Due to rising costs linked with housing values and mortgage rates, homeowners increasingly engage in home remodeling or home improvement projects to change their traditional household structure. Owner equity has doubled since 2014 due to rising home values. This follows a pattern where homeowners feel wealthier and are more likely to spend money on house improvements. Consumers focus on making the kitchen the focal point in their homes, leading to renovation and decoration in kitchens in accordance with current trends and products. Consumers' need for technological advancements, coupled with shifting social dynamics, has fueled the growth of smart kitchen appliances. In addition, the growing culture of avid cooks, seasoned hosts, and busy families encourages consumers to invest in smart kitchen appliances for greater convenience and hassle-free cooking. An increase in home furnishings and fixtures in countries of North America and Europe is predicted to benefit the market for smart kitchens. Home renovation spending by Americans was anticipated to increase by 8.7% from 2019 to 2020, reaching USD 439.9 billion, according to the Home Improvement Research Institute (HIRI). Additionally, homeowners are spending money on improvements to enhance their quality of life rather than merely performing basic maintenance. According to Houzz, an online home-remodeling platform, remodeling projects for kitchens and bathrooms rose by 40% in June 2020, suggesting the potential for numerous smart kitchen appliances. Furthermore, the growing number of millennials purchasing homes also drives the popularity of modern kitchens. Millennials invest in home renovation projects annually more than other age groups, according to research from HomeAdvisor.
Smart kitchen products are priced higher due to features such as multi-functionality and huge sizes. On the other hand, the exorbitant prices of these products prevent the middle-income group from purchasing them. Furthermore, the high rate of electricity consumption by smart kitchen appliances results in high electricity costs in both commercial and domestic kitchens. Commercial kitchens use a significant amount of energy, around 2.5 times more per square foot than any other commercial facility, according to the U.S. Environmental Protection Agency (EPA). According to Direct Energy, most electric ovens use 3,000 watts of power on average. As a result, energy-intensive smart electric kitchen gadgets result in high electricity expenses for restaurants and building owners. Moreover, greater efficiency shown by electric cooktops encourages consumers to opt for these products, which increases electricity consumption. According to the U.S. Department of Energy, gas cooktops led to 40% efficiency, while electric cooktops and induction cooktops resulted in 74% and 84% efficiency, respectively, which in turn consumes more electricity and power, negatively affecting the market. In addition, considering the convenience and benefits of a smart refrigerator, consumer demand is weak in major developing countries. According to a study by the Institute for International Business, only 2% of Austrian households own a smart refrigerator. The low percentage is due to high expense, the perception of a low need for smart appliances, and a long-life cycle of general refrigerators. According to survey respondents, smart refrigerators are priced at a high premium. For instance, most Samsung refrigerators with cameras cost over USD 3,645. Additionally, the survey indicated that just 11% of participants are willing to pay a premium of 50% or more for a refrigerator.
Online portals, including e-commerce platforms and company websites, offer various growth opportunities for the market. Consumers prefer e-commerce websites because of convenience, greater variety, and cost benefits. Consumers can compare a wide range of products on websites and make an informed decision. Moreover, products purchased through e-commerce websites are delivered to the doorstep, thus offering convenience to customers. Whirlpool Corporation collaborated with VTEX in May 2021 to strengthen its digital commerce strategy. VTEX is a multinational tech business that offers a global, fully integrated end-to-end commerce solution. Similarly, in May 2021, LG Electronics USA debuted "The Upgrade," a live shopping event that allowed spectators to interact with a direct-to-consumer platform and buy LG products. With this, LG Electronics increased its online retail footprint. Many people are purchasing products from various e-commerce websites, particularly in emerging economies like China and India. Additionally, many websites provide steep discounts all year long, making expensive items like smart refrigerators, smart ovens, cookware, and dishwashers more affordable. Such promotions draw a big consumer base, boosting sales of smart kitchen appliances. Soon, rising disposable income and changing consumer lifestyles is expected to drive the demand for kitchen fittings and accessories. For instance, according to a report published by the World Travel & Tourism Council, in 2019, global leisure spending was USD 4,692 billion. This indicates a shifting consumer preference toward a quality lifestyle, which is expected to drive the demand for smart kitchen appliances to build a modular and equipped kitchen. As a result, various manufacturers have ample opportunities to launch innovative products to support market growth. Furthermore, there is a rising disagreement in the U.S. over the usage of natural gas in new residences and commercial structures. Whether natural gas qualifies as a green energy source is a contentious issue among regulators. As a result, states have passed legislation opposing the piping of natural gas to residences and commercial structures. Consumers are ultimately gravitating towards smart products such as smart induction and vitro-ceramic built-in smart hobs for the long run.
This section will provide insights into the contents included in this smart kitchen appliances market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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