Smart Home Appliances Market size is expected to grow rapidly between 2021 and 2027 due to the increasing level of internet penetration, rapid advancement in technology, wireless communication, and increasing use of smartphones. The rising use of Internet of Things (IoT) in home appliances, such as refrigerators, washing machines, and kitchen appliances, such as coffeemakers, cooktops, and hotpots, will provide greater market growth opportunities.
The interconnectivity of smart home appliances enables users to monitor and control them through smartphones, laptops, tablets, or game consoles, supporting the market expansion. These appliances provide several benefits because of which their demand has risen significantly over the past years. The connected home appliances make routine work convenient, improve appliance functionality, and offer enhanced flexibility in managing home from remote locations They also offer maximum home security and increased energy efficiency level, positively influencing their demand in the market.
The increasing level of urbanization and growing of disposable income among the population in developed & developing economies have resulted in a greater demand for the market. According to a survey conducted by Security.org in 2020, around 80 million U.S. households intended to purchase a new type of smart device over the next 12 months. The growing inclination of consumers toward technologically advanced connected appliances will fuel the industry growth.
The expensive nature of smart home appliances and central home automation systems is a restraining factor for the market. These connected appliances also require professional installation, which further adds to the high initial costs. Several low-income countries with limited resources do not have access to fast internet owing to poor infrastructure and have limited knowledge regarding smart appliances. The poor socioeconomic factors in underdeveloped and in a few developing countries will hinder the market progression.
Rapid advancement in technology and innovation by major players will drive the demand for the smart home appliances market. The deployment of IoT will become easier to implement during the forecast period impelled by technological advancements. The growth during the forecast period will be driven by the development of new sensors, reliable connectivity, and high computing power. The sensor technology embedded in home appliances will continue to become cheaper, more advanced, and widely available. Applications, such as Artificial Intelligence and real-time analytics, will shift activities from local devices toward cloud computer solutions. The advent of 5g will bring new applications for users such as augmented and virtual reality. Additionally, increasing government support to industry leaders will provide new opportunities for the market.
The COVID-19 pandemic has severely affected the growth of all major industries attributed to a worldwide lockdown. The supply chain of the market was adversely affected, which resulted into a significant decline in sales during the fiscal year 2020. The markets in the U.S. and China, have been majorly hampered owing to the ban of Chinese products as a result of the on-going trade war between the U.S. and China. However, the U.S. market has witnessed a recovery in demand due to the economic revival packages provided by the federal government after easing of lockdown restrictions.
The smart refrigerator segment will grow at a high rate during the forecast period. The interconnectivity of smart refrigerators with other home appliances offers high convenience to users. Manufacturers of smart refrigerators offer an app that can be installed on a mobile phone or other devices for enhanced connectivity.
Smart refrigerators also assist to save money and energy by allowing users to see what is in their fridge in real-time from any remote location. This feature prevents unnecessary spending on food, store, and watch recipes, and prevent maintenance problems. It warns the owner about maintenance or breakdown issues by sending alert messages on their smartphones, further stimulating their market demand. The AI integrated into these appliances monitors potential problems such as temperature drops or poor air flow before they cause major issues.
The offline segment is poised to hold a high share in terms of revenue and the online channel segment is set to register a high growth rate during the forecast period. The offline retail distribution of smart home appliances is more popular as it is more convenient to customers compared to online shopping. In offline retail shopping, the consumers face no discrepancies regarding the quality and price of the products. In case of offline sales, customers get proper guidance by company sales representatives and can physically inspect the quality and features of the product. The availability of a wide range of products provided by various brands and proper guidance about the products will foster the segment growth.
North America smart home appliances market region is predicted to register exponential growth during the forecast period. The factors contributing to the growth are high level of disposable income, a shift in preference toward smart home appliances, enhanced lifestyle, and rising concerns about climate change.
The market is dominated by major players such as BSH Hausgerate GmbH, Samsung Electronics Co. Ltd., Whirlpool Corp., Panasonic Corp., LG Inc., Haier Co. Ltd., Philips N.V., General Electric Co., Electrolux AB, and Miele & Cie. KG. These participants are focusing on mergers, acquisitions, and launch of new products to expand their global footprint and meet consumer demand.
Market, By Product
Smart Washing Machine
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