The proliferation of smart devices in residences across the globe has risen over the last two years. Smart thermostat is one such device that has seen traction, especially in regions like North America and Europe. Once considered as expensive devices with complicated controls, smart thermostats have become consumer friendly and light on the pocket due to the various rebates offered to attain energy efficiency.
The market is split into 4 key regions: North America, Europe, Asia-Pacific, and rest of the world, which comprises the Middle East, Africa, Latin America, and Commonwealth of Independent States. By areas of use, the market is focused on the residential segment. The study also looks into the market split by type: learning and connected thermostats.
The smart thermostats market is estimated to be $1.63 billion in 2018 and is expected to grow at a compound annual growth rate of 16.7% from 2018 to 2025. North America leads the current market for smart thermostats, followed by Europe. However, future growth of North America will be comparatively lower than that of Europe. Sales in Asia-Pacific and the Middle East will be concentrated in select countries like China, Japan, and the United Arab Emirates. The increasing role of smart thermostats for demand response, increase in the adoption of smart home automation devices, and wider adoption beyond the residential segment are the key drivers for this market. The lack of awareness on the benefits of smart thermostats and high cost of products in developing countries are the barriers to early adoption. In developed markets, cybersecurity and compatibility issues with legacy systems are the reasons for lower penetration.
The smart thermostats market is led by Nest Labs, a Google company, followed by Honeywell and ecobee. Building automation companies like Emerson, Siemens, Schneider, Johnson controls, and energy management companies like tado, Netatmo, and Zen Thermostats complete the list of major participants in the smart thermostats market.
Key Issues Addressed
- How has the global smart thermostat market performed so far and how will it perform during the forecast period?
- What are the key driving factors and challenges in the global smart thermostat market and what are their impacts?
- What are the current technologies prevalent in the smart thermostats market and will there be any technology transition that will happen over the next 5 years?
- What are the price trends in the smart thermostat market?
- What is the degree of competition in the global smart thermostat market? How does it differ by region?
- What are the growth opportunities and critical success factors for participants to survive and compete in this market?