Smart Home Appliances Market Size, Share & Trends Analysis Report By Product (Washing Machines, Refrigerators, TVs, Air Purifiers), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

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.

Smart Home Appliances Market Trends

The increasing concern for home security and rising demand for the adoption of technology is the major driver for the smart home appliances market. Smart security systems such as smart locks, smart video doorbells, smart cameras, and smart hubs such as Google Home, Amazon, Echo, and Samsung SmartThings Hub are gaining popularity among consumers. These hubs are expected to drive the growth of the market during the forecast period.

Improving standards of living are making numerous consumers invest in smart household items. Demand for luxury goods such as air conditioners, washing machines, and others is also increasing. Moreover, the presence of smart consumer electronics vendors such as LG, Panasonic, Samsung, and Electrolux are seeing great potential in the smart consumer electronics market. These international brands are strengthening their distribution channels through joint ventures with local manufacturers which are expected to drive the market expansion during the forecast period.

Smart home appliances are completely dependent on interconnection and use standard communication protocols. The market share of smart home appliances is influenced by the network and IoT technologies. Device malfunctions or disconnections are a major factor that challenge the course of the development of this market. The cost of installations and the cost of switching are other factors restraining the growth of the market. Therefore, smart device companies are partnering with software and network technologies to reduce device malfunctions.

Product Insights

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.

Distribution Channel Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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.

Recent Developments

• On 6 June 2022, Apple announced a new home app for its HomeKit smart home platform at WWDC. The new app is to arrive with iOS 16 later this year constituting a complete new design. Apple has rebuilt the app from the ground up making it more suitable especially for homes with multiple accessories.The navigation has also been modified to make it convinient to find, organize, and control devices

• On 7 June 2022, Samsung Electronics announced the global launch of SmartThings Home Life, offering consumers worldwide a more holistic smart home experience. Samsung’s SmartThings Home Life introduced the launch at Bespoke Home 2022 and is set to launch in 97 countries later in June

• In Jan 2020, Panasonic collaborated with Drop, the leading smart kitchen platform to makethe lives of home cookseasy byusing their appliances. The purpose of collaboration wasto introduce customized navigation and advanced features like resizing recipes or offering substitutions for missing ingredients

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

Smart Home Appliances Market Report Scope

Smart Home Appliances Market Segmentation

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