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A smart home provides the convenience of controlling and automating every device and appliance at home by conserving energy and reducing cost. With the growing advancements in lifestyle and enhancements in automation, innovative home technologies are upscaling rapidly across the globe. Smart home appliances are fulfilling the ever-increasing consumer interest in luxury and leisure and also, at the same time, taking care of safety and security needs. With the rapidly rising living standards of the consumers, several new households are investing in smart appliances and other household products.
Modern technology has a vast influence on how things are done and how humans constantly adapt to it. The growing consumer awareness regarding the time-saving benefits of multi-functional devices has supported the widespread usage of such products across households. These devices fulfill the customer's preferences and provide ease and convenience to their lifestyles and activities, which has boosted consumer spending on such products.
The growth of the smart home appliances market is primarily driven by the rising number of smart homes and the growing internet penetration among users. For instance, according to a survey conducted by ValuePenguin with more than 1,000 individuals, smart home devices are increasingly familiar to the majority of their households. The research shows that 65% of Americans have a smart device in their home, and for various reasons. Manufacturers are investing extensively to support the growing demand of consumers for feature-loaded smart solutions. For example, Google Home, a set of speakers released by Google in 2016, enables users to control their home's environment simply through a voice command.
Increasing consumer focus on home security and energy-efficient appliances, including smart speakers, smart security cameras, and smart locks, are major categories driving the market. These smart security devices monitor and track the activities and further activate the security system in an emergency. For instance, according to a report by 'The United Nations Office on Drugs and Crime' (UNODC), around 21 million theft and burglary cases were registered in 2016. With the adoption of smart security solutions, these numbers showcased a rapid decline by 12-13% as compared to 2015 estimates. The demand for premium products, including smart speakers, washers/dryers, air conditioners, refrigerators, etc., has also increased, which is expected to boost the smart home appliances global market in the coming years.
The high production costs of smart home appliances create a challenge for the users towards purchasing smart devices. This leads to a barrier in adopting smart home appliances across households and enterprises and restraining market growth.
Key Market Driver -
The growing number of smart homes are fostering the demand for smart home devices which is likely to drive the market.
Key Market Restraint -
The high cost of adoption of smart devices is likely to restrain the market growth.
The prominent key players of the Smart Home Appliances Market are Haier Group Corporation, Electrolux, Samsung Group, L.G. Electronics, Inc., Whirlpool Corporation, Fujitsu General Limited, Dacor, Voltas Limited, Panasonic Corporation, Robert Bosch GmbH, etc.
The global smart home appliances market is segmented based on product type, technology, distribution channel, and geography.
Based on product type, the market is segmented into the washing machine, A.C.s, refrigerator, dishwasher, and others. Smart washing machines are expected to foresee considerable growth in the global market during the forecast period. Seamless internet access and a rising number of smartphone users have boosted the consumption of smart washing machines globally. The washing machines are loaded up with numerous features like faster cleaning and drying facilities that can be operated through a smartphone, thereby saving users' time in such activities.
Based on technology, the market is segmented into Wi-Fi, Bluetooth, cellular technology, and RFID. The Wi-Fi segment is anticipated to grow significantly in the upcoming period. Wireless communication plays an essential role in monitoring and controlling home appliances from remote locations to reduce electricity consumption. Wi-Fi technology is primarily used in residential and commercial establishments as an alternative to broadband and wired LAN services.
Based on the distribution channel, the market is segmented offline and online. The offline segment is expected to register a noticeable growth in the forecast period attributed to the higher preference among users towards specialty and branded stores. It allows the consumers to a first-hand look at the products, which helps ensure the quality and specifications. Moreover, the supermarkets and the specialty stores stock up several accessories under one roof, making it convenient for the users to buy accordingly. Also, sales specialists' in-store demonstrations about the products often create a great engagement for the customers to make a purchase decision.
By geography, the global smart home appliances market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
The North American region is anticipated to be the dominant growing region globally in terms of market share. North America is expected to be the most advanced region for smart homes globally, which can be attributed to growing internet penetration and technology advancements in developing economies, such as the U.S and Canada. New product developments and improvements in wireless communication technologies across the industry are paving the way for the higher adoption of smart appliances. The U.S. market has seen consistent year-over-year growth in the number of smart devices, and this is projected to continue in the years to come. According to a McKinsey&Co survey among the 3000 households surveyed in the U.S, the estimate showed a compound annual growth rate of 31% in the number of smart homes connected with smart systems in the year 2017. Major companies like ABB, Emerson, Honeywell, Schneider Electric, Siemens, and L.G., etc., continuously release new products and technologies for the smart homes' market. For example, in September 2018, ABB Ltd launched an ABB-free home smart solution in the U.S.
Europe is anticipated to be the potential regional market because of the higher adoption of smart appliances. The greater indulgence of consumers in buying energy-efficient products across the E.U. countries is ramping up the demand for smart devices in this region. In Europe, the market is considerably driven by the increasing expansion of small startups and rising investments in countries such as Germany, the U.K, France, and others. The growth is attributed to the growing demand for smart security and monitoring solutions in this region. These factors will help develop the regional market, thus fostering global smart home appliance demand and size. For instance, Blue Line Innovations Inc. in 2018 launched the 'Energy Cloud platform' to perform operations in both residential and commercial segments.
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