Smart HVAC Controls Market Analysis

Smart HVAC Controls Market Analysis

Thermostat demand is expected to grow rapidly in the smart HVAC controls market with a CAGR of over 15% due to an extensive use in cold countries. Low costs and the easy installation of stand-alone thermostats make these devices popular in countries including Germany, UK, and Russia. Easy configuration and integration with other smart home appliances have encouraged users to implement these systems on a large scale. However, despite a high growth, the revenue contribution of these products is low as most homes are expected to have a single thermostat by 2024 and most users in countries including China, Japan, and India do not use these.
 

Smart air vents shipments in the market are expected to grow during the forecast timespan owing to an increasing user demand to control air flow in the rooms. These devices regulate heating & cooling air flow on a room-to-room basis, t increasing efficiency and comfort. These devices are being widely adopted as they are cheaper and aesthetically pleasing as compared to the zoning systems and give users a complete control of the airflow in their homes.
 

Residential HVAC controls market is expected to gain momentum due to the growing use of these systems integrated with smart homes. Residential users are installing these systems due to ease-of-use and accessibility. Increased energy efficiency of these devices has encouraged users to implement such systems in households due to a reduction in energy expenses. The adoption of smartphones to control these devices through apps is further aiding the popularity growth of these devices in residential applications.
 

Increasing regulations pertaining to the development of energy-efficient buildings are accelerating the market growth in commercial applications. Commercial applications are expected to constitute about 40% of the total smart HVAC controls market in 2017. Commercial buildings require centralized HVAC controls due to regular in & out-flow of people in the buildings. Furthermore, the growing trend of smart building technology and building automation in commercial spaces will propel the industry growth.
 

The Germany market valued at over USD 590 million in 2017 is expected to grow rapidly owing to a high focus on energy management and efficiency. Several users in the country are increasingly adopting systems that enable them to control sunlight, humidity, and temperature to enhance the in-house comfort. Continuous improvements in building structures and widespread technology adoption in the country are expected to propel the demand for these products over the forecast timespan. Furthermore, Europe may also witness a significant growth as it aims at mandating energy-efficient systems by promoting policies such as tax credits combined with the increased penetration of technology-based buildings.
 

The Asia Pacific smart HVAC controls market is expected to grow significantly over the forecast timespan, particularly in the air conditioning segment due to the adoption of the latest technologies including the Variable Refrigerant Flow (VRF) technology. Governing bodies are implementing several measures such as using smart HVAC to address concerns such as global warming. These bodies are encouraging manufacturers to make the systems more energy efficient, propelling the industry growth.