Market Scenario
Global smart home appliances market generated revenue of US$ 59.69 billion in 2022 and is projected to reach valuation of US$ 154.45 billion by 2031 at a CAGR of 11.63% during the forecasted period, 2023-2031.
The global smart home appliances market is mainly gaining demand as more people use the internet and buy smartphones. As wireless solutions become more readily available, the market for smart appliances is likely to see significant growth in the coming years. One of the key drivers behind this substantial growth is the rising demand for convenience, energy efficiency, and connectivity in households worldwide. Smart home appliances offer a wide range of benefits, including remote control, automation, and integration with voice assistants and mobile devices. These features not only enhance the overall convenience for homeowners but also contribute to energy conservation and cost savings.
In the last few years, the Internet of Things (IoT) has witnessed an increased integration across smart home apps, and is anticipated to become more adaptable in the future to provide users with more control and improve the functionality of appliances. According to a survey conducted in 2021 by the National Kitchen & Bath Association, 83% of consumers in North America are more likely to buy smart appliances.
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Key Dynamics of Smart Home Appliances Market
Drivers
Rapid Technological Advancements
Continuous advancements in technology are driving the growth of the smart home appliances market. Innovations such as artificial intelligence (AI), Internet of Things (IoT), and voice assistants have revolutionized the way we interact with our homes. These technologies enable seamless connectivity, automation, and remote control of various appliances, making homes smarter and more efficient. The increasing integration of these technologies into appliances like thermostats, refrigerators, security systems, and entertainment devices is propelling the market forward.
Growing Demand for Energy Efficiency
With a rising emphasis on sustainability and energy conservation, there is a growing demand for energy-efficient appliances. Smart home appliances offer advanced features like energy monitoring, smart scheduling, and remote control, allowing users to optimize their energy consumption. These appliances can automatically adjust settings based on usage patterns and external factors in the global smart home appliances market, resulting in reduced energy waste and lower utility bills. The increasing awareness and adoption of energy-efficient solutions are driving the demand for smart home appliances.
Restraints
Privacy and Security Concerns
As the number of connected devices in homes increases, so does the potential for privacy and security vulnerabilities. Smart home appliances often collect and transmit sensitive data, such as personal preferences, usage patterns, and even audio or video recordings. The storage and transfer of this data raise concerns about unauthorized access, data breaches, and invasions of privacy.
Consumers in the global smart home appliances market may be hesitant to adopt smart home appliances due to the fear of their personal information being compromised. The industry needs to prioritize robust security measures, including encryption, authentication protocols, and regular software updates, to address these concerns and build trust among consumers. Implementing transparent data privacy policies and giving users control over their data can help alleviate these concerns and drive wider adoption of smart home appliances.
Market Segmentation
Offering Analysis:
The global Smart Home Appliances market is categorized into Products and Services based on their offerings. In 2022, the Products segment held the largest share in this market.
To be considered "smart," these appliances rely on internet connectivity to provide advanced features and functions. Without an internet connection, these appliances would lose their smart capabilities. However, there were instances in some regions where the lack of a stable internet network hindered the reception of smart devices a few years ago.
Nevertheless, the advent of the internet has brought about significant changes. With the growth of internet penetration, smart appliances have become more accessible. Additionally, there has been a substantial increase in the number of smartphone users in recent years. This has made it incredibly convenient for consumers to monitor and control their smart appliances using smartphones or tablets. The ability to connect all home appliances to the internet through a single interface presents a significant advantage.
Product Type Analysis:
The global smart home appliances market is segmented into smart kitchen appliances, smart household appliances, smart lighting, smart security, consumer electronics, and others. In 2022, the smart household appliances segment held the largest market share and is expected to remain dominant. The smart washing machine and dryer segment is projected to experience significant growth during the forecast period.
