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The smart thermostats market share is expected to increase by USD 4.11 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 19.81%.
This smart thermostats market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers smart thermostats market segmentation by technology (Wi-Fi, ZigBee, and others) and geography (North America, Europe, APAC, Middle East and Africa, and South America). The smart thermostats market report also offers information on several market vendors, including Alphabet Inc., Carrier Global Corp., Centrica Plc, Computime Group Ltd., Control4 Corp., ecobee Inc., EcoFactor Inc., Emerson Electric Co., GridPoint Inc., Honeywell International Inc., Johnson Controls International Plc, Legrand SA, NETATMO SAS, Nortek Inc., Radio Thermostat Co. of America, Robert Bosch GmbH, Robertshaw Controls Co., Schneider Electric SE, tado GmbH, and Venstar Inc. among others.
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The growth in the number of HVAC equipment users is notably driving the smart thermostats market growth, although factors such as high initial prices affect the demand for smart thermostats may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the smart thermostats industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Smart Thermostats Market Driver
The growth in the number of HVAC equipment users is one of the key drivers supporting the smart thermostats market growth. HVAC systems are being increasingly adopted globally for their energy efficiency. With the help of heating and air conditioning equipment, the temperature can be maintained within a household. Smart thermostats as a part of the HVAC system helps in monitoring and controlling the temperature from remote locations, and it turns on the other HVAC system parts to achieve the desired temperature. Moreover, the construction industry grew by more than 10% during 2016-2019. Similarly, the US is witnessing steady growth in the construction industry. Consumers have become highly conscious of energy costs and the conservation of energy. Hence, they prefer investing in technology that aids in reducing costs. Such factors are expected to increase the demand for smart thermostats, which, in turn, will drive the growth of the market during the forecast period.
Key Smart Thermostats Market Trend
Increasing focus on integrated building management systems is one of the key trends contributing to the smart thermostats market growth. For instance, the integration of lighting systems and HVAC systems in buildings under a single platform reduces energy consumption and improves the efficiency of building management systems. Such integration helps in regulating the internal building environment in terms of temperature, humidity, and light. The same sensor can be used to adjust and control both lighting and temperature in a building according to the occupancy. The sensor can regulate and shut off one or both of the systems if the occupancy level drops down below a certain cutoff. Thus, the adoption of such advances will have a positive impact on the global smart thermostats market in the near future.
Key Smart Thermostats Market Challenge
The high initial prices affecting the demand for smart thermostats is one of the factors hindering the smart thermostats market growth. Most of the thermostats offered by major vendors such as Nest Labs, Honeywell International, and ecobee Inc. are the do-it-yourself (DIY) type, which poses a challenge to most consumers. Thus, it leads to the need to hire professionals to install the thermostats, thereby resulting in additional costs. Therefore, the high initial cost of smart thermostats and the costs incurred in their installation discourage many consumers from opting for them. On the other hand, traditional thermostats cost up to $50, which is lower than smart thermostats. Therefore, the high cost of smart thermostats may slow down the market penetration rate, which, in turn, will negatively impact the growth of the market during the forecast period.
This smart thermostats market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global smart thermostats market as a part of the global electrical components and equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the smart thermostats market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the smart thermostats market encompasses successful business strategies deployed by the key vendors. The smart thermostats market is fragmented and the vendors are deploying growth strategies such as quality, features, functionalities, and services to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The smart thermostats market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the smart thermostats market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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53% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for smart thermostats market in North America. Market growth in this region will be slower than the growth of the market in APAC and South America.
The growth in the residential and commercial construction sectors will facilitate the smart thermostats market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the market in North America witnessed a temporary decline due to the COVID-19 outbreak. However, the initiation of vaccination drives led to the lifting of lockdowns and the resumption of end-user activities, which helped the market to recover in 2021. Moreover, a rise in new smart home projects will drive the demand for smart thermostats in this region during the forecast period.
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The smart thermostats market share growth by the Wi-Fi segment will be significant during the forecast period. Wi-Fi technology is one of the most common technologies used in smart thermostats. A Wi-Fi-based thermostat is effective in reducing the energy consumption of a building. The Wi-Fi-based smart thermostat can automatically manage its operations and learn user preferences. Such smart thermostats can also be integrated with the home security system and smoke and carbon monoxide detectors. Such factors will positively impact the growth of the segment during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the smart thermostats market size and actionable market insights on post COVID-19 impact on each segment.
Smart Thermostats Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.81% |
Market growth 2022-2026 |
$ 4.11 billion |
Market structure |
Fragmented |
YoY growth (%) |
19.55 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 53% |
Key consumer countries |
US, Canada, Mexico, China, Germany, and UK |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Alphabet Inc., Carrier Global Corp., Centrica Plc, Computime Group Ltd., Control4 Corp., ecobee Inc., EcoFactor Inc., Emerson Electric Co., GridPoint Inc., Honeywell International Inc., Johnson Controls International Plc, Legrand SA, NETATMO SAS, Nortek Inc., Radio Thermostat Co. of America, Robert Bosch GmbH, Robertshaw Controls Co., Schneider Electric SE, tado GmbH, and Venstar Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Technology
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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