London, 14 March 2016: Technavio, the independent tech-focused global research firm, has published a report on the global ZigBee-enabled smart thermostat market, which is envisaged to grow profoundly at a CAGR of over 67% by 2020.
Global ZigBee-enabled smart thermostat market by geography
Source: Technavio
An interesting factor driving the growth prospects for this market will be the rising need for low-energy wireless technology. ZigBee, a device that operates on the IEEE 802.15.4 standard, is a wireless communication technology that has added benefits of efficient power management and ease of installation. It is the best substitute for high-power-consuming batteries and can connect to a wide array of devices in smart homes. Over the years, Bluetooth and Wi-Fi wireless technologies have been gaining traction in the market, but due to their high battery consumption, consumers and service providers have started to opt for alternative wireless technologies like ZigBee to improve energy efficiency.
“Government authorities play a critical role in driving smart thermostat sales in the northern hemisphere. According to the US Environmental Protection Agency (EPA), smart thermostats can cut power consumption by 20% when used with remote-controlled devices. This is because users can continuously monitor their energy consumption patterns and switch their thermostats on or off in line with their requirements. Furthermore, the sale of ZigBee-enabled smart thermostats is also fostered by the energy ratings conferred on smart thermostats by government regulators and private certification agencies,” says Sunil Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
“The recent increase in the inclination for smart homes will also spur growth until 2020. A smart home connects domestic appliances that include lighting systems, air conditioning units, television sets, and computers using electronic communication units. The market for smart homes is expected witness huge growth by 2020. This increase in the preference for smart homes will lead to a rise in the number of smart home connected devices.”
Market drivers –
- Rise in ZigBee Alliance membership
- Emergence of various ZigBee standards to support IoT devices
- Need for low-energy wireless technology
- Increase in demand for energy-efficient HVAC equipment
- Rise in power prices
Market trends –
- Increase in inclination for smart homes
- Rise in diversity of IoT standards
- Promotion of smart thermostats by government authorities
- Emergence of DIY systems
Key market vendors –
- Carrier
- Centralite Systems
- Control4
- Ecobee
- Energate
- Fidure
- Honeywell
- Leviton
To define the market circumstances in the next 3-4 years, Technavio analysts have conducted in-depth analysis of the impact of market drivers, challenges, and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on the Global ZigBee-enabled Smart Thermostat Market 2016-2020, please send an e-mail to media@TechNavio.com.
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