Factors driving this growth include the rise in smart homes, increased adoption of smart networks, improved research and development infrastructure, and enhanced product availability. Smart washing machines are connected through Bluetooth, NFC, or Wi-Fi, enabling remote management. Governments are encouraging the use of energy-efficient smart washing machines, which also support smart grid technology. Key players' introduction of new products in the smart home appliance category will further drive market growth.
Technology Analysis:
Based on technology, the global smart home appliances market is categorized into two segments: wire and wireless. In 2022, the wireless segment emerged as the dominant force, capturing the largest market share.
The wireless technology in smart home appliances has witnessed remarkable growth and adoption in recent years. It offers various advantages, such as flexibility, convenience, and ease of installation. Wireless connectivity allows smart appliances to connect seamlessly to home networks, enabling communication and control through mobile devices and smart hubs. This wireless connectivity empowers users to remotely monitor and manage their appliances, providing a higher level of convenience and automation in their daily lives.
Furthermore, wireless technology eliminates the need for complex wiring installations, making it a more cost-effective and adaptable solution. It also facilitates the integration of multiple smart devices within a smart home ecosystem, creating a cohesive and interconnected environment.
With the continuous advancements in wireless technology, including Wi-Fi, Bluetooth, Zigbee, and Z-Wave, the potential for smart home appliances to enhance the overall living experience is expanding rapidly. As a result, the wireless segment is expected to maintain its growth trajectory in the foreseeable future, driving innovation and enabling further integration of smart technologies within households.
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Control Type Analysis:
Based on control type, the global smart home appliances market is segmented into touchpad/ touchscreen, analogue, button/knobs, digital, electromechanical, electronics, and others. Among these, the button/knobs segment dominated the highest segmental share in 2022.
Users can use the faders on a MIDI keyboard, similar to those on a mixing console, to control a mixdown in a DAW. A knob is basically a different kind of fader. Rotate a parameter in the clockwise direction to alter its value.
A MIDI controller is any piece of software or hardware that sends and receives data from the Musical Instrument Digital Interface to MIDI-enabled devices. Typically, this is done to initiate sounds and control the parameters of an electronic music performance.
For digital audio workstations, certain MIDI controllers are paired with specific software. A more extensive scope of control choices has been added to the first MIDI particular.
Sales Channel Analysis:
Based on sales channel, the global smart home appliances market is divided into offline and online segments. In 2022, the offline segment claimed the largest market share and is expected to maintain its leadership throughout the forecast period.
Offline sales channels encompass various entities such as wholesalers, retailers, value-added resellers, and third-party cellular network operators. Market players with a strong presence in offline channels possess well-established distribution networks and infrastructure that allow them to offer a diverse range of services to customers. It is worth noting that some fraudulent activities exist where both online and offline channels are utilized to sell counterfeit or low-quality smart appliances.
The offline distribution channel in the smart home appliances market is gaining popularity due to its ability to provide customers with a hands-on experience to evaluate the quality and specifications of products. Traditional brick-and-mortar stores have played a crucial role in enabling brands to create unique shopping experiences for their customers, fostering trust and customer satisfaction.
While online sales channels have grown significantly in recent years, the offline segment still maintains a substantial market share. The combination of physical presence and personalized interactions in offline stores remains an appealing aspect for many consumers. However, it is important for brands to adopt an omnichannel approach to cater to the preferences of a diverse customer base and ensure a seamless shopping experience across both offline and online channels.
End-User Analysis:
Based on end-user, the global smart home appliances market is segmented into residential and commercial. Among these, the residential segment held the highest segmental share in 2022 and is anticipated to maintain its lead throughout the forecasting period.
The Leading Indicator of Remodeling Activity (LIRA) indicates that annual spending on home improvements has increased by 6% since 2015. In addition, homeowners spent an average of $2,000 more on home renovation projects in 2016 than in 2015. As a result of this scenario, it is anticipated that the use of smart home appliances will increase.
