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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 20% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2035) |
~ USD 16 Billion |
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Regional Scope |
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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:
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Type |
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Connectivity |
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End Use |
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Application |
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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.
Author Credits: Abhishek Verma, Hetal Singh
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