Connected Thermostat Market To Reach $8,169.7 Million By 2033

July 2025 | Report Format: Electronic (PDF)

Connected Thermostat Market Growth & Trends

The global connected thermostat market size is anticipated to reach USD 8,169.7 million by 2033 and is projected to grow at a CAGR of 15.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is primarily driven by rising demand for energy-efficient HVAC systems, increasing adoption of smart home technologies, and heightened consumer awareness of sustainable living. Connected thermostats provide users with real-time control, learning algorithms, and data-driven automation that optimize indoor comfort while significantly reducing energy consumption.

Opportunities in the market are growing across both developed and developing economies. In mature regions, growth is being driven by the retrofitting of existing HVAC systems in homes and buildings, along with enhanced connectivity and interoperability between smart devices. In emerging markets, rapid urbanization, rising disposable incomes, and government-led smart city initiatives are creating a favorable environment for new installations.

The regulatory landscape is also playing a crucial role in shaping the connected thermostat market. In North America and Europe, stringent energy efficiency regulations for buildings-such as ENERGY STAR certification, the European Energy Performance of Buildings Directive (EPBD), and national-level green building codes-are pushing the integration of smart thermostats in new construction and retrofit projects. Financial incentives, tax rebates, and utility-sponsored subsidy programs are encouraging both consumers and facility operators to adopt connected thermostats as part of broader energy optimization strategies.

Leading players in the connected thermostat market are pursuing a combination of product innovation, ecosystem integration, and strategic collaborations. Companies such as Honeywell International Inc., ecobee, and Carrier are continuously refining their offerings with features such as adaptive learning, multi-zone control, remote diagnostics, and over-the-air firmware updates. These players are also forming alliances with other industry players, undertaking acquisitions, and expanding their operational capabilities and sales presence. For instance, in November 2024, Resideo announced the new Honeywell Home FocusPRO thermostat series at its CONNECT 2024 event, featuring enhanced design, larger displays, and user-friendly interfaces to improve home comfort and energy efficiency.

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Connected Thermostat Market Report Highlights

Based on connectivity technology, the Bluetooth thermostats segment led the market in 2024, owing to their affordability, simple installation, and offline functionality. These models are particularly favored in budget-conscious residential and retrofit applications.
Based on distribution channel, the retail stores segment led the market as consumers preferred in-person consultation, bundled deals, and immediate product access. Brick-and-mortar outlets continue to play a dominant role in thermostat sales, especially in developed regions.
Based on application, the new construction segment led the market in 2024 driven by the growing inclusion of smart HVAC systems in modern buildings. Builders and developers are adopting connected thermostats to meet energy codes and boost project value.
Based on end use, the commercial segment led the market in 2024 due to widespread adoption across offices, retail stores, and public buildings. Businesses are integrating connected thermostats for energy efficiency, remote management, and sustainability compliance.
Based on region, the North American market dominated the global revenue share, supported by high smart home penetration and favorable energy efficiency programs. In addition, strong utility incentives, advanced HVAC infrastructure, and widespread consumer adoption drive continued growth.
In June 2025, Sinopé Technologies, a smart device manufacturer, launched a new range of Wi-Fi smart thermostats designed for central heating systems and heat pumps, including dual-energy compatibility. These thermostats feature remote control, geofencing, detailed energy consumption tracking, and sleek color touchscreen displays showing time, indoor/outdoor temperatures, and setpoints.

Connected Thermostat Market Segmentation

Grand View Research, Inc. has segmented the global connected thermostat market based on connectivity technology, distribution channel, application, end use and region:

Connected Thermostat Connectivity Technology Outlook (Revenue, USD Million, 2021 - 2033)