The global smart home appliances market is expected to be valued at USD 37.73 billion in 2023. Product demand is being driven by factors, such as the growing penetration of smart homes, rising home improvement projects, and rapid developments in IT and wireless communication.
The overall demand for smart home appliances is projected to grow at a CAGR of 7.9% between 2023 and 2033, totaling around USD 80.71 billion by 2033.
| Data Points | Key Statistics |
|---|---|
| Smart Home Appliances Market Value (2023) | USD 37.73 billion |
| Smart Home Appliances Market Projected Value (2033) | USD 80.71 billion |
| Smart Home Appliances Market CAGR (2023 to 2033) | 7.9% |
The integration of technological advancements in residential spaces is fueling market expansion. Manufacturers are incessantly enhancing and customizing smart home appliances to cater to the preferences of tech-savvy consumers.
Brands are focusing on smart automation, incorporating advanced features such as digital controls, voice-activated lighting, and AI-driven programmable functions, which are particularly appealing to millennial customers.
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The global demand for smart home appliances is projected to spike at a CAGR of 7.9% during the forecast period (2023 to 2033), reaching a total of USD 80.71 billion in 2033, according to a report from Future Market Insights (FMI).
From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 7.0%.
Rapid technological developments and modern lifestyles are expected to help push the adoption of intelligent appliances at home.
In the current scenario, the upward trend of technical gadgets and growing awareness of the latest technologies is projected to boost the demand for smart home appliances over the forecast period.
As per the recent analysis by Future Market Insights, North America captures the leading share in the smart home appliances market, expected to account for nearly 38.3% share in 2022.
The region is anticipated to maintain its dominance over the forecast period, by increasing expenditure on a relaxed lifestyle and soaring emphasis on the standard of living.
Besides, the growing number of renovation projects and reconstruction of old commercial as well as residential infrastructure spaces are driving the market.
Various exempts from the United States government for smart grid projects are another growth driver of the smart appliances market growth in this region, where the market in the United States of America captured a share of about 32.9% in 2022.
Several manufacturers are making hefty investments to develop advanced technologies for home appliances to make them more energy-friendly and cost-effective. This, in turn, is likely to further propel the demand for smart home appliances in the coming years.
In terms of market revenue, Europe is the second-dominant region, accounting for nearly 33.4% share of the smart home appliances market.
As per the recent analysis, the region is estimated to grow at a significant rate throughout the forecast period.
Germany and the United Kingdom are likely to capture a substantial share, backed by the surging demand for convenience products at home such as Alexa. These products are equipped with cutting-edge technologies like the Internet of Things and Artificial Intelligence.
In accordance with the FMI study, the market in the United Kingdom is expected to advance at a growth rate of 8.5% from 2023 to 2033, while the smart home appliances industry in Germany amassed a share of 6.1% in 2022.
The introduction of advanced novel technologies in the European market is making homes smarter. New service providers, like energy and insurance firms, are also getting involved in this expanding market.
Energy, cost savings, security, and convenience are some of the prominent drivers of the European smart home appliances market. Smart home applications are entrusted to be more energy saving-oriented in Europe than in other geographical regions.
The growing adoption of home security devices or integrated systems with security functions to protect cybersecurity bolsters the demand for smart home appliances. In Europe, especially in Germany, consumers are wary of data breaches and hacks.
Based on geographies, Asia Pacific is estimated to be progressing at a faster pace, clocking a steady CAGR during the forecast period. Additionally, the continuing smart city initiatives across countries like India, China, and Japan are contributing to the adoption of smart home devices in the region.
The rising investments from global players in the region and increasing demand from developing economies, such as China and India, for innovative technologies, are other major factors propelling the growth of the regional market of Asia Pacific.
The market in India is projected to secure a growth rate of 12.8% from 2023 to 2033, as per FMI analysis.
Gradually affluent Chinese customers are giving a sturdy boost to the smart TVs segment in their pursuit of a high-end lifestyle. In an age of artificial Intelligence, this has become a lot easier, in turn, fostering the country’s anticipated CAGR of 10.3% during the forecast period.
Chinese smart home appliance manufacturers are developing cutting-edge technologies with smart TV products which provide interactive scenarios, improve their interaction with mobile phones, and connect with several smart home devices, to appeal to customers despite a slowdown in the domestic TV sector.
Honor, for instance, a smartphone brand of Huawei Technologies Co, introduces its first smart TV called Honor Vision powered by its HarmonyOS in China.
The smart washing machines segment is predicted to be at the forefront of the industry, accounting for the notable share of more than 30.4% of the global revenue.
The segment is expected to maintain supremacy throughout the forecast years. People are becoming more aware of new technologies, thus the adoption of smart devices in homes has significantly increased, which supports segment growth.
Changing lifestyles, increasing per capita income, and the rising need to save overall costs on energy consumption, are also likely to boost product demand.
According to Future Market Insights, offline smart home appliance sales are expected to retain a strong position in the global market, accumulating a revenue share worth over 63.5% in 2022.
The segment’s growth is attributed to a lingering preference by consumers to personally visit and examine appliances in conventional outlets so as to make better purchase decisions.
Simultaneously, online sales of smart home appliances are gaining significant traction, attributed to a proliferating e-commerce industry.
Offline channels allow for immediate product availability, offering customers the convenience of taking the product home immediately after purchase.
Offline stores can also provide personalized customer service, addressing any queries or concerns, and offering post-sales support, which enhances the overall customer experience, thereby fostering the segment’s growth rate.
Key players in the start-up ecosystem are pioneering new avenues for future growth through innovation, strategic partnerships, and leveraging emerging technologies.
The competition landscape in the smart home appliances market is highly dynamic and competitive, with numerous key players vying for market share.
Established brands and new entrants are continuously innovating and launching new products to stay ahead. The market is characterized by intense rivalry, strategic alliances, mergers and acquisitions, and technological advancements.
Companies are focused on offering a wide range of smart home appliances with advanced features, personalized solutions, and seamless integration to enhance the overall user experience.
Strong competition drives continuous improvement, product differentiation, and pricing strategies, benefiting consumers with a variety of choices and innovative solutions.
Key Players:
Developments in the Market:
The market is estimated to record a growth of 7.9%.
The United States is investing greatly in smart grid technologies.
Institutional sales segment contributes a maximum share in the market.
Offline sales holds a maximum revenue of the global market share.
From 2018 to 2022, the global market exhibited 7.0% CAGR.
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Smart Home Appliances Market
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