Smart Thermostats: Worldwide Industry Growth, Trends and Forecasts 2019-2024 with Analysis on Key Players -

Smart Thermostats: Worldwide Industry Growth, Trends and Forecasts 2019-2024 with Analysis on Key Players –

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Thermostat Market – Growth, Trends, and Forecast (2019 – 2024)”

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The smart thermostat market was valued at USD 689.8 million, in 2018,
and is expected to reach a value of USD 2,322.2 million by 2024, at a
CAGR of 23.1% during the forecast period (2019-2024).

Lighting and other household appliances consume a considerable amount of
energy and presently there is a dire need to use these energy resources
efficiently. Therefore, governments are emphasizing on the use of smart
devices in homes.

The main factors driving the need for smart thermostat are the
convenience, energy conservation, energy tracking, and need for an
increase in potential savings. For example, Ecobee claims its gear can
save an average of 23 per cent off bills whereas Nest claims its systems
can save between 10 and 12 per cent on heating and 15 per cent on

The BYOT (Bring-your-own-Technology) trend is expected to stimulate the
growth of the market over the forecast period. Consumers have
independently begun purchasing smart Wi-Fi enabled thermostats capable
of receiving demand response control signals. Additionally, with a wi-fi
connection and smart thermostats, virtual assistants, like Amazon Alexa,
or Google Assistant, are increasingly being used to control and monitor
the home temperature, program schedules, or crank up the A/C.

It was estimated that around 60.5 million Americans used virtual
personal assistants and voice-controlled speakers at least once a month,
according to an investment firm Cowen & Co. Also, in 2017, 24% of
Americans used Amazon Echo and 31% used Google Home for home control
settings following music, shopping, and requesting information
applications. With the increase in the use of virtual assistants in home
control, the forecast period is likely to witness the exponential
adoption of smart thermostats.

Key Market Trends

Increasing Internet Penetration & Connected Devices are Driving the
Market Growth

  • Increasing internet penetration, coupled with the increased usage of
    smartphones and other mobile devices has resulted in an increased
    spread of connectivity, owing to the rise in internet-connected
  • Owing to technological advancements, the appliances in residential
    buildings, such as washing machines, heating, and cooling equipment,
    and refrigerators, are increasingly going smart. This means that they
    can be connected to the internet.
  • Due to this, smart thermostats (that also have the ability to be
    connected to the internet) are increasingly being adopted. This is
    because they enable users to adjust heating settings from other
    internet-connected devices, such as smartphones or laptops, which
    allows them to control the thermostat remotely. This ease of use is
    necessary for ensuring energy savings.
  • Additionally, M2M is expected to take home-based IoT to the next
    level. Manufacturers, like LG and Samsung, are already slowly
    unveiling smart home appliances to help ensure a higher quality of
    life for occupants.
  • For instance, an M2M-capable washing machine could send alerts to the
    owners’ smart devices once it finishes washing or drying, and a smart
    refrigerator could automatically order groceries from Amazon once its
    inventory is depleted.
  • The increasing popularity of these connected devices is expected to
    lead to an increased need for control, thereby driving the market

Asia-Pacific to Witness a Significant Growth Rate Over the Forecast

  • Consumers are adopting the smart assistant devices, such as Amazon
    Echo and Google Home for many purposes, with almost one-third of
    people using it as an information provider responding to questions,
    and over 40% as an audio speaker for listening to streaming music. The
    smart thermostats find application among the smart assistants,
    thereby, fueling its demand across the residential sector across the
  • Moreover, the Chinese government launched the ‘New-Type Urbanization
    Plan,’ focusing primarily on new-type, smart, and humanities city
    construction from 2014 – 2020.
  • Besides, in India, the IGBC (Indian Green Building Council) Green
    Homes is the first rating program that has been developed, exclusively
    for the residential sector, whose objective is to facilitate the
    effective use of site resources, water conservation, energy
    efficiency, handling of household waste, optimum material utilization,
    and design for healthy, smart homes.
  • This will encourage industry players to invest in smart home services,
    thus, having a positive impact on the smart thermostat market growth.

Competitive Landscape

The smart thermostat market is highly fragmented due to the government’s
support and promotion for the uptake of smart devices in residential
buildings. Many companies are also entering into the market, making it
competitive. Some of the key players in the market include Alphabet Inc.
(Nest Labs – Google), Honeywell International Inc., ecobee, Schneider
Electric SE, and Lennox International Inc.

Some recent developments in the market include:

  • January 2019 – Honeywell International Inc. introduced its latest
    T-series thermostats T9 and T10 feature wireless sensors that measure
    temperature and humidity on a room-by-room basis. The thermostats will
    be compatible with HomeKit later, allowing them to be controlled in
    the Home app on iOS and macOS and with Siri. The smart room sensors
    offer a few other features, including people detection that ensures
    occupied rooms are at a desirable temperature and a 200-foot range to
    help deliver whole-home comfort.
  • October 2018 – Nest Labs announced the expansion of its thermostat
    line with the introduction of the nest thermostat E in Europe. With a
    fresh look and the same great features found in the nest learning
    thermostat, the nest thermostat E can be controlled from anywhere with
    a phone and comes with a pre-set schedule so users can start saving
    energy right out of the box.

Key Topics Covered


1.1 Study Deliverables

1.2 Study Assumptions

1.3 Scope of the Study




4.1 Market Overview

4.2 Value Chain / Supply Chain Analysis

4.3 Industry Attractiveness – Porter’s Five Forces Analysis

4.4 Introduction to Market Drivers and Restraints

4.5 Market Drivers

4.5.1 Increasing Internet Penetration and Usage of Internet Connected

4.5.2 Increasing Popularity of Smart Homes

4.6 Market Restraints

4.6.1 High Installation Costs and Lack of Interoperability Challenges
the Market

4.7 Technology Snapshot


5.1 Geography

5.1.1 North America

5.1.2 Europe

5.1.3 Asia-Pacific

5.1.4 Rest of the World


6.1 Company Profiles

6.1.1 Nest Labs Inc.

6.1.2 Honeywell International Inc.

6.1.3 ecobee

6.1.4 Schneider Electric SE

6.1.5 Emerson Electric Co.

6.1.6 Lennox International Inc.

6.1.7 Inc.

6.1.8 LUX Products Corporation

6.1.9 Siemens AG

6.1.10 Johnson Controls PLC



For more information about this report visit

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Topics: HVAC
(Heating, Ventilation, and Air Conditioning)

Angela Fuller

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