The global smart home appliances market size was valued at USD 32.30 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2027. Growing penetration of smart homes, particularly in developing as well as developed regions, across the globe is driving the demand for various smart home appliances. In addition, rising home improvement projects in western countries are paving the way for different smart products for residential applications. Increasing spending on home improvement projects or home remodeling is boosting the product demand owing to rising home and mortgage prices. In addition, rapid developments and advancements in the IT infrastructure and wireless communication enable easy assimilation of the home appliances compatible with mobile devices, such as smartphones, laptops, and tablets. As a result of which, it allows the consumers to control and optimize the operations of the refrigerators from remote locations.
According to the Leading Indicator of Remodeling Activity (LIRA), home improvement spending has risen 6% annually in the last three years since 2015. In addition, owners spent an additional average of USD 2000 on home remodeling projects in 2016 compared to 2015. This scenario is projected to increase the adoption of smart home appliances. The real estate industry is anticipated to witness growth on account of the growing demand for smart and connected homes and home automation systems, which form an important part of smart homes. The upsurge in the need for push-button control and energy preservation, shifting demographic preferences, and need to safeguard the global environment from polluting effluents, such as greenhouse gasses and toxic wastes, are expected to result in significant market growth.
In terms of revenue, smart washing machines dominated the market with a share of 31.9% in 2019. This is attributed to greater penetration of smartphones and a wireless internet connection, which is helping increase the adoption rate of smart appliances, such as smart washing machines, across the residential sectors. The rising technological revolution towards the development of the smart homes category is creating higher demand for connected appliances, such as smart washers, as a source of luxury and convenience. Increased adoption of the automatic washing process as an essential part of everyday housekeeping activity among Europeans has generated growth prospects in the region.
The smart air purifiers category is expected to expand at the fastest CAGR of 17.9% from 2020 to 2027. Increased attention to the hygiene factor across the globe, especially as a resultant of the COVID-19 pandemic, is fueling the growth of smart air purifiers. According to the World Health Organization (WHO), 9 out of 10 people breathe contaminated air containing a high level of pollutants. It states that outdoor and indoor air pollution leads to around 7 million premature deaths every year, out of which 3.8 million people die as a result of exposure to indoor air pollution. Degrading air quality across regions and rising awareness regarding the advantages of using air purifiers are anticipated to drive the smart air purifiers segment over the forecast period.
In terms of revenue, offline dominated the market with a share of 64.5% in 2019. This is attributed to the higher preference for convenience, specialty, and branded stores. An offline distribution channel is gaining prominence as it facilitates the consumers to have a first-hand look at the products, which helps in the easy inspection of the quality and specifications. With the help of traditional brick and mortar stores, the brands have been able to create a unique experience for the customers. Moreover, the presence of an in-store associate helps the customers in understanding the product better, thereby making an appropriate selection. The availability of a wide range of products offered by different brands and the ability to compare the prices and product attributes are some of the factors that are expected to have a positive impact on the segment growth.
The online distribution channel is expected to witness the fastest growth over the forecast period. Rapidly growing digitalization and expansion of e-commerce, especially among the young and millennial population, at the global level, are driving the online sales of the product across the world. Additionally, a busy lifestyle, coupled with ease of transactions, will drive the online sales of the product. This, in turn, is expected to increase the revenue generated from this distribution channel over the forecast period. However, the availability of alternative options, such as e-commerce websites and start-up e-retailers, has been out powering the growth of the company portals segment. Discount prices, festive sales, and availability of a wide range of products on e-commerce websites are expected to result in a slow rate of sales through company portals.
Asia Pacific dominated the market with a share of 42.5% in 2019. This is attributed to increasing internet penetration and technology advancements in developing economies, such as China and India. According to the China Internet Network Information Center (CNNIC), internet penetration in China is 59.3%. New product developments across the industry are paving the way for higher adoption of smart appliances. For instance, in December 2018, Xiaomi Global Community launched a fully automatic smart washing machine in China.
Europe is anticipated to be the potential regional market in the future on account of the higher adoption of smart appliances in the region. Higher indulgence of consumers in buying energy-efficient products across the EU countries is ramping up the demand for smart appliances in this region. The smart home market in Europe is estimated to account for more than 30.0% in the years to come, thereby driving the demand for smart appliances for domestic applications.
The global market is characterized by high competition. Companies are focusing on expanding their product lines and are adopting innovative technologies in order to meet consumer demand for advanced smart products. In addition, an increasing number of companies entering the industry as well as strategizing on new product launches is fueling the market growth. Some of the prominent players in the smart home appliances market include:
Samsung
BSH
GE
Whirlpool
LG
Electrolux
Panasonic
Miele & Cie
Philips
IRobot
Ecovacs
Neato
Haier
Midea
Hisense
Report Attribute |
Details |
Market size value in 2020 |
USD 36.5 billion |
Revenue forecast in 2027 |
USD 92.72 billion |
Growth Rate |
CAGR of 14.1% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, distribution channel, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; MEA |
Country scope |
U.S.; U.K.; China; India; Japan; Brazil; South Africa |
Key companies profiled |
Samsung; BSH; GE; Whirlpool; LG; Electrolux; Panasonic; Miele & Cie; Philips; IRobot; Ecovacs; Neato; Haier; Midea; Hisense |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global smart home appliances market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Smart Refrigerators
Smart Washing Machines
Smart Air Purifiers
Smart TVs
Others
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Offline
Online
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Europe
The U.K.
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East & Africa
South Africa
b. The smart home appliances market size was estimated at USD 32.30 billion in 2019 and is expected to reach USD 36.54 billion in 2020.
b. The smart home appliances market is expected to grow at a compound annual growth rate of 14.1% from 2020 to 2027 to reach USD 92.72 billion by 2027.
b. Asia Pacific region dominated the smart home appliances market with a share of 42.50% in 2019. This is attributable to the increasing internet penetration and technological advancements in developing economies such as China and India is anticipated to fuel the regional product demand.
b. Some key players operating in the smart home appliances market include Samsung, BSH, GE, Whirlpool, LG, Electrolux, Panasonic, Miele & Cie, Philips, IRobot, Ecovacs, Neato, Haier, Midea, Hisense.
b. Key factors that are driving the market growth included growing penetration of smart homes particularly in developing as well as developed regions, rising prominence for home improvement projects in western countries, increasing spending on home improvement projects or home remodeling, and rapid developments and advancements in the IT infrastructure and wireless communication.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."