Global Smart Thermostat Market 2025-2035
Description
Smart Thermostat Market Size, Share & Trends Analysis Report by Connectivity Technology (Wireless Network and Wired Network), by Installation Type (New Installation and Retrofit Installation), and by Vertical (Residential, Commercial (Retail, Offices, Education Institutions, Hospitality Centers, Hospitals, Other), and Industrial), Forecast Period (2025-2035)
Industry Overview
Smart thermostat market size was estimated to be $4.8 billion in 2024, is projected to reach $27.5 billion in 2035, growing at a CAGR of 17.2% during the forecast period (2025–2035). The smart thermostat market growth is driven primarily by rising energy costs, energy-efficiency policies imposed by governments, and rapid connection with IoT environments. For instance, the U.S. Environmental Protection Agency reports that smart thermostats can cut HVAC energy consumption by about 10% annually, while also enabling remote climate control through smartphones and AI-based automation. Additionally, factors such as accelerating urbanization, increasing adoption of smart homes, the EU’s Green Deal, and many regional sustainability initiatives are positioning smart thermostats as a cornerstone of modern, energy-efficient infrastructure.
Market Dynamics
Increasing IoT and Smart Home Integration Catalyze Market Expansion
The increasing implementation of IoT technologies and artificial intelligence is transforming the smart thermostat space, shifting the industry from temperature controllers to smart home managers. Equipped with IoT and AI capabilities, modern smart thermostats can analyze occupancy patterns, weather forecasts, and user behavior to automatically optimize HVAC operations, delivering comfort with minimal user intervention, while decreasing energy waste. These developments have allowed leading manufacturers to achieve energy savings of 10–12% in heating and up to 15% in cooling through AI-driven optimization.
Additionally, the integration of voice control functionality through platforms such as Amazon Alexa, Google Assistant, and Apple HomeKit has further accelerated user adoption by providing intuitive and hands-free operation. For instance, ecobee offers a smart thermostat premium that can link with Amazon Alexa, Google Assistant, Samsung SmartThings, ecobee by Generac, and Apple HomeKit, while enhancing convenience and interoperability within smart home ecosystems.
Increasing Demand for Energy-Efficient Thermostats Drives the Market
The smart thermostat market is primarily driven by increasing demand for energy efficiency among both consumers and organizations. Heating and cooling typically account for more than 30% of total energy use in residential and commercial buildings. Smart thermostats have become one of the most powerful solutions to reduce energy costs for heating and cooling. According to the U.S. Department of Energy, smart thermostats have been reported to achieve energy savings of 10-30%. For Instance, an ecobee thermostat can save energy up to $284 annually by automatically adjusting temperatures based on daily routines, while delivering both cost savings and environmental benefits.
Market Segmentation
The global smart thermostat market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America is Dominating the Global Smart Thermostat Market
The North America region maintains its dominance in the smart thermostat market, as the U.S government is encouraging energy-efficient solutions. Programs such as Energy Star certification provide benchmarks and labeling for thermostats to ensure measurable energy savings, while driving consumer confidence and adoption. Additionally, a survey conducted by CNET (a Ziff Davis company) states that 78% of US adults are concerned about their rising utility costs, which highlights the increasing demand for energy-efficient products and positions smart thermostats as one of the most effective solutions to address this concern.
Market Players Outlook
The global smart thermostat market is highly competitive with a significant number of global and regional PLAYERS. Carrier Global Corp., ecobee Technologies ULC, Emerson Electric Co., Honeywell International Inc. (Resideo Technologies, Inc.), and Johnson Controls International plc are some of the market leaders for smart thermostats. These players are continuously expanding their product offerings to increase their market presence.
Recent Developments
Industry Overview
Smart thermostat market size was estimated to be $4.8 billion in 2024, is projected to reach $27.5 billion in 2035, growing at a CAGR of 17.2% during the forecast period (2025–2035). The smart thermostat market growth is driven primarily by rising energy costs, energy-efficiency policies imposed by governments, and rapid connection with IoT environments. For instance, the U.S. Environmental Protection Agency reports that smart thermostats can cut HVAC energy consumption by about 10% annually, while also enabling remote climate control through smartphones and AI-based automation. Additionally, factors such as accelerating urbanization, increasing adoption of smart homes, the EU’s Green Deal, and many regional sustainability initiatives are positioning smart thermostats as a cornerstone of modern, energy-efficient infrastructure.
