope

Report Metric Details
Segmentations
By Technology
  1. Wi-Fi
  2. Bluetooth
  3. Zigbee
  4. Others
By Application
  1. Air Conditioning
  2. Heating
  3. Ventilation
By End-User
  1. Residential
  2. Commercial
  3. Industrial
  4. Others
Company Profiles Emerson Electric Co Ecobee Inc Honeywell International Inc Johnson Controls Nest Labs Inc Control4 Corporation Schnieder Electric SE Tado GmbH Nortek Inc Ingersoll Rand plc
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global smart thermostat market is segmented by technology, application, end-user, and region. 

By technology, the global market is segmented into Wi-Fi, Bluetooth, Zigbee, and Others.

The Wi-Fi segment is the highest contributor to the market and is estimated to grow at a significant CAGR over the forecast period. A surge in internet penetration fuels the growth of the Wi-Fi segment, thereby enhancing the global smart thermostat market growth.

By application, the global market is segmented into Air Conditioning, Heating, and Ventilation.

The Heating segment is the highest contributor to the market and is estimated to grow at a CAGR of 26.7% over the forecast period. The Air Conditioning segment is the fastest growing. 

By end-user, the global market is segmented into residential, Commercial, Industrial, and Others.

The Residential segment is the highest contributor to the market and is estimated to grow at a CAGR of 26.9% over the forecast period. The adoption of energy-efficient HVAC controls like smart thermostats has been fueled by the rising awareness of energy conservation, efficiency, and environmental protection. They aid in maximizing energy efficiency and preserving the coziest and healthful interior atmosphere. The residential vertical has also grown due to favorable government laws, tax credit facilities for installing HVAC systems, and end-users increasing focus on lowering electricity bills.

Market Size By Technology

Recent Developments

  • June 2022 - Global industrial software and technology leader Emerson announced a multi-year strategic framework agreement with BayoTech, an innovator in hydrogen solutions, to accelerate hydrogen delivery worldwide. Emerson will deliver advanced automation technologies, software, and products to enable BayoTech to build hundreds of hydrogen units to produce cleaner, lower-cost hydrogen.
  • June 2022 - Emerson was selected by Albioma (PAR: ABIO), a French independent energy provider, to help transition its coal-fired Bois Rouge plant to 100% renewable energy. As part of Albioma's more comprehensive mission to transition all of its existing fossil fuel plants to renewable energy, Emerson's automation systems and software will enable the coal-fired power station to convert to biomass feedstock.

Top Key Players

Emerson Electric Co Ecobee Inc Honeywell International Inc Johnson Controls Nest Labs Inc Control4 Corporation Schnieder Electric SE Tado GmbH Nortek Inc Ingersoll Rand plc Others

Frequently Asked Questions (FAQs)

What is the growth rate for the smart thermostat market?
Smart thermostat market size will grow at approx. CAGR of 28.2% during the forecast period.
Some of the top industry players in global market are, Emerson Electric Co, Ecobee Inc, Honeywell International Inc, Johnson Controls, Nest Labs Inc, Control4 Corporation, Schnieder Electric SE, Tado GmbH, Nortek Inc, Ingersoll Rand plc, etc.
In the smart thermostat market, North America has established itself as the market leader with a significant market share.
The smart thermostat market has seen the most substantial growth rate in Asia Pacific.
The global market report is segmented as follows: By Technology, By Application, By End-User


We are featured on :