Smart Thermostat Market Size & Share, by Type (Conventional, Network-abled); Connectivity (Wireless, Wired); Product (Connected, Learning, Standalone); Application (Climate Control, Water Heating) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5030
  • Published Date: Jun 14, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Smart Thermostat market size is anticipated to reach USD 16 Billion by the end of 2035, growing at a CAGR of 20% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of smart thermostat was around USD 3 Billion. The popularity of smart thermostats has increased owing to the rising trend of HVAC controls across the globe. The HVAC industry generated a revenue of USD 17 Billion in 2022 and is poised to grow and reach USD 30 Billion by 2028.

A smart thermostat is an advanced product that monitors the temperature of space inside a building or a home and maintains a constant temperature. These devices are very much beneficial in heating up and cooling down the temperature as per the requirement while maintaining energy-saving measures. The demand for advanced solutions for a leisure lifestyle and enhanced comfort is also growing. This factor is anticipated to promote the need for smart thermostats in the upcoming years.


Smart Thermostat Market.PNG
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Smart Thermostat Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Trend of Smart Homes – The utilization rate of smart thermostats is attributed to an increase owing to the rising number of smart homes across the world. Rising living standards and smart homes have significantly increased the demand for automatic heating and cooling systems for devices and room temperature. By the end of 2022, the count of smart homes worldwide surpassed around 308 million and is projected to increase by nearly 670 million smart homes throughout the world by 2025.
  • Increase Use of Smart Devices – With the growing spending capacity, people have been adopting smart home devices and building automation systems. This factor is anticipated to accelerate the demand for smart thermostats and further boost the market value in the coming years. In 2022, almost 57 million households living in the United States were using smart home devices. This number is subsequently forecasted to reach almost 65 million households by the end of 2025.
  • Drastic Global Climate Change – Rapid industrialization has led to massive carbon emissions which have resulted in the problem of climate change within the past few decades. Therefore, with the rising temperature and unpredictability of the weather residential, thermostats are expected to become a utility and help in the expansion of the smart thermostat market size during the projected timeframe. The National Oceanic and Atmospheric Administration (NOAA) stated that the temperature of ocean and land has increased at an average rate of 0.14 degrees Fahrenheit per decade since 1880.
  • Emergence of the Latest IoT-enabled Thermostats – IoT-integrated, as well as Wi-Fi-enabled smart thermostats, are gaining popularity owing to their ability to automatically modify temperature after observing, monitoring, and studying the user settings and preferences. Thus, this trend is poised to bring favorable opportunities for market growth shortly.

Challenges

  • High Initial Investment and Installation Costs – Hefty amounts of money are required to develop advanced smart thermostats. Also, skilled professionals are required for the installation of smart thermostats. These factors couple up to increase the overall cost of smart thermostats which makes it difficult for populations with middle and small income to adopt smart thermostats and subsequently hamper the market growth in the longer run.
  • Lack of Technology Awareness
  • Increased Maintenance Costs for Upgradation of Existing Systems

Smart Thermostat Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 20%

Base Year Market Size (2022)

~ USD 3 Billion

Forecast Year Market Size (2035)

~ USD 16 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Smart Thermostat Segmentation

Connectivity (Wireless, Wired)

The wireless segment is estimated to hold over 58% share of the global smart thermostat market by 2035. The main reason for the segment development is the connection of smart thermostats and devices which improves the performance of energy and cost saving. Moreover, wireless smart thermostat enables the controlling and monitoring of systems through IoT devices which makes them easy to use.

Application (Climate Control, Water Heating, Others)

The rising adoption of climate control devices in the residential sector is attributed to the dominance of the climate control segment over others with a market value of 42%. The main reason for the segment growth is the rising preference for a leisure lifestyle and the growing spending capacity of the global population for such smart devices to control the temperature and climate of a space. Furthermore, the extreme weather conditions, the residents upgrade their residential infrastructure in terms of enhanced heating and cooling systems such as air conditioners, furnaces, storage water heaters, and others. In the United States, the total shipments of gas-warm air furnaces reached approximately 379,295 units in December 2020. Whereas, the worldwide demand for room air conditioners grossed nearly 96.5 million units in 2021.

Our in-depth analysis of the global market includes the following segments:

     Type

  • Conventional
  • Network-abled Product

     Connectivity

  • Wireless
  • Wired

     End Use

  • Connected
  • Learning
  • Standalone

     Application

  • Climate Control
  • Water Heating
  • Others

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Smart Thermostat Industry Regional Synopsis

APAC Market Analysis

The revenue generation of the Asia Pacific smart thermostat market is poised to be the largest and holds a market share of 35% by the end of 2035. The growth of the market is the burgeoning population demanding efficient and eco-friendly climate control solutions in the region. Furthermore, the presence of stringent rules and regulations by the regulatory bodies of India, China, and Japan to reduce power consumption and conserve energy is anticipated to create a positive outlook for market growth during the forecast timeline.

North American Market Forecast

The market share of the North American smart thermostat market is projected to grow with a steady CAGR value and garner a 28% share by the end of the forecasted period. The rapid urbanization and industrialization in the region are estimated to bring opportunities for the utilization of smart thermostats. In addition, the growing disposable income of Americans and the technological advancement in the home automation system is anticipated to bring in lucrative growth opportunities for the market size growth in the region.

Research Nester
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Companies Dominating the Smart Thermostat Landscape

top-features-companies
    • Google Nest (Google LLC)
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ecobee, Inc.
    • Honeywell International Inc.
    • Emerson Electric Co.
    • Tado GmbH
    • Ingersoll Rand
    • Nortek (NTK Holdings, Inc.)
    • Schneider Electric SE
    • Carrier Global Corporation
    • Control4 Corporation (Snap One, LLC)

In-the-news

In The News

  • Google Nest, a subsidiary of Google LLC is now adding new features to Nest Thermostat. The new Matter support will enable the owners to adjust temperatures and control the basic features of their thermostats across Matter-compatible smart home platforms.
  • Ecobee, Inc. has announced its partnership with select utility companies across the United States to distribute free and discounted Ecobee3 lite, an advanced residential thermostat, that will help the residents stay cool, save energy, and lower energy bills.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5030
  • Published Date: Jun 14, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for advanced home appliances for automatic cooling and heating of devices and rooms along with the rising living standard are considered to be major factors contributing to market size expansion.

The market size of smart thermostats is anticipated to attain a CAGR of ~20% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Google Nest (Google LLC), Ecobee, Inc., Honeywell International Inc., Emerson Electric Co., Tado GmbH, Ingersoll Rand, Nortek (NTK Holdings, Inc.), Schneider Electric SE, Carrier Global Corporation, Control4 Corporation (Snap One, LLC), and other key players.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, connectivity, product, application, and region.

The climate control segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Lack of awareness regarding technology along with the requirement of high initial investments are estimated to be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Smart Thermostat Market Report Scope
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