Market Dynamics
Increasing IoT and Smart Home Integration Catalyze Market Expansion
The increasing implementation of IoT technologies and artificial intelligence is transforming the smart thermostat space, shifting the industry from temperature controllers to smart home managers. Equipped with IoT and AI capabilities, modern smart thermostats can analyze occupancy patterns, weather forecasts, and user behavior to automatically optimize HVAC operations, delivering comfort with minimal user intervention, while decreasing energy waste. These developments have allowed leading manufacturers to achieve energy savings of 10–12% in heating and up to 15% in cooling through AI-driven optimization.
Additionally, the integration of voice control functionality through platforms such as Amazon Alexa, Google Assistant, and Apple HomeKit has further accelerated user adoption by providing intuitive and hands-free operation. For instance, ecobee offers a smart thermostat premium that can link with Amazon Alexa, Google Assistant, Samsung SmartThings, ecobee by Generac, and Apple HomeKit, while enhancing convenience and interoperability within smart home ecosystems.
Increasing Demand for Energy-Efficient Thermostats Drives the Market
The smart thermostat market is primarily driven by increasing demand for energy efficiency among both consumers and organizations. Heating and cooling typically account for more than 30% of total energy use in residential and commercial buildings. Smart thermostats have become one of the most powerful solutions to reduce energy costs for heating and cooling. According to the U.S. Department of Energy, smart thermostats have been reported to achieve energy savings of 10-30%. For Instance, an ecobee thermostat can save energy up to $284 annually by automatically adjusting temperatures based on daily routines, while delivering both cost savings and environmental benefits.
Market Segmentation
- Based on the connectivity technology, the market is segmented into wireless networks and wired networks.
- Based on the installation type, the market is segmented into new installation and retrofit installation.
- Based on the vertical, the market is segmented into residential, commercial (retail, offices, education institutions, hospitality centers, hospitals, and other), and industrial.
The global smart thermostat market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America is Dominating the Global Smart Thermostat Market
The North America region maintains its dominance in the smart thermostat market, as the U.S government is encouraging energy-efficient solutions. Programs such as Energy Star certification provide benchmarks and labeling for thermostats to ensure measurable energy savings, while driving consumer confidence and adoption. Additionally, a survey conducted by CNET (a Ziff Davis company) states that 78% of US adults are concerned about their rising utility costs, which highlights the increasing demand for energy-efficient products and positions smart thermostats as one of the most effective solutions to address this concern.
Market Players Outlook
The global smart thermostat market is highly competitive with a significant number of global and regional PLAYERS. Carrier Global Corp., ecobee Technologies ULC, Emerson Electric Co., Honeywell International Inc. (Resideo Technologies, Inc.), and Johnson Controls International plc are some of the market leaders for smart thermostats. These players are continuously expanding their product offerings to increase their market presence.
Recent Developments
- In June 2025, Sinopé Technologies introduced its line of Wi-Fi thermostats for HVAC systems designed to optimize comfort and energy savings in homes equipped with central heating systems and heat pumps. This thermostat is compatible with dual-energy and maximizes energy savings, which directly connects to Wi-Fi. The thermostats offer advanced features such as remote control, geofencing, and detailed energy consumption graphs.
- In January 2025, ecobee announced the Smart Thermostat Essential, a cost-effective model that retains the brand's signature comfort and convenience features, including a full color touchscreen. Designed to deliver affordability without any compromise, the device enables customers to save up to 23% annually on heating and cooling costs, with the potential to recover its purchase price in just six months.
- In January 2025, Resideo Technologies introduced the new Honeywell Home X2S ENERGY STAR-certified smart thermostat at CES 2025. The new Honeywell Home thermostat can save on average 22% (heating) and 17% (cooling) on its HVAC energy consumption when using the recommended scheduling feature consistently.
- Market value data analysis of 2024 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global smart thermostat market. Based on the availability of data, information related to new products and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
Table of Contents
185 Pages
- 1. Report Summary
- Current Industry Analysis and Growth Potential Outlook
- Global Smart Thermostat Market Sales Analysis – Connectivity Technology | Installation Type | Vertical ($ Million)
- Smart Thermostat Market Sales Performance of Top Countries
- 1.1. Research Methodology
- Primary Research Approach
- Secondary Research Approach
- 1.2. Market Snapshot
- 2. Market Overview and Insights
- 2.1. Scope of the Study
- 2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Smart Thermostat Market Trends
- 2.2.2. Market Recommendations
- 3. Market Determinants
- 3.1. Market Drivers
- 3.1.1. Drivers For the Global Smart Thermostat Market: Impact Analysis
- 3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For the Global Smart Thermostat Market: Impact Analysis
- 3.3. Market Opportunities
- 3.3.1. Opportunities For the Global Smart Thermostat Market: Impact Analysis
- 4. Competitive Landscape
- 4.1. Competitive Dashboard – Smart Thermostat Market Revenue and Share by Manufacturers
- Smart Thermostat Product Comparison Analysis
- Top Market Player Ranking Matrix
- 4.2. Key Company Analysis
- 4.2.1. Carrier Global Corp.
