Global Thermostat Market Report and Forecast 2024-2032

Global Thermostat Market Outlook

The global thermostat market size is projected to grow at a CAGR of 8.70% between 2024 and 2032.

Key Takeaways

• There is a strong demand for advanced thermostat solutions that can help reduce energy consumption and lower carbon footprints.

• Thermostats are being integrated with other smart devices like smart lights, security systems, and voice assistants.

• The Asia Pacific region holds a major share in thermostat market due to favourable government policies promoting the installation of thermostats.

A thermostat is defined as electrical equipment which is used to increase or decrease the temperature of an area by adjusting the supply of electricity or gas to the heating apparatus. Car engines and electric blankets are some of the common examples of devices which use thermostats.

The increasing emphasis on energy conservation and reducing utility bills is a significant driver fuelling the thermostat market growth. Smart thermostats, in particular, are designed to optimise heating and cooling systems, leading to more efficient energy use and cost savings for consumers. The growing demand for heating, ventilation, and air conditioning (HVAC) systems in residential, commercial, and industrial sectors drives the need for thermostats to control and regulate these systems effectively. Moreover, increasing consumer awareness regarding the benefits of smart thermostats, such as convenience, comfort, and energy management, as well as preference for connected and smart home devices has led to a greater demand for these products.

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Key Trends and Developments

Implementation of geofencing; energy usage analytics; voice control integration; and IoT and connectivity are the major trends impacting the thermostat market development

March, 2024

Ryan Murphy announced the launch of the Line-Power smart thermostats which enhance Home Assistant heating by expanding off-the-shelf socket options.

January, 2024

Cielo WiGle Inc. (Cielo), a recognised name in the field of smart home climate control technology, announced its newest product, the Cielo Smart Thermostat Eco.

December, 2023

Google announced that its Nest Renew service is separating from Google and merging with the OhmConnect energy management platform to create a new entity called Renew Home.

August, 2023

Automotive component manufacturer MAHLE announced that it plans to sell its thermostat division to ADMETOS, an industrial and investment holding entity.

Implementation of geofencing

Some smart thermostats now use geofencing technology to detect when the homeowner is approaching or leaving their home.

Energy usage analytics

Modern thermostats often provide detailed energy usage analytics, allowing users to monitor their heating and cooling patterns and make informed decisions.

Voice control integration

As voice-controlled assistants like Amazon Alexa, Google Assistant, and Apple Siri become more common, there is a trend towards integrating thermostats with these voice-controlled platforms.

IoT and connectivity

The integration of thermostats with the Internet of Things (IoT) and other connected devices enables a more seamless and integrated smart home ecosystem.

Global Thermostat Market Trends

Modern thermostats, especially smart thermostats, are equipped with advanced technology that allows them to track and analyse energy usage related to heating and cooling in a home or building. For instance, smart thermostats continuously monitor the HVAC (Heating, Ventilation, and Air Conditioning) system's operation, including when it turns on and off, how long it runs, and the temperature settings. They can also factor in external data such as weather conditions.

Cielo WiGle Inc. (Cielo), announced the launch of its newest product, the Cielo Smart Thermostat Eco in January 2024. The launch of this new product could have implications for the smart home and thermostat market, particularly in the climate control segment and may influence consumer choices.

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Market Segmentation

“Thermostat Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Smart Thermostat

• Mechanical Thermostat

• Programmable Thermostat

• Others

Market Breakup by Mode of Operation

• Line Voltage

• Low Voltage

• Millivolt

Market Breakup by Application

• Residential

• Commercial

• Industrial

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Smart thermostat accounts for a major thermostat market share as it offers automatic temperature settings and excellent energy savings

As per the thermostat market analysis, smart thermostat occupies a significant market share. A smart thermostat enables users to create automatic and programmable temperature settings which saves them time during their day-to-day routine work and weather conditions. Smart thermostats can automatically adjust the heating and cooling according to the household patterns which is leading to a heightened adoption of smart thermostat devices from the residential sector.

In addition to this, the increasing inclination towards greater cost savings on heating and cooling in the household is the crucial driving factor of the smart thermostat segment. Over the forecast period, the growing awareness about the advantages offered by smart thermostats, such as energy usage tracking, remote control, and easy installation, among others, is likely to bolster the sales of the product in the forecast period.

Programmable thermostats are anticipated to gain significant growth in the forecast period as they allow users to set schedules for their heating and cooling systems, automatically adjusting the temperature based on predefined settings for different times of the day or week.

The residential sector maintains its dominance in the market due to the rising installation of HVACs

The residential sector accounts for a substantial share of the thermostat market. The increasing demand for HVACs, central heating, and water heating from households, owing to the increasing disposable income, smart urbanisation, and increasing inclination towards automated heating and cooling solutions, is driving the segment's growth. In addition, the increasing accessibility to the Internet of Things through Wi-Fi and Bluetooth is further propelling the demand for thermostats. During the forecast period, the anticipated increase in demand for thermostats to achieve cost-cutting on electricity bills is likely to be a major driving factor of the global market.

Moreover, the thermostats market is also anticipated to be driven by the anticipated increase in the application of thermostats in the commercial sector owing to the increasing standards of hotels and restaurants. There are growing research and development activities by major market players in the commercial sector to redefine the capabilities of thermostats to bolster the comfort of occupants which are leading to enhancements in product innovations.

Competitive Landscape

The thermostat market players are forming partnerships with technology companies, utility providers, and other stakeholders to enhance their product offerings

Carrier Corporation is a leading global provider of innovative HVAC, refrigeration, fire, security, and building automation technologies and offers a wide range of products and services designed to improve indoor comfort.

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries which offers a wide range of products and services related to building efficiency.

Honeywell International Inc. is a global technology and manufacturing company that offers a wide range of products and services across various sectors such as HVAC controls and building automation systems.

Schneider Electric is a global leader in energy management and automation solutions which offers a wide range of products and services for power management, automation, and energy efficiency.

Market players such as Siemens AG, among others are continuously investing in research and development to introduce advanced features in their thermostats, such as improved energy efficiency and integration with smart home systems.

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Thermostat Market Analysis by Region

The market in the Asia Pacific region is being driven by the increasing demand for thermostats from hospitals and ambulatory surgical centres. This is owing to the high healthcare expenditure and favourable policies of governments aimed towards augmenting the security of patients.  Across the forecast period, the increasing affordability of electronic appliances in emerging economies such as India and China in the household sector is anticipated to propel the growth of the thermostat market. The strong foothold of major market players and electronic appliance manufacturers is likely to bolster the supply chain of the product, thereby, accelerating the sales of thermostats.

The demand for thermostats in North America is strong and continues to grow, driven by several factors. The adoption of smart home technology is on the rise in the region as thermostats are often a central component of smart home systems, the demand for smart thermostats is increasing as more people look to integrate their heating and cooling systems with other smart devices for enhanced convenience and control.

Key Highlights of the Report