Enjoy complimentary customisation on priority with our Enterprise License!
The smart home appliances market is estimated to grow at a CAGR of 14.45% between 2022 and 2027. The size of the market is forecast to increase by USD 39.91 billion. The growth of the market depends on several factors, including product innovation in terms of technology, performance, features, and design, periodic revisions in energy efficiency standards, and the growing adoption of wireless connecting devices and IoT.
This report extensively covers market segmentation by product (smart washing machines and dryers, smart air conditioners, smart refrigerators, smart microwave ovens, and smart dishwashers), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The growing adoption of wireless connecting devices and IoT are notably driving the market growth, although factors such as the high cost of smart home appliances may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing adoption of wireless connecting devices and IoT are notably driving the market growth. Global adoption of wireless connectivity devices is rising, which is a major component fueling the market's expansion. Connectivity has become crucial in modern life, particularly since it enables consumers to perform necessary tasks remotely. Mobile devices like smartphones and tablets can reach or use wireless technologies like Wi-Fi, Bluetooth, and ZigBee. Manufacturers can differentiate their products from others by including these technologies in home appliances (like air conditioners), which appeals to the tech-savvy customer market. In order to create radio communication with smartphones and to bring them close together, NFC is used in many smart washing machines.
Beyond smartphones, a variety of home appliances are now being given wireless connectivity so they can exchange and gather data. Because IoT, which combines digital and wireless technology, is becoming more and more common, a lot of smart home appliances have undergone a significant transformation. This tendency to create more sophisticated smart connected appliances will probably influence IoT vendors. Therefore, such factors are expected to propel the growth of the global market during the forecast period.
The introduction of additional features in smart home appliances is an emerging trend in the market. Consumers cannot be forced to choose smart home appliances by connectivity alone. Customers want more features to help with connectivity. The majority of consumers who live in small homes struggle with having enough space, so manufacturers are working to develop appliances with connectivity features in addition to sleek designs and other alluring features. For instance, LG Electronics and Mitsubishi Electric are focusing on introducing smart air conditioner accessories.
Instead of producing smart air conditioners, startups are also attempting to make smart accessories or gadgets. In addition to connecting to a smartphone app, this smart equipment automates the home climate control with intelligent features, such as location-based activation, timer settings, and others, saving up to 40% on heating and cooling costs. Therefore, due to the prominent features of these new technologies, the focus market is anticipated to grow significantly during the forecast period.
The high cost of smart home appliances is a major challenge impeding market growth. Due to their high price, manufacturers find it challenging to persuade consumers to replace their standard home appliances with smart connected models. As a result, businesses face a challenge in developing products that are affordable for the mass market, particularly in emerging nations where consumers are price-conscious. The majority of product offerings are geared toward the high-end consumer market, which only accounts for a small portion of the market for smart home appliances.
The fact that smart connected appliances are currently not being widely adopted contributes to their high price. For instance, Samsung's Family Hub refrigerators are among the priciest and range in price from USD 3,299 to USD 4,599. Not all consumers are willing to spend this much money, especially if their standard refrigerators and washing machines are still in good working order. Therefore, such factors will likely prove to be an obstacle to market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Smart Home Appliances Market Customer Landscape
Vendors 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.
Miele and Cie. KG - The company offers smart home appliances such as TVs, refrigerators, and washing machines. The key offerings of the company include smart home appliances such as commercial air conditioning appliances.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the smart washing machines and dryers segment will be significant during the forecast period. Wi-Fi, Bluetooth, and NFC are all used to connect smart washing machines to smart grids. The ability to control a smart washing machine remotely is one of its main benefits. Such washing machines don't have particularly high price-performance ratios either. As smart washing machines are energy-efficient and support the use of smart grid technology, numerous governments have recently encouraged their use. These washing machines make it easier to schedule wash cycles automatically using time-based electricity programs. As a result, washing is made possible during off-peak times, when energy costs are lower. These washing machines help the user modify process times and wash/dry cycle lengths.
Get a glance at the market contribution of various segments Request a PDF Sample
The smart washing machines and dryers segment was valued at USD 8.34 billion in 2017 and continued to grow until 2021. Customers' smartphones or tablets can connect to smart dryers. These dryers have sensors that can identify times when energy usage is at a minimum. As a result, they are regarded as economical and energy-efficient technology. An app notifies the user of cycle timings, energy usage, and other pertinent information. Such intelligent dryers are distinguished by features like remote control, real-time status monitoring, or individualized drying cycles. The LG Electronics Smart ThinQ Dryer features sophisticated troubleshooting manuals and self-diagnosis tools. Most of the world's use of these dryers is in North America and Europe. Hence, all these factors will boost the growth of the market segment during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 32% 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.
Over the next five years, North America is expected to see a rise in the popularity and uptake of smart home technology, with the US showing the highest demand due to technological advancements and rising consumer awareness of the advantages of using smart appliances. Due to the US's strict government regulations and standards regarding energy usage, there will also likely be a high demand for washing machines that are more energy-efficient and smartly connected.
Due to the presence of numerous manufacturers of smart thermostats in North America, including Nest Labs and Honeywell International, the market for these devices is steadily growing. The development of smart home appliances like smart air conditioners that have built-in connectivity could be hampered by this factor. The demand for energy-efficient smart home appliances, such as smart air conditioners with built-in connectivity, will, however, generally rise due to ongoing revisions of the US government's strict regulations and standards governing energy usage.
Another major factor propelling the growth of the smart home appliances market in North America is the rising demand for energy efficiency. Additionally, the high-income group makes up a larger pool of consumers in the US than in developing nations, which encouraged vendors to concentrate on developing and introducing such products. Such products are also anticipated to promote the expansion of the targeted market.
The COVID-19 pandemic had a detrimental effect on the market's expansion in 2020. However, due to the protracted lockdown in North America, a number of market participants devised efficient strategies to advertise home appliances online by the end of 2020, assisting the market in overcoming the pandemic's negative effects by gaining traction. Furthermore, due to intensive vaccination efforts conducted throughout the region in 2021, lockdown limitations were eased. Also, the resumption of operations in offline end-user facilities in addition to the online sector, as a result, has increased the demand for smart home appliances in the region. Therefore, over the forecast period, these factors are anticipated to fuel the expansion of the North American smart home appliances market.
The 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.
Technavio categorizes the global smart home appliances market as a part of the global household appliances market within the global household durables industry. The parent market, the global household appliances market covers revenue generated by manufacturers of electric household appliances and related products. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
|
Smart Home Appliances Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
182 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 14.45% |
|
Market growth 2023-2027 |
USD 39.91 billion |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
14.15 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 32% |
|
Key countries |
US, Canada, China, Germany, and UK |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
AB Electrolux, Apple Inc., BSH Hausgerate GmbH, General Electric Co., Godrej Appliances, Haier Smart Home Co. Ltd., Koninklijke Philips NV, MIDEA Group, Miele and Cie. KG, Mitsubishi Electric Corp., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Videocon Industries Ltd., Whirlpool Corp., Xiaomi Communications Co. Ltd., Robert Bosch GmbH, Sharp Corp., and LG Electronics Inc. |
|
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, and Market condition analysis for the 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