- 4.2.1.1. Overview
- 4.2.1.2. Product Portfolio
- 4.2.1.3. Financial Analysis (Subject to Data Availability)
- 4.2.1.4. SWOT Analysis
- 4.2.1.5. Business Strategy
- 4.2.2. ecobee Technologies ULC
- 4.2.2.1. Overview
- 4.2.2.2. Product Portfolio
- 4.2.2.3. Financial Analysis (Subject to Data Availability)
- 4.2.2.4. SWOT Analysis
- 4.2.2.5. Business Strategy
- 4.2.3. Emerson Electric Co.
- 4.2.3.1. Overview
- 4.2.3.2. Product Portfolio
- 4.2.3.3. Financial Analysis (Subject to Data Availability)
- 4.2.3.4. SWOT Analysis
- 4.2.3.5. Business Strategy
- 4.2.4. Honeywell International Inc. (Resideo Technologies, Inc.)
- 4.2.4.1. Overview
- 4.2.4.2. Product Portfolio
- 4.2.4.3. Financial Analysis (Subject to Data Availability)
- 4.2.4.4. SWOT Analysis
- 4.2.4.5. Business Strategy
- 4.2.5. Johnson Controls International plc
- 4.2.5.1. Overview
- 4.2.5.2. Product Portfolio
- 4.2.5.3. Financial Analysis (Subject to Data Availability)
- 4.2.5.4. SWOT Analysis
- 4.2.5.5. Business Strategy
- 4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration
- 5. Global Smart Thermostat Market Sales Analysis by Connectivity Technology ($ Million)
- 5.1. Wireless Network
- 5.2. Wired Network
- 6. Global Smart Thermostat Market Sales Analysis by Installation Type ($ Million)
- 6.1. New Installation,
- 6.2. Retrofit Installation
- 7. Global Smart Thermostat Market Sales Analysis by Vertical ($ Million)
- 7.1. Residential
- 7.2. Commercial
- 7.2.1. Retail
- 7.2.2. Offices
- 7.2.3. Education Institutes
- 7.2.4. Hospitality centers
- 7.2.5. Hospitals
- 7.2.6. Other
- 7.3. Industrial
- 8. Regional Analysis
- 8.1. North American Smart Thermostat Market Sales Analysis – Connectivity Technology | Installation Type | Vertical | Country ($ Million)
- Macroeconomic Factors for North America
- 8.1.1. United States
- 8.1.2. Canada
- 8.2. European Smart Thermostat Market Sales Analysis – Connectivity Technology | Installation Type | Vertical | Country ($ Million)
- Macroeconomic Factors for Europe
- 8.2.1. UK
- 8.2.2. Germany
- 8.2.3. Italy
- 8.2.4. Spain
- 8.2.5. France
- 8.2.6. Russia
- 8.2.7. Rest of Europe
- 8.3. Asia-Pacific Smart Thermostat Market Sales Analysis – Connectivity Technology | Installation Type | Vertical | Country ($ Million)
- Macroeconomic Factors for Asia-Pacific
- 8.3.1. China
- 8.3.2. Japan
- 8.3.3. South Korea
- 8.3.4. India
- 8.3.5. Australia & New Zealand
- 8.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And others)
- 8.3.7. Rest of Asia-Pacific
- 8.4. Rest of the World Smart Thermostat Market Sales Analysis – Connectivity Technology | Installation Type | Vertical | Country ($ Million)
- Macroeconomic Factors for the Rest of the World
- 8.4.1. Latin America
- 8.4.2. Middle East and Africa
- 9. Company Profiles
- 9.1. Bosch Thermotechnology Corp.
- 9.1.1. Quick Facts
- 9.1.2. Company Overview
- 9.1.3. Product Portfolio
- 9.1.4. Business Strategies
- 9.2. Cielo WiGle Inc.
- 9.2.1. Quick Facts
- 9.2.2. Company Overview
- 9.2.3. Product Portfolio
- 9.2.4. Business Strategies
- 9.3. CLIMOTE
- 9.3.1. Quick Facts
- 9.3.2. Company Overview
- 9.3.3. Product Portfolio
- 9.3.4. Business Strategies
- 9.4. Centrica Hive Ltd. (Hive)
- 9.4.1. Quick Facts
- 9.4.2. Company Overview
- 9.4.3. Product Portfolio
- 9.4.4. Business Strategies
- 9.5. Carrier Global Corp.
- 9.5.1. Quick Facts
- 9.5.2. Company Overview
- 9.5.3. Product Portfolio
- 9.5.4. Business Strategies
- 9.6. ecobee Technologies ULC
- 9.6.1. Quick Facts
- 9.6.2. Company Overview
- 9.6.3. Product Portfolio
- 9.6.4. Business Strategies
- 9.7. Emerson Electric Co.
- 9.7.1. Quick Facts
- 9.7.2. Company Overview
- 9.7.3. Product Portfolio
- 9.7.4. Business Strategies
- 9.8. Empowered Homes Inc. (Mysa)
- 9.8.1. Quick Facts
- 9.8.2. Company Overview
- 9.8.3. Product Portfolio
- 9.8.4. Business Strategies
- 9.9. Eve Systems GmbH
- 9.9.1. Quick Facts
- 9.9.2. Company Overview
- 9.9.3. Product Portfolio
- 9.9.4. Business Strategies
- 9.10. EME Delaware Inc. (Lux)
- 9.10.1. Quick Facts
- 9.10.2. Company Overview
- 9.10.3. Product Portfolio
- 9.10.4. Business Strategies
- 9.11. Honeywell International Inc. (Resideo Technologies, Inc.)
- 9.11.1. Quick Facts
- 9.11.2. Company Overview
- 9.11.3. Product Portfolio
- 9.11.4. Business Strategies
- 9.12. Johnson Controls International plc
- 9.12.1. Quick Facts
- 9.12.2. Company Overview
- 9.12.3. Product Portfolio
- 9.12.4. Business Strategies
- 9.13. Lennox International Inc.
- 9.13.1. Quick Facts
- 9.13.2. Company Overview
- 9.13.3. Product Portfolio
- 9.13.4. Business Strategies
- 9.14. MRCOOL, LLC
- 9.14.1. Quick Facts
- 9.14.2. Company Overview
- 9.14.3. Product Portfolio
- 9.14.4. Business Strategies
- 9.15. NETATMO
- 9.15.1. Quick Facts
- 9.15.2. Company Overview
- 9.15.3. Product Portfolio
- 9.15.4. Business Strategies
- 9.16. Resideo Technologies Inc.
- 9.16.1. Quick Facts
- 9.16.2. Company Overview
- 9.16.3. Product Portfolio
- 9.16.4. Business Strategies
- 9.17. Rheem Manufacturing Company
- 9.17.1. Quick Facts
- 9.17.2. Company Overview
- 9.17.3. Product Portfolio
- 9.17.4. Business Strategies
- 9.18. SALUS Controls Plc
- 9.18.1. Quick Facts
- 9.18.2. Company Overview
- 9.18.3. Product Portfolio
- 9.18.4. Business Strategies
- 9.19. Schneider Electric SE
- 9.19.1. Quick Facts
- 9.19.2. Company Overview
- 9.19.3. Product Portfolio
- 9.19.4. Business Strategies
- 9.20. Siemens AG
- 9.20.1. Quick Facts
- 9.20.2. Company Overview
- 9.20.3. Product Portfolio
- 9.20.4. Business Strategies
- 9.21. Savant Technologies LLC (GE Lighting)
- 9.21.1. Quick Facts
- 9.21.2. Company Overview
- 9.21.3. Product Portfolio
- 9.21.4. Business Strategies
- 9.22. Sinopé Technologies
- 9.22.1. Quick Facts
- 9.22.2. Company Overview
- 9.22.3. Product Portfolio
- 9.22.4. Business Strategies
- 9.23. Tado GmbH
- 9.23.1. Quick Facts
- 9.23.2. Company Overview
- 9.23.3. Product Portfolio
- 9.23.4. Business Strategies
- 9.24. Trane Technologies Company, LLC
- 9.24.1. Quick Facts
- 9.24.2. Company Overview
- 9.24.3. Product Portfolio
- 9.24.4. Business Strategies
- 9.25. Vine Connected Corp.
- 9.25.1. Quick Facts
- 9.25.2. Company Overview
- 9.25.3. Product Portfolio
- 9.25.4. Business Strategies
- 9.26. Vivint, Inc.
- 9.26.1. Quick Facts
- 9.26.2. Company Overview
- 9.26.3. Product Portfolio
- 9.26.4. Business Strategies
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