The smart AC controller market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa, out of which, North America is expected to boom with notable growth by registering a CAGR of 25.0% over the forecast period. U.S. is the major contributor behind the growth of North America smart AC controller market. U.S. smart AC controller market accounted for a highest market share of 97.0% in 2017 and further, is expected to behold its dominant stance by the end of 2025.
Europe smart AC controller market is projected to cross USD 574 Million by the end of 2025 and is expected to mark 27.1% growth rate in 2018. The Russia smart AC controller accounted for a market share of 28.7% in 2017 and further, is anticipated to cross USD 95 Million by the end of 2025, whereas, Italy smart AC controller market accounted for a market share of 13.3% in 2017 and further, is expected to increase to a market share of 17.2% by the end of 2025.
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Smart AC controller is an electronic device which can monitor, control and automate the air conditioner’s output/ temperature and heat pump via smart application through smartphone by communicating through Wi-Fi, infrared radiations or Bluetooth. The different components of AC controller system are thermostat, network and monitoring & controlling devices. The thermostat is an electronic component which can sense, control and automate the temperature, whereas, the network consists of the communication of digital signals through different channels such as Wi-Fi, IR and Bluetooth. The monitoring and controlling devices include smartphones, tablets and laptops that are used for real time monitoring and controlling. Factors such as increasing disposable income coupled with evolving lifestyle of the consumers are projected to accelerate the growth of the smart AC controller market with a CAGR of 26.0% during 2018-2025. Additionally, rapid economic growth has led to a considerable increase in the size of the middle class and the household incomes resulting in higher disposable incomes. Further, this factor is expected to increase the growth of smart AC controller market by reaching USD 8,770.1 Million by the end of 2025 from USD 1,361.7 Million in 2017.
The smart AC controller market has been segmented by connectivity into IR, IR + Bluetooth and others. IR segment accounted for the dominant market share of around 38%, closely trailed by IR + Bluetooth segment during 2017. Further, the IR segment is expected to grow at a CAGR of 23.1% over the forecast period. Moreover, the IR smart AC controller segment is expected to achieve Y-o-Y growth rate of 21.7% in 2025 as compared to previous year.
The smart AC controller market is segmented by application into split AC, window AC, portable AC and others. The split AC segment in smart AC controller market accounted for the largest share of around 63% during 2017 and is further projected to garner significant market valuation by the end of 2025 by expanding at a CAGR of 25.9% over the forecast period. Moreover, the split AC segment is expected to achieve Y-o-Y growth rate of 24.6% in 2025 as compared to the previous year.
By Distribution Channel
The smart AC controller market is segmented by distribution channel into online and offline stores. Among these segments, the offline segment held the largest market share of around 68% during 2017. In U.S., the offline segment is anticipated to achieve absolute $ opportunity of USD 447.1 Million between 2018 and 2025, whereas the online segment is expected to grow at a highest CAGR of 30.6%, in terms of market value over the forecast period.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
The smart AC controller market is thriving on the back of rising disposable income coupled with evolving lifestyle of the consumers around the globe. The rapid economic growth has led to a considerable increase in the size of the middle class and the increasing household incomes resulting in higher disposable incomes which has further made the consumers to feel financially stable and confident about both the overall condition of the economy and about their personal financial future which drives them to purchase comfortable and luxurious consumer goods.
Additionally, rapid technology advancement coupled with the increasing acceptance of the consumers owing to the useful features of the smart AC controllers that are designed to make household life easier is anticipated to accelerate the growth of the smart ac controller market in near future.
The high cost of smart AC is one of the major factors which are hindering the growth of the smart AC controller market. Further, the availability of counterpart products in market and consumers’ inclination towards cost efficient smart AC controllers is negatively impacting the growth of the global smart AC controller market
Factors such as presence of cheaper alternatives with less initial manufacturing cost are further anticipated to slow down the growth of the smart AC controller market over the forecast period.
Some of the affluent industry leaders in the smart AC controller market are tado° GmbH, Sensibo, Thinkeco Inc., Flair Smart Vent, Ambi Labs, Honeywell International Inc., Nest Labs, LG Electronics, Ecobee, Carrier Corporation and Intesis Software S.L.U.
Tado GmbH develops home climate control systems, where the company’s solutions specialize in increasing the operating efficiency of home and apartment climate control systems. It offers connected cooling control via an app or using geo fenced automations that turn the AC on and off as you come and go.
Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality R&D to develop highly engineered and innovative technologies in order to gain competitive edge in the smart AC controller market.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.