The global smart appliances market was valued at approximately USD 18.82 billion in 2017 and is expected to generate revenue of around USD 49.12 billion by the end of 2024, growing at a CAGR of around 14.69 percent between 2018 and 2024.
According to the US Energy Information Administration, the global energy demand is anticipated to reach nearly 38 percent by 2040. Rising cost of electricity bills is becoming a concern for household consumers. Also, appliances such as water heaters, refrigerators, air conditioners, home entertainment systems, and lighting fixtures consume a large amount of electricity. These rising costs are driving the consumers toward more energy saving options.
The smart appliances market is segmented on the basis of product type which is bifurcated into smart home appliances and smart kitchen appliances. Smart home appliances are further divided into smart washers, smart dryers, smart air conditioners, smart lighting devices, smart vacuum cleaners, smart security devices, and smart water heaters. The smart kitchen appliances are further categorized into smart refrigerators, smart coffee makers, smart kettles, smart dishwashers, smart ovens, smart cookers, and other appliances.
Among the smart home appliances segment, the smart washing machine market is expected to generate the highest revenue. These appliances can be operated using various technologies, such as radio frequency identification (RFID), wi-fi, ZigBee, Bluetooth, and cellular technology. Wi-fi, bluetooth, and NFC are the most widely used technologies in the market. Also, the increasing penetration of IoT has led to the widespread popularity of wi-fi technology.
Based on technology, the smart appliances market is segmented into
wi-fi, bluetooth, and NFC. Rapid developments in the topology of wireless communication and IT have been the major factors boosting the incorporation of smart appliances with devices such as laptops, smartphones, and tablets. Wi-fi technology is widely used in commercial establishments and homes as an alternative to wired LAN. Currently, this technology has emerged as an effective technology to operate a large number of home appliances from remote locations.
Regionally, the market for smart appliances is segmented into Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa. China and Japan are the leading markets for a variety of smart home and kitchen appliances and are anticipated to lead the market for smart appliances. Asia-Pacific is witnessing growth due to rising disposable incomes of the people living, strengthening economies, and also due to the expansion of high-speed internet in the region.
The rising commercialization of smart home systems and the ease of availability are also some of the driving factors for market growth in this region. The market is also expected to see heightened demand for a variety of smart systems and appliances from developed regions of Europe and North America, owing to the highly technologically advanced infrastructure, easy availability of advanced products, and high disposable incomes in these regions.