Smart Thermostat Global Market Report 2024

The smart thermostat market size has grown exponentially in recent years. It will grow from $2.96 billion in 2023 to $3.58 billion in 2024 at a compound annual growth rate (CAGR) of 21.1%. The growth observed in the historical period can be attributed to factors such as increased awareness of energy efficiency, the rise of smart homes, concerns about climate change, government regulations, and incentives, as well as the modernization of HVAC (heating, ventilation, and air conditioning) systems.

The smart thermostat market size is expected to see rapid growth in the next few years. It will grow to $7.29 billion in 2028 at a compound annual growth rate (CAGR) of 19.4%. The anticipated growth in the forecast period can be attributed to the expansion of the IoT (Internet of Things) ecosystem, a focus on energy conservation, the adaptation to remote work trends, the integration of AI and machine learning, and the emphasis on health and comfort solutions. Key trends expected in the forecast period encompass rapid technological innovations, the adoption of voice-activated controls, increased interconnectivity, occupancy sensing, and adaptive control features, as well as smart integrations with renewable energy sources.

The anticipated surge in smart home adoption is set to drive the growth of the smart thermostat market. Smart home adoption refers to the increasing embrace and integration of smart home technologies and devices by homeowners. This signifies a growing willingness among individuals and households to leverage the advantages and conveniences offered by a connected and automated living environment. Among the myriad of devices in smart homes, the smart thermostat stands out as a widely used component. These connected and programmable thermostats empower homeowners to remotely control and manage their heating, ventilation, and air conditioning (HVAC) systems. For example, IoT for All reported in December 2022 that smart home penetration was around 14%, with a projected increase to 25% by the end of 2026. Additionally, automation is expected to reach 48.4% of US households by 2025. Hence, the escalating adoption of smart homes is steering the growth of the smart thermostat market.

The increasing proliferation of Internet of Things (IoT)-linked devices is poised to elevate the smart thermostat market. IoT-linked devices, equipped with sensors, software, and connectivity, can collect, exchange, and act upon data through the internet. Smart thermostats, leveraging their connection to the Internet of Things (IoT), are transforming home temperature control by opening avenues for integration with various IoT-linked devices. This integration enhances comfort, convenience, and energy efficiency. According to a report by Ericsson in November 2022, broadband IoT (4G/5G) connections, powering the majority of cellular IoT devices, reached 1.3 billion in 2022. By the end of 2028, nearly 60% of cellular IoT connections are expected to be broadband IoT connections, with 4G dominating. Northeast Asia is leading in cellular IoT connections and is predicted to surpass 2 billion connections in 2023. Therefore, the escalating number of IoT-linked devices is steering the growth of the smart thermostat market.

A prominent trend in the smart thermostat market is the focus on product innovation by major companies to maintain their market standing. For instance, in July 2022, Universal Electronics Inc., a US-based consumer electronics company, introduced the TBH300 Smart Thermostat. This innovative product caters to property managers and hoteliers, enabling energy and cost savings through remote management capabilities and sustainable energy features. The TBH300 can be remotely controlled via the RUCKUS IoT suite, facilitating temperature adjustments in individual rooms even when off-site. The thermostat incorporates a built-in occupancy sensor for automatic temperature adjustment in unoccupied spaces, enhancing energy conservation. Additionally, it features Zigbee connectivity, integration with the RUCKUS IoT suite for hospitality, and easy integration into property management systems.

Major companies in the smart thermostat market are advancing technologies, including radar sensor technology, to broaden their customer base, boost sales, and increase revenue. Radar sensor technology utilizes radio waves to detect, locate, and track objects. In May 2022, Ecobee, a Canada-based manufacturer of smart home devices, launched Smart Thermostat Premium and Smart Thermostat Enhanced. Both models feature Ecobee's advanced radar sensor technology, enhancing temperature readings, occupancy detection, and motion sensing. The Premium variant is distinguished as the sole smart thermostat equipped with both an indoor air quality monitor and a built-in smart speaker compatible with Siri or Alexa. This integrated air quality monitor provides crucial data on volatile organic compounds, estimated carbon dioxide levels, and relative humidity. Additionally, the Premium model incorporates Ecobee's SmartSensor for precise occupancy and temperature readings throughout the living space.

In May 2023, Mysa Smart Thermostats, a Canada-based home automation company, acquired the assets of Zen Ecosystems in a deal of undisclosed value. Through this acquisition, Mysa Smart Thermostats aims to broaden its market reach, expand its customer base, access new technologies, develop innovative products and features, and strengthen its position in the smart thermostat market. Zen Ecosystems is a US-based manufacturer of smart thermostats for commercial spaces.

Major companies operating in the smart thermostat market report are Alphabet Inc., Bosch Thermotechnology, Siemens AG, Honeywell International Inc., Schnieder Electric SE, Johnson Controls International PLC, Emerson Electric Co., Trane Technologies PLC, Legrand Group, Ingersoll Rand PLC, Resideo Technologies Inc., Lennox International Inc., Nortek Inc., Control4 Corporation, Ecobee Inc., Tado GmbH, Centrica Hive Limited, Netatmo SA, Lux Products Corporation, Salus Controls GmbH, Empowered Homes LLC, Eve Systems GmbH, Nest Labs Inc., Vine Connected Corporation, Climote Ltd.

North America was the largest region in the smart thermostat market in 2023. Asia-Pacific is expected to be the fastest-growing region in the smart thermostat market report during the forecast period. The regions covered in the smart thermostat market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart thermostat market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of smart thermostats include connected smart thermostats, learning smart thermostats, and stand-alone smart thermostats. A connected smart thermostat is equipped with connectivity capabilities, often utilizing Wi-Fi or other wireless protocols. It incorporates technologies such as Wi-Fi, Bluetooth, Zigbee, and others. These devices find applications in air conditioning, heating, and ventilation, serving end users in residential, commercial, industrial, and other settings.

The smart thermostat market research report is one of a series of new reports that provides smart thermostat market statistics, including smart thermostat industry global market size, regional shares, competitors with a smart thermostat market share, detailed smart thermostat market segments, market trends and opportunities, and any further data you may need to thrive in the smart thermostat industry. This smart thermostat market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart thermostat market consists of revenues earned by entities by providing smart thermostat services such as temperature control, energy savings, learning and adaptability, remote access, and control services. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart thermostat market also includes sales of temperature sensors, programmable thermostats, remote access thermostats, geofencing thermostats, zoned thermostats, voice-enabled thermostats, and eco thermostats, which are used in providing smart thermostat services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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