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Smart Home Appliances Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global smart home appliances market was valued at USD 83.6 billion in 2022 and is projected to expand at a CAGR of 10.5% from 2023 to 2030. The growth of the market is attributed to the growing trend of connected home automation and the increasing popularity of smart home appliances. Consumers are now more conscious about their home environment, leading to the rising demand for connected home appliances. Furthermore, the rapid growth of the Internet of Things (IoT) and the increasing penetration of broadband services across the globe are driving the demand for smart home appliances.
The home security segment is expected to be the fastest-growing segment during the forecast period. The growing demand for home security systems due to increasing thefts and burglaries is driving the segment’s growth. Furthermore, the availability of smart home security systems, such as smart locks, door locks, and video doorbells, is expected to propel the segment’s growth. Additionally, the integration of artificial intelligence (AI) and facial recognition in home security systems are further fuelling the segment’s growth.
The increasing adoption of voice-controlled smart home appliances is driving the demand for the market. These appliances are equipped with voice-controlled assistants such as Amazon Alexa and Google Assistant, which enable users to control the appliances with voice commands. For instance, in April 2021, Amazon launched its new Echo Show 10 device which is powered by its AI-based Alexa voice assistant. Additionally, the growing demand for smart home appliances from the hospitality industry is expected to further fuel the market growth. For instance, in April 2022, Google launched its Google Nest Hub Max, a voice-activated smart display device, to make it easier for hotel guests to control their hotel room features.
The increasing demand for energy-efficient appliances is propelling the demand for the market. The rising demand for energy-efficient appliances is due to their ability to reduce electricity consumption and lower energy bills. Furthermore, the growing trend of connected home automation is fueling the demand for smart home appliances. Moreover, the rising disposable income and rapid urbanization are increasing the demand for these appliances. Additionally, the increasing popularity of smart homes among consumers is further driving the demand for the market.
Product Insights
The smart home appliances segment is anticipated to expand at the fastest CAGR of 17.3% during the forecast period. The growth is attributed to the increasing adoption of smart home appliances among consumers due to their convenience and automation features. Moreover, technological advancements in home appliances and their increasing integration with artificial intelligence (AI) and voice-controlled assistants are further fueling the demand for these products. According to an article published by Consumer Technology Association, in November 2020, sales of smart home appliances increased by around 8% year-on-year.
The smart refrigerators segment is expected to expand at a CAGR of around 16.5% over the forecast period. This growth can be attributed to the rising demand for energy-efficient refrigerators and growing adoption of smart technology in the kitchen. According to an article published by Euromonitor International, in February 2020, sales of smart refrigerators in the US increased by around 17% year-on-year. Furthermore, increasing disposable income and rising trends of online shopping are also driving the demand for smart refrigerators.
Distribution Channel Insights
The online segment is anticipated to expand at the highest CAGR of 14.2% over the forecast period. Online stores such as Amazon and Alibaba have provided a platform for smart home appliances manufacturers to reach their target customers. The convenience of online shopping, the availability of discounts and offers, and the presence of customer reviews have been driving the online smart home appliances market. Additionally, the growing popularity of smart homes has also contributed to the growth of the online segment.
The supermarkets and hypermarkets segment is expected to capture the major share of over 45.3% in 2022. Supermarkets and hypermarkets are the primary sources for consumers to shop for smart home appliances. The availability of a wide range of products and the convenience of one-stop shopping experience have been driving the growth of this segment. Additionally, the presence of knowledgeable sales staff and the ability to compare the products have been further propelling the growth of this segment.
Type Insights
The connected devices segment accounted for the highest market share of 75.7% in the year 2022. This is due to the growing demand for connected appliances such as washing machines, refrigerators, air conditioners, and others. The growing trend of smart homes and the increasing use of connected technologies in home appliances are driving the demand for connected products. Additionally, increasing investments in research and development activities to enhance the capabilities of connected home appliances are further contributing to the growth of this segment.
The non-connected devices segment is anticipated to expand at the highest CAGR of 16.3% over the forecast period. This is attributed to the increasing demand for non-connected home appliances, such as irons, vacuum cleaners, and others. Furthermore, the growing trend of energy-efficient appliances and the increasing awareness among consumers regarding their benefits are contributing to the growth of this segment. Moreover, the availability of innovative features in non-connected home appliances is also driving the segment’s growth.
Regional Insights
North America is expected to dominate the market, backed by the presence of a large number of players in the region. The growth can be attributed to the presence of a large number of tech-savvy customers and the growing demand for automated home appliances in the region. Additionally, the presence of major vendors, such as Apple, Amazon, and Google, is expected to fuel the growth of the smart home appliances market in the region.
The Asia Pacific region is expected to witness the fastest growth over the forecast period. The growth in this region is mainly driven by the increasing disposable income, growing technological advancements, and the presence of a large population. Furthermore, the rising awareness regarding the benefits of automated home appliances, such as energy efficiency, convenience, and safety, is expected to further drive the growth of the smart home appliances market in the region.
Financial Projections
In this section of the smart home appliances products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your smart home appliances products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a smart home appliances products business comes from the sale of smart home appliances. Here you will find a list with a description of each of the products and other possible sources of profit such as the sale of accessories and related services.
Projecting Expenses
In this section, all the regular expenses related to keeping the smart home appliances products business running will be described. The list of operating expenses includes manufacturing costs, inventory and storage, wages, marketing and advertising, utilities, insurance policies, shipping and delivery, and others.
Key companies & market share insights
Some of the key companies operating in the smart home appliances market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In July 2022, Samsung launched the SmartThings Wifi, a new range of Wi-Fi enabled appliances that can be easily connected to a home network.
– In August 2022, Nest launched the Nest Hub Max, which is a voice-controlled device that can control various connected home appliances.
– In September 2022, LG launched the ThinQ, a range of smart home appliances that can be easily connected to the internet.
Some of the prominent players in the smart home appliances market include:
– Samsung Electronics Co., Ltd.
– Nest Labs Inc.
– LG Electronics Inc.
– Whirlpool Corporation
– Honeywell International Inc.
– Panasonic Corporation
– Haier Group Corporation
– Electrolux AB
– Robert Bosch GmbH
– GE Appliances
Global Smart Home Appliances Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global smart home appliances market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Audio & Video Appliances
– Lighting Appliances
– Security Appliances
– Heating & Cooling Appliances
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Automated
– Semi-Automated
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Market Drivers?
[A]: Increasing consumer demand for efficient and convenient home automation solutions, growing awareness about the advantages of smart home appliances, and rising disposable incomes are some of the key market drivers for the global smart home appliances market.
[Q]: What are the Challenges Faced by the Market?
[A]: High cost of installation, lack of standards for the technology, and privacy and security concerns are some of the major challenges faced by the global smart home appliances market.
[Q]: What Opportunities are Present in the Market?
[A]: Increasing support from governments in the form of subsidies and tax rebates, increasing demand for energy-efficient solutions, and rising popularity of voice-enabled services are some of the major opportunities present in the global smart home appliances market.
[Q]: What are the Key Players in the Market?
[A]: Key players in the global smart home appliances market include Amazon, Inc., Apple, Inc., Google, Inc., Haier Group Corporation, Honeywell International, Inc., LG Electronics, Inc., Robert Bosch GmbH, Samsung Electronics Co., Ltd., Schneider Electric SE, and Siemens AG.
[Q]: What are the Trends Driving the Market?
[A]: Growing demand for connected appliances and increasing adoption of artificial intelligence (AI) in home appliances are some of the key trends driving the global smart home appliances market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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