Smart Thermostats Market Overview:
According to the International Energy Agency (IEA), the global electricity demand increased by 4% in 2018, which is twice as fast as the overall energy demand. Furthermore, the organization has assessed that CO2 emissions increased by 2.5% due to the electricity generation by coal. Evidently, the world is in a dire need for reducing energy consumption, especially due to the threatening depletion of resources and environmental concerns. A significant part of this energy consumption is due to the air conditioners that are used in the residential and commercial buildings. Previously, programmable thermostats were used in order to monitor the temperature of air conditioners and make modifications in order to save energy. However, human errors in monitoring lead to more energy consumption, which is the reason smart thermostats are incorporated nowadays. Owing to the indispensable requirement of monitoring energy consumption attributable to air conditioners, these devices are in high demand, and the smart thermostats market already had a valuation of $4.16 billion as of 2018. Furthermore, the demand for smart thermostats in various end-user industries is poised to help the market register a compound annual growth rate (CAGR) of 21.64% during the forecast period 2019--2025.
Owing to the propitious progress in the automation sector in North America, the smart thermostats market is gaining traction in the region. Furthermore, the existing residential and commercial infrastructure in North American countries are integrated with the most advanced facilities, which is driving the smart thermostats market in the region. The federal energy management laws enforced by the Office of Energy Efficiency & Renewable Energy are making it imperative for end-users to use energy-saving devices. Smart thermosets are found to be energy saving, and these laws are creating more opportunities in the US smart thermostats market. Similar is the case with other countries such as Mexico, Canada, and others. North America had a significant smart thermostats market share of 31.61% in 2018.
Smart Thermostats Market Outlook:
Smart thermostats are used as a part of home automation in order to control energy consumption by HVAC systems. These devices use passive infrared (PIR) motion sensors and are designed with a WiFi module. Smart thermostats have applications in all the end-user industries that use HVAC systems for air conditioning. These include residential buildings, manufacturing industries, education & research, retail, and hospitals.
The key application of smart thermostats is found to be in residential buildings. This is mainly attributed to the explosive growth of the real estate sectors in developed and developing economies. Furthermore, there is a discernible penetration of home automation in the residential sector, which is leading to a rise in the sales of smart thermostats. The demand for thermostats is set to grow with a substantial CAGR of 19.65% through to 2025.
Smart Thermostats Market Growth Drivers:
· The Proliferation of Home Automation –
The smart homes market is making strides worldwide, which is quite evident from the fact that it had a huge market size of $70 billion to $74 billion as of 2018. Moreover, the demand for smart homes is poised to increase with a CAGR of 12% to 15% during the forecast period 2019--2025. This has a subsequent effect on the home automation market, which is gaining grounds in developed and developing economies with promising progress in the future. Evidently, smart thermostats are an integral part of home automation systems, and it is foreseen that there will be extensive growth prospects in the home automation industry, which will significantly support the smart thermostats market.
· The Booming HVAC Market Leading to Soaring Sales –
Air conditioners have become an integral part of all the buildings that include commercial, industrial, and residential. This resonates with growth prospects in the HVAC equipment market, which is leading to a growth in the sales of smart thermostats. Furthermore, smart thermostats have a huge role in the robust growth potential that the HVAC sensors market has been witnessing. Due to the continuous demand from the HVAC industry, thermostats had witnessed a global trade of $4,397,879 thousand in 2018, as per data from the International Trade Center (ITC). A significant fraction of this worldwide trade of thermostats is attributable to smart thermostats.
· Multiple End-User Industries Supporting the Smart Thermostats Market –
Smart thermostats are used in industrial and commercial sectors as much as they are used in the residential sector. The commercial complexes such as shopping malls make a heavy usage of HVAC systems, which creates a requirement for smart thermostats. The world is also observing an emergence of new manufacturing units in order to fulfill the future requirements as mentioned in the United Nations’ = Sustainable Development Goals (SDGs). Various government laws and regulations pertaining to energy consumption are applicable in industries. These industries strive to monitor energy consumption, primarily by HVAC systems. The requirement from industries is further boosting the smart thermostats market.
Smart Thermostats Market Trends –
· Internet of Things (IoT) Poised to Disrupt to Market –
The Nest thermostats gather information pertaining to the location of the user and utilize the data related to humidity, light levels, and motion in order to regulate the temperature of HVAC systems. These devices are connected with mobile devices through IoT, which enables data access.
· The Application of Smart Thermostats in Smart Home Appliances –
The smart home appliances market was valued at $32.68 billion in 2018, and the demand is poised to increment at a healthy CAGR of 15.40% through to 2025. Smart home appliances such as washing machines and refrigerators are nowadays incorporated with smart thermostats. This trend is poised to expand the smart thermostats market size.
Smart Thermostats Market Challenges –
Even though the smart thermostats market is poised to boom even further in the future, customers still rely on the conventional programmable thermostats, which is dwarfing the market size. However, there is a growing awareness about energy conservation and how programmable thermostats are not as effective as the smart ones. This awareness among the customer-base will lead to an increased demand for smart thermostats in the future. Another challenge faced by the vendors in the smart thermostats market is that the devices are yet to impart flawless connectivity through IoT. However, the manufacturers are investing in R&D and trying to alleviate the issue in order to leverage technology even further and improve the performance of smart thermostats.
Smart Thermostats Market Key Players Perspective –
The major players of the smart thermosets market are Honeywell international, Nest Labs, Ecobee, Schneider Electric SE, Tado, The Emerson Electric Co., Ingersoll Rand, Carrier Corporation, Control4 Corporation, and Nortek, Inc.
Smart Thermostats Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the smart thermostats market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The smart thermostats market research report also analyses the application of the devices based on new technologies that includes wired network and wireless network.
Smart Thermostats Market Report: Industry Coverage
This report also documents the product based on components that include display, temperature sensor, humidity sensor, motion sensor, and others.
The smart thermostats market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
Key Questions Addressed in the Smart Thermostats Market Report
Is the market demand for smart thermostats growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market?
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the smart thermostats market?
A Few Focus Points Of This Research Are Given Below: