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Thermostat Market Size To Reach $16,803.0Mn By 2030

Thermostat Market Size To Reach $16,803.0 Million By 2030 | CAGR: 17.9%

May 2025 | Report Format: Electronic (PDF)

Thermostat Market Growth & Trends

The global thermostat market size is anticipated to reach USD 16,803.0 million by 2030 and is expected to grow at a CAGR of 17.9% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is witnessing significant growth driven by the increasing demand for energy-efficient solutions and the integration of smart home technologies. As more consumers embrace connected devices, smart thermostats are gaining popularity for their convenience and automation.

Market opportunities are expanding with the increasing adoption of smart home technologies, demand for energy-efficient solutions, and government incentives for sustainability. Innovations like AI integration, remote control features, and enhanced automation offer significant potential. In addition, the growing trend of home renovations and new constructions presents further growth prospects.

The market is shaped by various regulatory frameworks that promote energy efficiency and environmental sustainability. In the U.S., the Energy Star program, managed by the EPA, sets performance standards for energy-efficient products, including thermostats, encouraging manufacturers to create energy-saving technologies. In the European Union, the Ecodesign Directive mandates ecological requirements for energy-consuming products to reduce energy usage and environmental impacts. In India, the Bureau of Energy Efficiency (BEE) enforces the Standards & Labeling Program, which provides energy efficiency ratings for appliances like air conditioners, helping consumers make informed decisions and encouraging energy conservation.

Top players in the market, such as Google and Honeywell, are focusing on innovation and expanding their product offerings. These companies are investing in research and development to introduce an advanced thermostat. Strategic acquisitions and partnerships with manufacturers and retailers also help these players expand their market reach. For instance, in November 2024, NRG Energy and Renew Home partnered to distribute 650,000 AI-enabled thermostats in Texas by 2035, aiming to reduce electricity demand by 1 gigawatt, equivalent to the consumption of 200,000 homes. Utilizing Google Cloud's AI and machine learning, the initiative will optimize HVAC usage, enhancing grid resilience and lowering energy costs.

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Thermostat Market Report Highlights

Based on product, the smart thermostat segment dominated the market in 2024 due to the rising adoption of smart home technologies and the increasing demand for energy-efficient solutions. Artificial intelligence and connectivity advancements have significantly improved the user experience, making thermostats more intuitive and efficient.
Based on applications, the new construction segment led the market in 2024 due to rising demand for smart, energy-efficient buildings. Builders increasingly integrate smart thermostats during construction to meet regulatory standards, improve energy ratings, and attract tech-savvy buyers.
Based on end use, the commercial segment led the market in 2024. The growing demand for energy-efficient solutions in businesses drives the adoption of smart thermostats. These devices provide centralized control, automation, and substantial cost savings on energy bills. Their integration with building management systems makes them well-suited for large-scale office applications, retail environments, and the hospitality sector.
Based on distribution channel, the wholesale stores segment led the market in 2024. These stores serve both residential and commercial sectors, enabling large-scale purchases and installations, making them especially beneficial for contractors and businesses seeking efficient procurement options.
Based on connectivity technology, the wired segment led the market in 2024. Wired thermostats are preferred in commercial and industrial settings for their consistent performance, ensuring uninterrupted operation. In addition, advancements in wired connectivity technologies enhance integration capabilities, increasing adoption in environments requiring secure, robust connections.
Based on region, North America dominated the market in 2024, driven by strong technological infrastructure, high adoption of smart home systems, and the presence of leading manufacturers.
The market's players include Alphabet (Google Nest), Honeywell International, Emerson Electric, Ecobee, Johnson Controls, Siemens, Trane Technologies, Carrier Corporation, Zen Ecosystems, Bosch Thermotechnology, Legrand, Centrica Hive, Control4 Corporation, Vivint, and Tado.
In October 2024, Building36 launched Smart Thermostat HQ, which offers cellular connectivity and easy installation. Designed with contractors in mind, HQ is the easiest, most reliable way to connect with and stay connected with homeowners.

Thermostat Market Segmentation

Grand View Research has segmented the global thermostat market based on product, application, end use, distribution channel, connectivity technology, and region:

Thermostat Product Outlook (Revenue, USD Million, 2018 - 2030)