The rising demand for smart and connected homes and home computerization frameworks, which make up a significant portion of smart homes, are expected to drive growth in the land industry. The need to protect the global environment from polluting effluents like greenhouse gases and toxic wastes, shifting demographic preferences, and the growing demand for push-button control and energy conservation are all driving significant market expansion.
Regional Analysis:
Asia Pacific dominates the global smart home appliances market, holding the highest market share and exhibiting a robust Compound Annual Growth Rate (CAGR) of 12.13%. In 2022, the market in the region was valued at US$26.31 billion and is projected to reach US$65.77 billion by 2031.
Several factors contribute to the growth of the smart home appliances market in Asia Pacific. The region's rising disposable income, prevalence of dual-income households, and evolving lifestyles have spurred the demand for AI-based smart home appliances. China, in particular, has emerged as a significant market for smart home appliances, owing to its large consumer base and thriving home appliance industry.
The Chinese market for domestic appliances is now worth billions of dollars, driven by increasing consumer spending on cutting-edge home devices and consumer electronics. Moreover, economic projections from the Organization for Economic Co-operation and Development (OECD) indicate that both China and India are poised for a substantial increase in per capita income, potentially reaching seven-fold growth by 2060.
These positive economic indicators, along with the growing emphasis on smart technology and the adoption of advanced appliances, create a favorable landscape for the expansion of the smart home appliances market in Asia Pacific. Industry players are actively targeting this region, recognizing its immense growth potential and the opportunities it presents for market penetration and business expansion.
List of Key Companies Profiled:
Segmental Overview
By Offering
By Product Type
By Technology
By Control Type
By Sales Channel
By End-User
By Region
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 59.59 Billion |
| Expected Revenue in 2031 | US$ 143.97 Billion |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD Bn) |
| CAGR | 11.63% |
| Segments covered | By Offering, By Product Type, By Technology, By Control Type, By Sales Channel, By End User, By Region |
| Key Companies | AB Electrolux, GE Appliances, General Electric Co., Koninklijke Philips NV, LG Electronics Inc., Robert Bosch GmbH, Midea, Mitsubishi Electric, Neato, Panasonic Corp., Samsung Electronics, Sharp Corp., Whirlpool, Xiaomi Corp., Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
The Smart Home Appliances Market was valued at US$ 59.69 Billion in 2022.
The Smart Home Appliances market has been expected to grow with a CAGR of 11.63% during the forecast year.
Data privacy concerns among end-users and compatibility issues with Smart Home Appliances is hindering the market growth in the present as well as in the future.
Increasing penetration of internet and smartphones across the world are driving the Smart Home Appliances Market.
The demand for smart appliances such as refrigerators, washing machines, and more has increased due to the COVID-19 pandemic, as most of the population is working from home, thus spending more time at home requires many appliances that can complete tasks fast as compared to traditional methods.
Varying markets have different norms or environmental regulations, which might have an impact on a company's profitability. Even within a country, states can have disparate environmental and liability legislation. In the United States, for example, Texas and Florida have separate culpability rules in the event of an accident or an environmental disaster. Similarly, many European governments provide beneficial tax incentives to businesses who invest in the renewable energy sector.
The real estate industry is anticipated to witness growth on account of the growing demand for smart and connected homes and home automation systems, which form an important part of smart homes.
Asia Pacific is leading the market. This is attributed to increasing internet penetration and technology advancements in developing economies, such as China and India. According to the China Internet Network Information Center (CNNIC), internet penetration in China is 59.3%. New product developments across the industry are paving the way for higher adoption of smart appliances. For instance, in December 2018, Xiaomi Global Community launched a fully automatic smart washing machine in China.
Key players in the Smart Home Appliances market include competitors such as AB Electrolux, GE Appliances, General Electric Co, Koninklijke Philips NV, LG Electronics Inc, Robert Bosch GmbH, Midea, Mitsubishi Electric, Neato, Panasonic Corp., Samsung Electronics, Sharp Corp., Whirlpool, Xiaomi Corp, and Other Prominent Players.
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