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The Smart Plug Market share was valued at USD 2,187.29 million in 2020 and showed positive growth during the forecast period. The smart plug market is classified into End-user (residential and commercial), Connectivity (wi-fi and bluetooth), and Geography (North America, Europe, APAC, Middle East and Africa, and South America) and geography North America, Europe, APAC, Middle East and Africa, and South America.
The global smart plug market size is estimated to grow by USD 7,487.13 million, accelerating at a CAGR of 29.7% between 2023 and 2027.
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The competition from built-in smart appliances is one of the major smart plug market trends shaping the market growth. The penetration of built-in smart appliances is expected to increase during the forecast period. In the current market scenario, these smart electronic appliances have a niche position because they have a price premium attached to them. However, as technology adoption increases, these appliances are expected to become more affordable and will likely give tough competition to smart plugs.
The prominent vendors operating in the market are D-Link Corp., Insteon, iSmart Alarm Inc., Leviton Manufacturing Co. Inc., and more. There is intense competition among these established vendors in the market, which restricts the entry of new players. The adoption of built-in smart appliances will reduce the need for smart plugs, which will severely hinder the global smart plug market growth during the forecast period.
Growing demand for smart homes is a key driver boosting the market growth. There is an increased demand for smart homes globally owing to the growing interest of home buyers in technology-driven solutions. Smart homes consist of built-in smart appliances that are priced at a premium because they hold a niche position in the consumer electronics market. Therefore, built-in smart appliances are not always financially viable options for a majority of the population, especially in underdeveloped or developing countries. Therefore, the demand for smart plugs is increasing as they are cost-effective alternatives for built-in smart appliances.
The growing demand for energy-efficient and remotely monitored household appliances will drive the sales of smart plugs, which, in turn, will fuel the growth of the global smart plug market during the forecast period.
The high cost of smart plugs is a key challenge hindering the smart plug market. The adoption of smart plugs is impeded by their high cost and the extended time required to realize a return on investment. Despite appearing relatively inexpensive, a smart plug can be 8-10 times pricier than a standard plug socket, making it challenging for manufacturers to persuade consumers to make the switch. These products primarily target a niche high-end consumer segment, limiting their reach. To expand their market presence and attract a broader customer base, vendors are shifting their focus towards the affordable luxury segment.
Smart plug technology demands substantial research and development investment, and widespread global deployment of smart grid technology is necessary for their optimal use. As smart plug adoption remains limited, their costs remain high. Vendors are striving to create more budget-friendly options and establish brands that fulfill consumer needs. Consequently, the elevated cost of smart plugs is likely to adversely affect the growth of the global smart plug market in the forecast period.
The residential segment is estimated to witness significant growth during the forecast period. One of the main factors that is significantly contributing to the growth of the residential segment is the increasing demand for smart appliances. There is an increasing adoption of smart plugs among the middle-class population as built-in smart appliances are expensive. Therefore, smart plugs are a cost-effective substitute for built-in smart appliances.
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The residential segment was the largest segment and was valued at USD 1,261.02 million in 2017. Thus, there is significant growth in the smart plugs market as energy-efficient smart home products in the residential segment. Another factor that is fuelling the adoption of smart plugs in the residential sector is the government mandates for energy efficiency in several types of household appliances. Additionally, some of the key advantages offered by smart plugs in the residential segment include remote monitoring, energy control, scheduling, and more. Hence, factors such as energy efficiency offered by smart plugs are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American smart plugs market is set for substantial growth due to rising smart home adoption, particularly in the US, where almost 69% of households use smart home technology. The US, a global smart home leader, is witnessing a rapid adoption of built-in smart devices, driving the demand for smart plugs. Additionally, increased construction activities in the US are boosting the need for smart plugs to monitor and reduce power consumption, especially with high-income individuals and a substantial population of early technology adopters. This makes the region an attractive market for advanced home appliances. Consequently, the North American smart plug market is expected to expand significantly in the forecast period.
In 2020, the COVID-19 pandemic negatively impacted the demand for smart plugs in North America as lockdowns and social distancing measures forced the closure of retail stores that sold these devices. However, by 2021, as COVID-19 restrictions began to ease with vaccine availability, retail stores reopened, resulting in increased sales of smart plugs. The resumption of normal business activities in 2022 and the continued easing of lockdown measures led to a boost in smart plug sales, driving the North American smart plug market's growth in the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ibroadlink- The company offers smart plug such as BroadLink SP4D smart plug socket that supports both 2.4G and 5G dual band WiFi.
Technavio has detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The smart plug market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Smart Plug Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.7% |
Market growth 2023-2027 |
USD 7,487.13 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
17.03 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BroadLink, ConnectSense, D Link Corp., EDIMAX Technology Co. Ltd., Halonix Technologies Pvt Ltd., Havells India Ltd., Hon Hai Precision Industry Co. Ltd., Indiegogo Inc., Insteon Technologies LLC, ITEAD Intelligent Systems Co. Ltd., Lenovo Group Ltd., Leviton Manufacturing Co. Inc., Panasonic Holdings Corp., Revogi Innovation Co. Ltd., Satechi LLC, Syska Led Lights Pvt. Ltd., TP Link Corp. Ltd., Vesync Co. Ltd., Wipro Ltd., and Xiaomi Communications Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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