The global smart thermostat market is anticipated to witness considerable growth in the forthcoming years. Smart thermostat is a device used in heating, ventilation, and air conditioning (HVAC) equipment to control temperature of a room. It automatically makes required changes for users to save energy and communicates with external sources. The device is used as an energy saving device in commercial as well as residential buildings as per the requirement. The device can be programmed using various mobile devices, such as smartphones, remote controls, and computers. The device can display the amount of heating being utilized and can also control its activity by tracking the daily routine of users.
Rising energy costs and growing need for power optimization in order to reduce electricity bills are the key driving factors in the market. Supportive government initiatives to utilize energy saving solutions and growing awareness regarding efficiency and safety offered by the device are expected to fuel the product demand in coming years. Increasing usage of building automation solutions in small medium enterprises (SMEs) owing to growth of digitization can also compel the market growth in the forthcoming years. Moreover, rising disposable income and technological advancements in the market can stimulate the market growth.
Rising price-based competition and lack of awareness regarding the product can hamper the market growth in future. In addition, stringent government regulations associated with quality of smart thermostats is likely to obstruct the market growth in the forthcoming years.
However, continuous efforts by manufacturers to develop cost-effective and technologically advanced products are likely to present lucrative growth opportunities in the market. For instance, Ecobee, a Canadian home automation company, launched ecobee4, a smart thermostat that offers built-in Alexa voice service. The device allows consumers to set a timer, adjust temperature, and read news wirelessly. In addition, its far-field voice technology allows the person to hear from a distance. Room sensors help in management of cold and hot spots in the room or space, where the device is installed. The device can save 23% on cooling and heating costs per year and is easy to install.
The market can be segregated on the basis of technology, components, and application. Wireless and wired are the two major technologies employed in smart thermostats. Motion sensor, display, humidity sensor, and temperature sensor are varied components available in market. Leading applications of the device might include commercial, residential, and industrial. Wifi-enabled devices are likely to witness high demand owing to their exceptional speed and security. In addition, they are widely used in commercial buildings and homes to minimize energy consumption.
North America has emerged as a leading region in the market. Countries such as United States and Canada are the key contributors to the market growth. Emergence of new and established companies in order to launch smart devices and internet of things (IoT) technologies is anticipated to augment the regional market growth. In addition, growing adoption of novel devices with advanced features and compatibility among consumers can propel market growth in coming years. Rising demand for home and office automation, increasing disposable income, and growing need for advanced energy consumption management solutions are also likely to drive the market in future.
Europe is also likely to witness significant growth in the coming years. This could be attributed to owing to growing demand among consumers due to availability of internet network in homes. In addition, presence of manufacturers, such as Hive, Netatmo, and eQ-3, can drive the market in the forthcoming years. United Kingdom has emerged as a key contributor to the market growth.
Latin America is a prominent region in the market owing to growing awareness regarding energy efficient solutions among consumers. Countries, such as Brazil, is also projected to emerge highly lucrative owing to increasing disposable income of residents.
Some of the leading companies operating in the smart thermostat market are Schneider Electric; Honeywell International Inc.; Tado GmbH; Ecobee, Inc.; Control4 Corporation. Manufacturers are taking up various strategies, such as mergers and acquisitions, in order to expand their business and gain a competitive edge in the market.
