Technology research firm Technavio’s latest market research report, Global Smart Thermostat Market 2015-2019, provides an in-depth analysis of the market in terms of revenue and emerging market trends. This report also includes up to date analysis and forecast for various market segments and all geographical regions.
Market demand for smart thermostats in APAC is directly proportional to the growth of the smart home market in the region. Technavio’s market research analyst estimates the smart home market in APAC to have reached close to USD 4 billion in 2014. An increase in the number of smart homes is thereby expected to boost the sales of smart thermostats in this region. The concept of smart homes is gaining popularity as consumers have started to appreciate new products and applications made available for domestic convenience. A smart home connects domestic appliances such as lighting systems, heating modules, air conditioning units, television sets, computers, entertainment systems, security devices, and camera systems using electronic communication units such as smartphones and connected tablets.
Market definition and growth of smart thermostats in APAC
A smart thermostat uses sensors to control and regulate temperatures remotely within homes and offices through smart devices such as smartphones and tablets. The settings of a smart thermostat can be changed as per user convenience and at any time of the day. This equipment is also capable of learning and adapting as per daily needs of users. Smart thermostats not only control the temperature efficiently but also lower the overall energy consumption in the installed vicinity. These are the factors primarily driving the growth of this market in APAC.
“According to our research, the smart thermostat market in APAC will witness increased collaboration between device manufacturers and energy suppliers during the forecast period. Many vendors have already partnered with HVAC (heating, ventilating, and air conditioning) service providers to reach out to potential customers, and this trend will continue to buoy the market growth over the next four years,” says Jujhar, senior market research analyst from Technavio.
This market research study presents the following segmentations based on the various technology types used to deploy smart thermostats: smart thermostat market in APAC by Wi-Fi, smart thermostat market in APAC by ZigBee, and smart thermostat market in APAC by others.
ZigBee segment of the smart thermostat market in the APAC
This segment emerged as the second largest contributor of the market during the forecast period. According to this market research analysis, the smart thermostat market by ZigBee is predicted to grow at a CAGR of over 57% until 2019. ZigBee wireless technology offers low data rates of 250 kbps and has less data security. Home automation applications such as thermostats are suited to ZigBee technology due to the technology’s ability to sustain battery stamina for many months or even years. Initially, ZigBee technology devices had interoperability issues, but new developments allow ZigBee-enabled devices to work with other technologies such as Wi-Fi or Bluetooth.
Market vendors have understood the key trends in IoT technology and are boosting market traction for Wi-Fi-enabled smart thermostats. However, these products are priced relatively higher (an additional USD100-500) than ZigBee-enabled smart thermostats. This differential pricing is likely to benefit the ZigBee market during the forecast period.