The global smart thermostat market is expected to reach USD 2.21 billion by 2022, according to a new study by Grand View Research, Inc. These devices allow users to remotely manage their heating and air conditioning systems using wireless connectivity and mobile apps. They form an important part of smart homes and have gained immense demand from residences in developed regions such as North America and Europe.
The smart thermostat market is expected to witness growth since they display energy consumption in real-time and are able to adjust itself based on ambient conditions automatically. They can connect to the internet and offer analytics and performance measurement tools through web portals. Such devices are packed with technologies such as ZigBee or Wi-Fi and form a part of the home automation ecosystem.
Energy and utility retailers also play a vital role in bringing devices into households. May utilities are offering these products as a part of their home energy management schemes. Involvement of energy retailers heightens the potential for smart thermostat industry growth. At the same time, proliferation of mobile phones and its convergence with thermostats is makes these products much more attractive for end-users.
Growing penetration of smartphones, rising energy costs, need for effective energy management solutions and favorable regulatory scenario are expected to propel growth over the coming years. However, high cost of devices and data security concerns may restrain the smart thermostat market. Increased penetration of Near Field Communication (NFC) and ZigBee home automation devices is expected to augment demand.
Further key findings from the study suggest:
– The smart thermostat market primarily includes technology such as Wi-Fi, ZigBee and other technologies including NFC, Bluetooth, and Ethernet. ZigBee-enabled devices are expected to gain significant share as consumers shift towards home automation devices.
– North American and European smart thermostat market accounted for about 90% of the overall market in 2014 owing to high demand for such devices in the region and favorable government mandates. Surge in new construction activity and growing popularity of smart homes is expected to spur demand.
– Key players include Honeywell, Google Nest and Ecobee; and together they accounted for over 40% of the overall smart thermostat market share in 2014. Companies have been focusing on development and launching of new products, as well as upgrading the existing product portfolio. Agreements and collaborations are also practiced for gaining strategic advantage. Competition in the industry is intensifying rapidly owing to high interest levels among customers piqued by arrival of new and creative products.