Smart thermostat is an energy-control device that connects with the HVAC system to reduce energy wastage. It predicts the start of the heating period for a day according to the requirement of home insulation and the outdoor temperature. It saves up to 30% to 35% energy within a household. The thermostats connect with HVAC system and maintain the temperature set by the users by controlling other heating and cooling devices.
Thermostats were primarily used for the residential application but with their increasing benefits, they are being adopted in other applications such as commercial, industrial, retail, healthcare, educational, and hospitality. However, the residential application holds the largest share of the market and is expected to grow at the highest CAGR. Smart thermostats are expensive as compared to conventional thermostats; however, they are preferred by consumers owing to their advanced features such as self-learning, programming, and easy installation. They allow working people to operate their heating and cooling devices through their smartphones and thus reduce the wastage of energy. Thus, the residential application is expected to be the major application for smart thermostats.
Smart Thermostat Market
One of the major growth drivers for the smart thermostat market is the globally rising demand for energy-efficient devices. The major application of smart thermostat is in residential buildings and this application is expected to grow at the highest rate during the forecast period. The overall smart thermostat market including hardware and service is expected to grow from USD 585.09 Million in 2014 and reach 5.9 Billion by 2020, at a CAGR of 31.82% between 2015 and 2020.
The manufacturers of smart thermostats are investing in R&D to develop innovative and technologically advanced smart thermostats. Second-generation smart thermostats are being launched in the market with additional features compared to the first-generation smart thermostat. As the accuracy and reliability of sensors is important, manufacturers are working to achieve high reliability in smart thermostats. The thermostat is used for many applications, of which residential is the largest application, followed by the industrial application.
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The industrial sector is also an important application for smart thermostats. The industrial sector deals with different departments and in every department, the temperature varies according to the work procedure. For instance, warehouses require a low temperature as compared to the product assembly department. Thus, the programmable thermostat in the industrial sectors learns the consumer behavior in a few days and can then set the temperature accordingly without any human interference. The easy communication of smart thermostat with the industrial HVAC system makes it ideal for the industrial application. With the increasing use of smart thermostats in industries, the energy waste can be drastically reduced, which in turn lowers the costs incurred for electricity.
