Smart Home Appliances Market: Overview
The market size for smart home appliances was USD 30.5 billion in 2021, and it is projected to grow at a CAGR of 8.4 percent during the forecast period. Product demand is driven by factors such as the proliferation of smart homes, increasing home improvement projects, and the rapid development of IT and wireless communications. Rising home improvement projects in Western countries are paving the way for various smart products for home applications. Increased spending on home improvement projects and renovations is also boosting product demand due to rising home and mortgage prices. With the further development of electronics and communication technology, the market for intelligent home appliances is expected to grow dynamically. Factors such as increasing purchasing power and changes in people's lifestyles have increased the demand for intelligent home appliances worldwide. Rising income levels and changes in people's lifestyles are expected to boost market growth. Improving consumer lifestyles, especially in urban areas, complemented by rising disposable incomes, has boosted sales of smart home devices.
Technological innovations embedded in housing will complement industry growth. Manufacturers are continuously developing and modifying their smart home devices to accommodate the simpler lifestyles of tech-savvy consumers. For instance, in 2018, Siemens AG (Germany) added several new features such as ventilation, district heating and air conditioning (HVAC) control to the smart home appliances market trends. Additionally, key market players focus on collaborations to expand the smart home appliance industry. For instance, in August 2018, Electrolux partnered with Google to expand its kitchen products to include Google Assistant integration, allowing users to control kitchen appliances with voice commands.
Rapid technological development and a modern lifestyle are expected to drive the adoption of smart home appliances. A tech-savvy consumer knows the latest technology and is willing to invest in smart devices. Increasing consumer purchasing power will be a key driver of demand. The big brands offer a wide range of products. For instance, in July 2021, Utec announced his Bolt WiFi. Bolt WiFi is a secure and advanced smart lock that offers security and convenience with built-in WiFi, Bluetooth and a door sensor for added security. 5-in-1 keyless entry gives you full control over your door from anywhere.
Smart Home Appliances Market: COVID-19 Impact
The global pandemic is impacting different industries in different ways. Likewise, it is also influencing the growth of the global smart home market. Product sales declined during the initial period of Covid 19. The pandemic has disrupted the smart appliance market's supply chain and reduced construction-related projects. At the same time, government guidelines have closed several organizations. Several factors influenced the growth of the market during the Covid period. It influences the share of the industry's smart home appliance market forecast. Some investors have refused to participate in investments due to Covid. But then the industry changes its measures and adopts factors that improve the state of the industry. As a result, the market size has recovered from the pandemic and is generating revenue.
Smart Home Appliances Market: Drivers
Increase availability of Wireless Connectivity Solutions to Accelerate Market Growth
Wireless solutions reduce cable usage and help avoid retrofitting existing homes, providing end-user flexibility. Various new wireless protocols are being developed to improve the operation of smart devices. The emergence of ZigBee and Z-Wave, along with existing technologies such as Bluetooth and Wi-Fi, could bring significant technological advancements to the smart device market. Controlled by the ZigBee Alliance, The ZigBee protocol is a low-performance specification based on the IEEE 802.15.4 standard for personal area networks. Z-Wave can be used for all kinds of wireless applications. It can connect sensors in home security systems, locks, smoke detectors and other smart devices. With the help of wireless solutions, users can control and monitor their smart home devices anytime and anywhere, thus reducing energy consumption and saving the cost and time required for the task. In addition, users can monitor the functionality of these devices with their smartphones and tablets without being near them. For instance, Wi-Fi-equipped refrigerator from LG Electronics (South Korea) features an indoor camera that allows users to see what's inside the refrigerator without physically opening the door. Additionally, users can use the refrigerator display to track food stored in the refrigerator and sync that information with their Smartphone. Therefore, wireless connectivity solutions are expected to play a major role in the growth of this market.
Integrating New Technologies Such as AI Into Smart Devices To Boost Market Growth
AI technology makes products think like people. They help us understand how the human brain thinks, learns, makes decisions, and works. AI is very popular in today's world. It has applications in various healthcare, manufacturing, banking, and automotive industries. Smart home appliance manufacturers are working to incorporate AI into their products to make them more personalized and convenient for consumers. AI can help identify usage patterns, user preferences, and additional technology opportunities. Helps identify gaps in smart device usage and functionality. Companies active in the field of smart home appliances are therefore allowed to develop their products in a future-oriented way further. For instance, LG Electronics (Korea) has launched a new AI-enabled proactive customer care for personalized support and notifications. Purchasing his specific LG device, the user can avail of this free proactive customer service through his LG ThinQ app. This app is available for both iOS and Android phones.
