Chicago, April 06, 2023 (GLOBE NEWSWIRE) -- The Smart Thermostat Market by Product (Connected, Learning, Standalone), Connectivity Technology (Wireless, Wired), Installation Type (New Installation, Retrofit Installation), Vertical (Residential, Commercial, Industrial), and Region, 2026, The market has a promising growth potential due to emergence of IoT-enabled HVAC systemsas the combination of the HVAC industry and IoT provide superior customer-centric services and enabled remote appliance control. Increasing adoption of smart homes; government regulations pertaining to increase energy efficiency of buildings; and surging adoption of smart home voice assistants are among the major factors driving the growth of the smart thermostat market.
High manufacturing and installation costs of smart thermostat
High investments are required to upgrade control systems and develop innovative smart thermostats. This makes it difficult for small- and mid-sized enterprises (SMEs) to enter the smart thermostat market. The HVAC industry is poised to experience exponential growth. HVAC systems integrated with smart thermostats require fine-tuning and custom fabrication of parts during installation for their efficient working and elimination of failure.
Thus, skilled professionals are needed for the proper installation of smart thermostats integrated with HVAC equipment. If the installation is not done by a skilled professional, the end user may need to pay more in the long run for repairs, or the HVAC systems may not work efficiently. Thus, the requirement of a skilled workforce also adds to the cost of system installation
Learning smart thermostat segment is projected to register the highest CAGR by 2026
The smart thermostat market for learning smart thermostat segment is expected to grow at fastest CAGR during the forecast period. A learning thermostat is the most advanced smart thermostat that learns the user’s schedule and forms a cycle to best fit the comfort of the user and optimize energy savings.It seamlessly connects with the internet and devices such as mobiles, tablets, laptops, and voice assistant devices, allowing the user to efficiently manage the HVAC equipment. A learning thermostat also has the capability to exercise zonal control. The data collected by a learning thermostat also intimates the users for predictive maintenance, thus avoiding major maintenance costs due to any equipment failure.
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Scope of the Report
| Report Metric | Details |
| Estimated Market Size | USD 2.5 Billion |
| Projected Market Size | USD 6.4 Billion |
| CAGR | 20.8% |
| Years considered to provide market size | 2017–2026 |
| Segments Covered |
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| Geographies Covered |
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| Market Leaders | Ecobee (Canada), Johnson Controls (Lux Products) (Ireland), Legrand (Netatmo) (France), Siemens (Germany), Trane Technologies (Ireland), Tado (Germany), Bosch Thermotechnology (Germany), Centrica Hive (UK), Climote (Ireland), Empowered Homes (MYSA) (Canada), Eve Systems (Germany), Salus Controls (UK) |
| Top Companies in North America | Alphabet (Google Nest) (US), Emerson Electric (US), Honeywell International (US), Lennox International (US), Carrier Corporation (US), Resideo Technologies (US), Control4 Corporation (US), Nortek Control (US), Alarm.com (US), Cielo Wigle (US), MRCOOL (US), Radio Thermostat Company of America (US), Vine Connected (US), VIvint (US), Zen Ecosystems (US) |
| Key Market Driver | Emergence of IoT-enabled HVAC systems |
| Key Market Opportunity | Increasing demand for self-learning devices |
| Largest Growing Region | Asia Pacific |
| Highest CAGR Segment | Wireless Network Segment |
Top Market Players:
Alphabet (Google Nest)
Google Nest is one of the key players in the smart thermostat market. It has adopted the strategy of product launches to gain a competitive edge in the market. For instance, in October 2020, it introduced Nest Thermostat. The company was acquired by Google Inc. in 2014, which helped the former to benefit from the wide geographical reach of its parent company and increase its customer base across the world. The company has a very strong image in the thermostat market. The strong R&D capabilities of Google ensure the company’s leading position in the future.
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Honeywell International
A diversified product portfolio helps the company to cater to a wide customer base. Also, a strong financial performance in the Building Technologies segment is expected to strengthen the position of the company in the smart thermostat market. The huge R&D expenditure of USD 2.6 billion in 2019 and similar investments in the past ensure the company’s technological edge in the thermostat market. Honeywell International has licensed its Honeywell Home brand through a long-term license agreement to Resideo to allow the latter to market its smart thermostats for home automation. Resideo is an independent public company spun-off from Honeywell in November 2018. Honeywell International focuses on sales by taking advantage of its wide geographic reach and brand name. The company brings world-class products and services to the market at an affordable price. The expansion strategy of the company also helps it to increase its customer base across the world, including in emerging economies such as India and China, which would also allow it to generate higher profit.
Emerson Electric
A diversified product portfolio and balanced global revenue generation of Emerson Electric decrease business risk. The company’s technology and engineering capabilities offer a competitive advantage. The percentage of R&D has increased over the last 5 years—from 2.2% in FY2016 to 2.6% in FY2020. These factors ensure steady growth for the company. The company has adopted product developments as a key strategy to increase its business in the smart thermostat market. In April 2018, Emerson announced that its top-rated Sensi smart thermostats were compatible with Google Assistant. These new innovative products would help the company to cater to new customers and increase its revenue in the smart thermostat market.
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