Expanding For Pool of Consumers Providing an Impetus to the Smart Thermostat Market
Allied Market Research, titled, “smart thermostat market technology, application, and end user: opportunity analysis and industry forecast, 2020–2027,” the global smart thermostat market size was valued at $1.86 billion in 2019, and is projected to reach at $11.36 billion by 2027, growing at a CAGR of 28.00% from 2020 to 2027.
A smart thermostat, which is also commonly known as
communicating or connected thermostat, is an electronic device that enables
creation of programmable and automatic temperature settings based on weather
conditions, heating & cooling needs, and daily schedules. Smart thermostat
has the ability to learn patterns of its surroundings, thereby saving energy of
heating and cooling systems. For instance, a smart thermostat installed in a
household analyzes patterns of the household and adjusts heating and cooling
according to the same. Subsequently, it reduces use of heating and cooling
systems when the house is empty for a significant period. Furthermore, smart
thermostat can be operated using a phone, tablet, smart speakers, or any other
internet-enabled device. In, some of the smart thermostat have diagnostic
features, which enables it to detect any problem with the ducting or HVAC
system.
Rapid adoption of smart infrastructure in residential and
commercial infrastructure, penetration of IoT and AI based technologies, and
increase in use of smart technology in medical monitoring influences the smart
thermostat market growth. However, high cost of products in developing
countries hampers early adoption. Further, increased advancements and adoption
of automated systems in residential, commercial, and industrial sectors are
expected to provide lucrative opportunities for the global smart thermostat
industry during the forecast period.
The Wi-Fi segment was the highest contributor to the market in 2019. The Wi-Fi and Bluetooth segments collectively accounted for around 60% market share in 2019. Surge in internet penetration fuels growth of the Wi-Fi segment, thereby enhancing the global smart thermostat market growth.
Emergence of COVID-19 has significantly impacted the global
smart thermostat industry. Delay caused for construction projects due to
partial or complete lockdown in various regions of the world has significantly
reduced demand for smart thermostats during the pandemic. However, it has
created more demand from residential end users, owing to work from home
policies implemented by governments of several countries. Hence, the
residential sector is expected to witness prominent growth post-pandemic for
smart thermostats.
Region wise, Asia-Pacific holds significant share in the
global smart thermostat market revenue size. Asia-Pacific accommodates major
population of the globe. Adoption of smart phones and smart electronic
appliances in residential, commercial, and industrial sectors is expected to
propel the smart thermostat industry in this region. Owing to technological
advancements, appliances in residential buildings, such as washing machines,
heating, and cooling equipment, and refrigerators are increasingly becoming smart.
This means that they can be connected to the internet. Hence, all such factors
are anticipated to boost the market growth.
Key Findings Of The Study
- In
2019, the Wi-Fi segment accounted for the maximum revenue and is projected
to grow at a notable CAGR of 29.9% during the forecast period.
- The
air conditioning and heating segment together accounted for around 82.0 %
of the global smart thermostat market share in 2019.
- The
residential segment of the global smart thermostat market is projected to
grow at a CAGR of 26.7% during the forecast period.
- Asia-Pacific
region contributed major share in global smart thermostat market,
accounting for more than 40.0% share in 2019.
The key players profiled in the report include Emerson
Electric Co., Ecobee, Inc., Honeywell International Inc., Johnson Controls,
Nest Labs, Inc., Control4 Corporation, Schnieder Electric SE, Tado GmbH,
Nortek, Inc., and Ingersoll Rand plc. Market players have adopted various
strategies such as product launch, collaboration & partnership, joint
venture, and acquisition to expand their foothold in the global smart
thermostat market trends.
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