Smart Home Appliances Market: Restraints
End User Privacy Concerns to Hinder Market Growth
Internet users and smartphone users are concerned about the possibility of unauthorized use of personal information such as names, email addresses, postal addresses, dates of birth and credit card numbers. In addition, smart devices are most often controlled via company-developed smartphone apps. Companies collect consumer data through these apps, raising consumer privacy concerns. Privacy concerns may therefore hamper the growth of the smart device market.
Smart Home Appliances Market: Segment Overview
Washing Machines Dominate the Market Owing to Technological Advancements and the Focus of Major Market Players on Eco-Friendly Appliances
Technological advancements such as IoT-enabled smart kitchen appliances in refrigerators are expected to boost the market's growth during the forecast period. For instance, AI-enabled refrigerators coupled with high disposable income are providing the boost needed for market growth. Moreover, key market players focus on eco-friendly devices as customer demand drives the market growth during the forecast period. For instance, companies like Whirlpool and Samsung focus on green devices with high energy value to increase market penetration.
The Wi-Fi Technology Category Dominates Market, With Numerous Manufacturers Developing Devices Primarily Based on Wi-Fi Technology
Wi-Fi technology is estimated to hold the largest share in the smart device market during the forecast period. Reasons for this include the development of devices based on Wi-Fi technology by companies such as Whirlpool (USA), Samsung Electronics (South Korea), LG Electronics (South Korea) and Electrolux (Sweden). With home automation growing, devices such as smart washers, dryers, refrigerators, dishwashers and air conditioners are now equipped with Wi-Fi capabilities.
Smart Home Appliances Market: Regional Landscape
North America will Dominate Market due to Presence of Technically Advance Infrastructure and Increasing Investment in Smart Grid Projects
Increased renovation activity in North America and rebuilding of older commercial and residential infrastructure spaces drive the market. The significant growth of the North American market is due to increasing investment in smart grid projects and people's adoption. High demand for smart devices from the home sector is one of the main factors leading to North America's dominant position in the market. Additionally, various US government grants for smart grid projects are driving market growth in the region. For instance, in January 2022, Honeywell and FREYR Battery signed a deal. Depending on feasibility, it allows FREYR to leverage Honeywell's key technology offerings in the manufacturing process, including integrated automation, field measurement and safety solutions.
The market in Asia Pacific is expected to grow at the highest CAGR in the market. Asia Pacific is home to major smart device makers such as Samsung Electronics (Korea), Panasonic (Japan), Haier Smart Home (China), and LG Electronics (Korea), which are always focused on innovation. China, Japan, South Korea and India are potential growth markets for smart devices. Asia-Pacific dominates the smart home appliance market due to rising consumer disposable income and spending on smart home appliances. Moreover, rising purchasing power is expected to boost demand for smart home devices over the forecast period, leading to increased internet penetration and homeownership. Factors such as the region's rapid urbanization and continued modernization of technological infrastructure will create lucrative growth prospects for the global connected consumer electronics market across the Asia-Pacific region. The Asia-Pacific region is expected to account for a large value share of the global connected consumer electronics market and the purchasing power of customers in the region.
Global Smart Home Appliances Market: Competitive Landscape
Samsung Electronics will launch a new bespoke French door refrigerator in March 2022, bringing personalization and convenience to more kitchens. The new bespoke French door refrigerator combines customizable design with space-saving and food-saving features. Built inside the refrigerator to reduce the risk of contamination, the beverage center provides quick and easy access to refreshing cold, naturally flavored water. The dual auto ice maker produces both cubed ice and ice bites. They are smaller than ice cubes and can cool drinks faster. It can produce 2.4 kg of ice per day and store up to 4.5 kg3 of ice, double that of other ice machines. The sliding cover facilitates the ice scoop and prevents the ice from being exposed to the air when the open freezer door. Moreover, in October 2020, Xiaomi and Huami (China), for instance, announced their partnership. Huami supports Xiaomi in developing chips and algorithms for smart devices. Under the terms of the agreement, the two companies will work on researching and developing AI chips and algorithms for wearable devices.
Few of the players in the Smart Home Appliances Market include General Electric Company, Panasonic Corporation, Electrolux AB, LG Electronics Inc., Samsung Electronics Co., Ltd., Koninklijke Philips N.V., Apple Inc., Haier Electronics Group Co., Ltd., Miele & Cie. KG, BSH Hausgerate GmbH, and Whirlpool Corporation
Global Smart Home Appliances Market is Segmented as Below:
By Product Type
Key Elements Included In The Study: Global Smart Home Appliances Market
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