Smart Thermostat Market to Reach $2.21 Billion by 2022
They have gained significant demand in North America and Europe
SAN FRANCISCO — The global smart thermostat market is forecast to reach $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 significant 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 based on ambient conditions automatically. They can connect to the Internet and offer analytics and performance measurement tools through web portals. Such devices utilize technologies such as ZigBee or Wi-Fi and form 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. At the same time, the proliferation of smartphones and their convergence with thermostats makes these products much more attractive for end-users.
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 key findings from the study include:
• 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.
• The North American and European smart thermostat markets accounted for about 90 percent 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.
• Key players include ecobee, Honeywell, and Nest, and together they accounted for over 40 percent 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. 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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Publication date: 9/14/2015