Smart Thermostat Market Size, Share & Trends Analysis Report By Technology (Wi-Fi, ZigBee, Others), By Product, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global smart thermostat market size was valued at USD 3,983.1 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 17.1% from 2023 to 2030. The significant growth can be credited to increasing demand for smart thermostats driven by growing consumer preference for smart gadgets and energy-efficient solutions. In this manner, smart thermostats gain massive traction as they regulate the operation of heating and cooling devices while conserving energy to a large extent. Their increasing adoption as a home automation device across smart homes is positively influencing the market growth.

The growing significance of energy management solutions coupled with increasing smartphone usage is positively influencing the market space. Several manufacturers are now offering closed application programming interfaces (API), in which vendors serve as the gatekeepers who provide access to these devices. Recently, various vendors have transitioned towards open API, which helps connect more thermostats with utility systems and existing home energy management platforms. For instance, the Ecobee API provided by Ecobee is an HTTP-based interface that offers access and control to its Ecobee thermostats. The integrators are allowed to read, update, and poll data about their thermostat.

Energy savings and improved return on investments offered by smart thermostats have not only increased their adoption in households, but also in industrial spaces. Various businesses and industries are adopting this technology as a low-cost way to manage their HVAC systems. Data security concerns and the high cost of devices are the potential factors acting as constraints for the adoption of smart thermostats.

Smart thermostats are capable of identifying user behavior, analyzing user patterns, adjusting the HVAC systems automatically, and offering remote monitoring capabilities via wireless connectivity. The Google Nest is a self-learning device that analyzes user activities using motion and Infrared (IR) sensors, temperature, and humidity sensors.

Technology Insights

The ZigBee technology segment accounted for a significant revenue share of nearly 18.0% in 2022 owing to increased consumer demand driven by their wireless connectivity with other home automation tools. Moreover, they also allow users to manage devices through smartphones. Besides, smart thermostats based on the ZigBee technology consume less power as compared to Wi-Fi, take less time to connect, and are cost-effective, which will expedite their adoption further.

The Wi-Fi segment is expected to record considerable growth by the end of 2030 with the increased adoption of wireless smart thermostats that can easily connect with an app on the users’ phones. It helps users schedule heating or cooling, adjust home temperature, and facilitate automation with other devices.

Product Insights

The standalone segment is likely to grow at a CAGR of more than 18.0% from 2023 to 2030 owing to increasing application in smaller or remote buildings worldwide. These units work together with a self-acting thermostat, which communicates directly to modulate, close or open the flow. Moreover, stand-alone thermostats play a key role in room HVAC applications, such as fan coils, heating and cooling, and variable air volume.

The connected segment is expected to witness a CAGR of over 14.0% between 2023 and 2030. This can be credited to increasing product demand owing to the remote connectivity, providing homeowners the remote access to the thermostats. These thermostats are controlled through phones, smart speakers, tablets, and other internet-connected devices.

End-user Insights

The residential segment is estimated to grow at a CAGR of more than 16.0% from 2023 to 2030. The significant growth rate can be credited to the rise in the average energy expenditure and the need for remote access solutions to monitor and control energy consumption.

The commercial segment is anticipated to record a substantial growth rate over the forecast period. The growth can be credited to the increasing deployment of smart thermostats in commercial spaces as they provide greater information to operation and facility managers. In the commercial HVAC system, smart thermostats help in adjusting the cooling or heating across various equipment, such as rooftop units, chillers, fan coils, zone dampers, heat pumps, etc.  

Regional Insights

North America is expected to dominate the smart thermostat industry by 2030 due to increasing awareness regarding energy consumption and the presence of key vendors in the region. The increasing average unit rate of power is encouraging industries, enterprises, and household consumers to adopt smart energy solutions, which drives the regional smart thermostat market growth further.   

The Europe smart thermostat industry is expected to record a substantial growth rate of 23.0% between 2023 and 2030 owing to favorable government initiatives in the region. For instance, in June 2022, the European Union announced the deployment of at least 1.5 million energy-saving smart thermostats.

Key Companies and Market Share Insights

Some of the key players operating in the smart thermostat industry include Honeywell, Google Nest, and Ecobee. Honeywell enjoys a strong position in the industry owing to its broad portfolio of products and strong distribution networks; however, the company is facing intense competition from start-ups such as Nest Labs, Inc. (Google), and Ecobee. Other key participants include Schneider Electric, Emerson Climate Technologies, Radio Thermostat Company of America, Carrier Corporation, Ingersoll Rand (Trane), Allure Energy Inc., Tado GmbH, Eneco, British Gas Hive, and Lux Products Corporation.

The companies are mainly focusing on new product launches, collaborations, and partnerships to strengthen their foothold in the market. For instance, in May 2022,  Ecobee launched its latest range of smart thermostats, namely, Smart Thermostat Premium and Smart Thermostat Enhanced. The new thermostats are equipped with radar, Ecobee’s most advanced sensor technology. The new technology has improved temperature readings, occupancy, and motion detection. Some prominent players in the global smart thermostat market include:

• Centrica Hive Limited

• Control4

• Ecobee

• Emerson

• Google Nest

• Honeywell Home

• Johnson Controls

• Lux Products Corporation

• Netatmo SA

• Resideo Technologies, Inc.

• Siemens

• Tado GmbH

• Vine Connected Corporation

Smart Thermostat Market Report Scope

Global Smart Thermostat Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global smart thermostat market report based on technology, product, end-user, and region:

• Technology Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Wi-Fi

  • Zigbee

  • Others

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Connected

  • Standalone

  • Learning

• End-user Outlook (Revenue, USD Million, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East and Africa