Forecast: Global Smart Thermostat Market to Top $2B by 2022
The North American and European smart thermostat markets accounted for about 90% of the overall market in 2014.
SAN FRANCISCO – The smart thermostat market is forecast to reach $2.21 billion with more than 40 million units in use globally by 2022, according to a new study by Grand View Research.
The devices allow users to remotely manage their heating and air conditioning systems using wireless connectivity and mobile apps. They are a key component to smart homes and have gained significant demand from residences in developed regions such as North America and Europe, according to the report.
Among feature sets that are fueling market growth, smart thermostats display energy consumption in real-time and are able to adjust based on ambient conditions automatically. They can connect to the Internet and offer analytics and performance measurement tools through Web portals. The devices utilize technologies such as ZigBee, Z-Wave, Wi-Fi, NFC, Bluetooth and Ethernet, while forming a part of the home automation ecosystem.
Utilities and energy retailers are also playing a vital role in bringing the devices into households. Many utilities are offering these products as a part of their home energy management programs. Involvement of energy retailers also heightens the potential for smart thermostat industry growth, according to the report.
Growing penetration of smartphones, rising energy costs, the need for effective energy management solutions and a favorable regulatory scenario are expected to propel growth over the coming years. However, the high cost of the 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.
Additional findings from the study include:
â€¢ The North American and European smart thermostat markets accounted for about 90% of the overall market in 2014, owing to high demand for such devices in these regions and favorable government mandates. Surge in new construction activity and growing popularity of smart homes is expected to spur demand.
â€¢ Key players ecobee, Honeywell and Nest accounted for more than 40% of the overall smart thermostat market share in 2014. Companies have been focusing on the development and launch of new products, as well as upgrading the existing product portfolio.
According to the report, agreements and collaborations are also being used to gain strategic advantage. Competition in the industry is intensifying rapidly owing to high interest levels among customers piqued by the arrival of new and creative products.
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