PUNE, India — The global smart thermostat market is projected to generate revenue of more than $1.3 billion by 2019, according to a report by Sandler Research.

The report states that one of the main challenges faced by the smart thermostats market is the high initial cost, which exceeds that of conventional thermostats. The market for smart thermostats is still at its nascent stage, but research analysts expect the market to grow exponentially, as consumers become more aware of the advantages and features of smart thermostats.

The concept of smart homes, which connects household systems such as HVAC equipment, lighting systems, television sets, computers, entertainment systems, security devices, and camera systems, is rapidly gaining popularity among consumers around the world. The increase in demand for smart homes is expected to drive the demand for smart thermostats during the forecast period.

According to the report, the key players in the global smart thermostat market are Carrier Corp., ecobee, Honeywell, Ingersoll-Rand, and Nest Labs. Other prominent vendors in the market include Computime, Emerson, Energate, Radio Thermostat Co. of America, and Venstar.

The report segments the market by product into standalone smart thermostats, networked smart thermostats, and learning smart thermostats. By technology, the market segmentation includes Wi-Fi, ZigBee, and others. Wi-Fi technology contributed the largest share in 2014, accounting for almost 38 percent of the overall market share, and is closely followed by ZigBee technology.

By region, North America, which is home to many of the smart thermostat manufacturing companies, represented about a 59 percent share of the market in 2013 and was the largest market for smart thermostats. Market demand for smart thermostats is expected to continue to rise steadily in North America.

More information on the report is available here.

Publication date: 10/26/2015

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