The Global Smart Thermostat Market was valued US$ 1.9 Billion in 2020 is expected to reach US$ 6.8 Billion by 2027, with a growing CAGR of 19.8% during the forecast period (2021-2027).
The increasing usage of smartphones, rising unit energy costs, demand for efficient energy management solutions, and desirable regulatory policy scenarios are expected to propel the growth of the market in the next few years. Progress in industrialization and a significant increase in population are some of the other driving forces of the global smart thermostat market. However, significant investments are necessary to develop innovative smart thermostats and improve control systems. This may hinder the entry of small and medium-sized enterprises (SMEs) in the market. However, the HVAC industry is experiencing exponential growth. In addition, advances in proprietary distributed equipment technology and increasing demand for cloud computing in the HVAC industry provide profitable market opportunities.
Outbreak of COVID-19 had both positive and negative impact on the smart thermostat industry based on time frame. The early months of COVID-19 outbreak have hampered the smart thermostat market negatively by affecting the supply chain for the market. Regions like U.S., South Korea, China, and Japan have been largely affected by the pandemic. These regions hold a great manufacturing share of smart thermostat market. The epidemic has not only affected the manufacturing process but also the supply chain for the market. Both the industrial and residential verticals were experiencing a low demand in early time of pandemic. On the other hand, sequential years of the COVID-19 pandemic have a positive impact on the smart thermostat industry owing to increased adoption of smart homes and offices in developed countries due to COVID-19 situation. This pandemic have imposed a stay- home orders mandatory for most of the population and thus people have experienced increase in interaction and changed way of living in their homes leading to smart home revolutions by installing smart thermostat devices in their spaces.
The smart thermostat controls the heating, ventilation, and air conditioning systems of a home with a thermostat that can be used with home automation. These smart devices offer users the advantage of being able to control the temperature throughout the day using manual and automatic programs. This allows the user to adjust the heating settings from another device connected to the internet, such as a laptop or smartphone. Smart thermostat also controls smart devices such as radiators and boilers for window air conditioners, individual air conditioners, portable air conditioners, heaters, and air conditioners used in smart infrastructure.
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