Global Smart Thermostat Market 2023-2030

Global Smart Thermostat Market 2023-2030

Global Smart Thermostat Market Size, Share &Trends Analysis Report by Product (Connected Smart thermostat, Learning Smart Thermostat, and Standalone Smart Thermostat), by Connectivity Technology (Wireless Network and Wired Network) by Installation Type (New Installation, and Retrofit Installation)and by Vertical(Residential, Commercial, and Industrial), Forecast Period (2024-2031)

The global smart thermostat market is anticipated to grow at an exponential CAGR of 28.2% during the forecast period (2024-2031). The market’s growth is attributed to the increasing demand for smart thermostats driven by growing consumer preference for smart gadgets and energy-efficient solutions.. In smart thermostat solutions interoperability and integration are highly sight after. For instance, the redLINK 3.0's expanded control capabilities and simple installation process promote compatibility with smart thermostats and other smart home products, promoting a more integrated ecosystem. Furthermore, since it enables for seamless connectivity with relevant HVAC systems and other smart house components, the simpler integration with existing HVAC systems and other smart home components promotes higher adoption among both consumers and enterprises.

In July 2022, Resideo Technologies, Inc., launched its Honeywell Home T10+ Smart Thermostat Kits. It has improved its Honeywell Home T10 Pro Smart Thermostat with RedLINK3.0, that offers additional control over three types of indoor air quality equipment, offering easy setup and customized options. Such developments are anticipated to drive the global market growth.

Segmental Outlook

The global smart thermostat market is segmented on the product, connectivity technology, installation type, and vertical. Based on the product, the market is sub-segmented into connected smart thermostat, learning smart thermostat, and standalone smart thermostat. Based on the connectivity technology, the market is sub-segmented into wireless network

and wired network. Based on the installation type, the market is sub-segmented into new installation, and retrofit installation. Furthermore, on the basis of vertical, the market is sub-segmented into residential, commercial, and industrial. The wireless network subcategory is expected to capture a significant portion of the market share within the connectivity technology segment. The growth can be attributed to the high adoption of wireless network, such as Bluetooth smart thermostats owing to their high popularity. However, the wireless technologies offer a number of advantages over conventional technologies, including ease of installation, cheaper costs, and greater flexibility.

Zigbee Sub-Segment is Anticipated to Hold a Considerable Share of the global Smart Thermostat Market

Among the wireless technology, the ZigBee sub-segment is expected to hold a considerable share of the global smart thermostat market. The segmental growth is attributed to the high demand possibilities for ZigBee protocol. Zigbee's protocol facilitates easy integration with a wide range of IoT devices, allowing the UEI TBH300 to effectively communicate with other devices that are compatible with Zigbee in smart home ecosystems. In July 2022, Universal Electronics Inc. launched the new UEI TBH300 Smart Thermostat. The UEI TBH300 thermostat, integrated with the RUCKUS IoT suite, offers sustainable energy features for property managers and hoteliers, enhancing guest experience, cost savings, and energy efficiency. The ZigBee thermostat, when paired with RUCKUS IoT Suite, enhances guest experience, energy efficiency, and cost savings by facilitating faster installation and control during check-in and check-out. Such developments are further contributing to the segmental market growth.

Regional Outlook

The global smart thermostat market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, North America is anticipated to hold a prominent share of the market across the globe, owing to the high adoption of smart thermostats in the region. Furthermore, the rising green buildings and government programs that promote energy-efficient practices in the commercial sector are encouraging the use of these devices across the region. In the US, the government has promoted the purchase of smart thermostats, with 17% of residences possessing them installed. Researchers have estimated potential cooling energy reductions in commercial buildings ranging from 4 to 32%, with one research projecting energy savings of more than 50% with the utilization of neural network-based predictive thermal comfort control.

Europe is Expected to Grow at a Significant CAGR in the Global Smart Thermostat Market

Among all regions, the Europe is anticipated to grow at a significant CAGR over the forecast period. Regional growth is attributed to the rising initiatives to increase awareness of energy efficient devices. Smart thermostats have grown more popular as a result of government incentives and regulations targeted at lowering energy consumption. Rebates and tax credits encourage individuals and businesses to invest in energy-efficient technology across the region. According to the MDPI, in April 2022, Smart thermostats have been demonstrated to minimize globally energy demand, with Europe witnessing a 22.0% reduction in energy consumption in over 1 million residences. If this technique were implemented in all European residences, it can reduce total European carbon dioxide (CO2) emissions by roughly 5%. Thereby, is contributing to the regional market share. Market Players Outlook

The major companies serving the smart thermostat market includes Honeywell International Inc., Lennox International Inc., Mitsubishi Electric Corp., NETATMO, and Resideo Technologies, Inc. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in May 2023, Mysa acquired Zen Ecosystems, the acquisition of a company that helps small and medium-sized organizations monitor and improve their energy usage, thereby expanding its reach in the energy-efficient smart thermostat and smart energy management market and boosting its objective to lead in global electrification and climate change.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global smart thermostat market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies. Competitive strategies by identifying ‘who-stands-where’ in the market.