The "Smart Thermostat Market by Product (Connected, Learning, Standalone), Connectivity Technology (Wireless, Wired), Installation Type (New Installation, Retrofit Installation), Vertical (Residential, Commercial, Industrial), and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The smart thermostat market size is expected to grow from USD 2.5 billion in 2021 to USD 6.4 billion by 2026; it is expected to grow at a CAGR of 20.8% from 2021 to 2026.
The key factors driving the growth of the smart thermostat market are increasing adoption of smart homes attributed to the COVID-19 situation, the emergence of IoT-enabled HVAC systems, government regulations pertaining to increase the energy efficiency of buildings, and surging adoption of smart home voice assistants.
The market for connected smart thermostats to account for the largest market share during the forecast period
The connected smart thermostat segment is expected to continue to hold the largest market size during the forecast period. The growth of the connected smart thermostat segment is majorly driven by the increasing demand for energy-efficient devices and the expansion of the smart home market. The growing smart home market in APAC is expected to create lucrative opportunities for the global market players in the near future. As the product is cheaper as compared to a learning thermostat, it is a preferred choice for commercial building applications.
Wireless network to account for larger market share during the forecast period
The wireless segment is expected to continue to hold a larger market size during the forecast period. Wireless network is the most widely used connectivity technology in smart thermostats as it helps to reduce the installation and maintenance costs, provides higher flexibility and scalability, and better connectivity. The installation of wireless connectivity makes smart thermostats more compatible with smart devices such as smartphones, tablets, and laptops for operation. The increasing adoption of smart homes in the US is fueling the demand for smart thermostats based on wireless connectivity technology.
New installation to account for larger market share during the forecast period
The new installation segment is expected to continue to hold the larger market size during the forecast period. Rapid infrastructure developments, improved standard of living, and increased focus on developing energy-efficient HVAC systems are fueling the growth of the smart thermostat market for new installation.
Implementation of various government regulations to deploy energy-efficient HVAC systems and controls has resulted in the wide adoption of smart thermostats in new buildings. These factors have led to the higher growth of the new installation segment.
Residential vertical to hold the largest size during the forecast period
The residential vertical is expected to hold the largest market size during the forecast period. The growing awareness regarding energy conservation & efficiency and environmental protection has fueled the adoption of energy-efficient HVAC controls such as smart thermostats. They help in the optimum utilization of energy and maintaining the most comfortable and healthy environment indoors. Favorable government regulations and tax credit facilities on the installation of HVAC systems and the increasing focus of end users on reducing electricity bills have significantly contributed to the growth of the smart thermostat market for the residential vertical.
North America is expected to capture the largest market size during the forecast period
The North American region is expected to hold the largest share of the smart thermostat market during the forecast period. Supportive government plans and programs & favorable laws are the major factors driving the growth of the regional market. However, the US witnessed a significant decline in the market size in 2020 due to the sudden outbreak of the COVID-19 pandemic and its adverse effects on the infrastructure, industrial, and commercial sectors. The adoption of smart thermostats might be largely impacted in 2021 due to the shutdown of various ongoing construction sites. However, with these projects gradually resuming operations, the demand for smart thermostats is expected to increase with time in the coming years, along with economic recovery.
Increasing Adoption of Smart Homes Attributed to COVID-19 Situation
Emergence of Iot-Enabled HVAC Systems
Government Regulations Pertaining to Increase Energy Efficiency of Buildings
Surging Adoption of Smart Home Voice Assistants
High Manufacturing and Installation Costs of Smart Thermostats
Concerns Regarding Data Security
Increasing Demand for Self-Learning Devices
Growing Demand for Cloud Computing in HVAC Industry
High Upgradation Cost of Existing Systems
Inability to Work Offline
Disruption in Supply Chain due to COVID-19 Situation
Alphabet (Google Nest)
Empowered Homes (Mysa)
Johnson Controls (Lux Products)
Radio Thermostat Company of America
For more information about this report visit https://www.researchandmarkets.com/r/mu0j2k
View source version on businesswire.com: https://www.businesswire.com/news/home/20210408005572/en/
Laura Wood, Senior Press Manager
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