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The global smart plug market size was valued at USD 1.55 billion in 2021. The market is projected to grow from USD 1.83 billion in 2022 to USD 9.24 billion by 2029, exhibiting a CAGR of 26.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with smart plug experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global smart plug market exhibited a decline of -4.5% in 2020 as compared to 2019.
Smart plugs are IoT-based plugs that run with the help of Wi-Fi and Bluetooth. Smart connected plug is the easiest way to enhance efficiency and automate the working of wired devices in a smart home. These plugs create a network of smart electrical devices in the smart home system, which helps control plug system operation and set up communication protocol between lights and switches within a particular area. These plugs are either directly fixed into the walls during the electrical fittings in a smart home or inserted in a conventional electric plug. IoT-compatible software and applications are used to manage the operations of these plugs. These plugs can be operated by voice commands and gestures with the help of virtual assistance devices such as Amazon Alexa, Google Home, Siri, and others. Any wired or wireless electrical appliances such as fans, lights, lamps, and other devices can be operated by an individual with the help of smartphone, tablets, and laptops when these devices are plugged into the smart plug.
The global smart and connected plugs market has been booming since the last decade, and it is expected to continue this trend during the forecast period. However, the market’s growth slightly declined in 2020 due to a surge in COVID-19 cases while the strict implementation of global lockdown restricts the movement of people, which disrupts the supply chain of various smart home equipment manufacturing companies in various countries. The shifting of day-to-day activity on digital platforms and the emergence of cutting-edge technology, such as the Internet of Things, is expected to boost the market growth during the forecast period.
Global Regulations for Lockdown and Skilled Labor Migration to Negatively Affect Market Growth
The recent coronavirus outbreak has pushed the world economy and human life into danger. In an attempt to control the COVID-19 pandemic, government authorities of various countries in the world have strictly imposed a nationwide lockdown. Despite the fact that the lockdown may help to reduce the spread of the coronavirus. However, it has badly affected the global economy. It disrupted the supply chains of major emerging businesses and industries. Also, many skilled laborers migrated to their original native place due to the manufacturing plant closures and fear of COVID-19 infection. Supply chain disruption and migration of skilled labor negatively affect manufacturing units and reduce the production of the final product, thereby declining the market growth.
However, the increasing adoption of connected devices in emerging countries has led to an increase in the installation of smart connected plug systems in commercial and residential spaces. The adoption of connected plugs in smart homes, retail stores, industrial spaces, and warehouses is increasing rapidly due to rising awareness regarding its benefits. India, China, the U.S., Germany, Saudi Arabia, South Africa, and other countries are experiencing a sudden spike in the implementation of the Internet of Things (IoT) and the use of cutting-edge devices. This factor has increased the installation of intelligent and IoT-based electrical plug systems. Due to the fear of contamination by coronavirus, most people avoid touch switches and dimmers in official spaces, which increases the product demand in commercial spaces. This factor facilitates industry growth.
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Growing Inclination toward Energy-efficient Electrical Solutions to Fuel the Market Growth
Smart plugs are also called smart connected electrical control systems. Smart plug with IoT technology is widely used for converting ordinary devices into smart devices. Various electronic control units are used with the plug into an electrical socket. Increasing trends of eco-friendly electrical devices and rising adoption of the Internet of Things (IoT) in modern smart and connected home systems are likely to bolster industry growth. Energy conservation or energy saving is one of the most trending topics worldwide, and the adoption of IoT-based connected device systems is anticipated to significantly contribute to energy saving and energy conservation missions. Many facility and housekeeping managers and company owners became more aware of energy saving. They set up various organizational or interdepartmental goals for energy conservation and saving. Managers rapidly adopt smart connected plug systems in their organizations to accomplish these goals. Also, increasing adoption of building management systems in commercial buildings is expected to boost the global smart plug market growth.
Ongoing and Upcoming Smart City Projects in Developing Economies to Boost Product Demand
Most emerging economies are shifting their focus toward digital awareness and digitization. As part of this digitization agenda, most countries are actively implementing smart city projects on a large scale. Smart and connected plug is one of the major parts of the smart city projects as it uses the connected plug system, which is easy to control by smart devices.
Connected plug systems played an important role in the intelligent and digital transformation of modern buildings and cities in the last decade. This trend is expected to continue in the forecast period, owing to the increasing adoption of the internet of things and connected devices in smart city programs globally. The use of smart connected plugs and control systems in smart city projects is anticipated to reduce maintenance as well as energy costs of the plug system by 40% in a single year. This factor will also help to improve environmental impact positively. Nowadays, most smart cities have been installing connected plugs and control systems or upgrading their existing retrofit system with the help of the Internet of Things sensors. Such adoption of connected plug systems in smart city projects is expected to drive the market growth globally.
High Initial Costs of Plugs Control System to Restrain Market Growth
The use of smart and connected plugs is increasing after the successful implementation of the Internet of Things in various emerging countries. The use of connected plugs is increasing in smart home projects. However, the basic retail cost of smart connected plugs is much higher than that of the existing conventional plugs. The main reason for the high per unit price ratio is attributed to expensive components such as voice recognition sensors and transmitters & receivers in connected plugs. These expensive components directly impact the final retail price of the smart connected plug. Furthermore, the operational cost of these smart connected plugs is also high, as it needs low latency and high-speed Wi-Fi or Bluetooth connection, which is expected to hamper the global market.
Wi-Fi Segment Recorded Highest Revenue in 2021 Owing to Fast Operation and 5G Compatibility
By product, the market is segmented into Wi-Fi and Bluetooth.
Due to the increasing adoption of internet-operated plug system, the Wi-Fi segment generated the highest revenue in 2021 and is predicted to continue this streak during the forecast period. Due to the increasing adoption of connected devices and the Internet of Things, the Bluetooth segment is following the same trend during the forecast period. However, the Wi-Fi segment shows lucrative growth opportunities with the highest CAGR during the forecast period.
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Residential Segment to Lead Backed by Increasing Adoption of Smart Plug Technology
By end-user, the market is classified into commercial, residential, and industrial.
Due to numerous benefits of connected plug systems in household applications and the adoption of home automation technologies, the residential segment generated the highest revenue in 2021. Numerous customers are choosing smart and advanced plug systems, which is estimated to drive the market globally. The industrial segment is also anticipated to follow the same trends, and it is estimated to have the highest CAGR during the forecast period. Furthermore, revenue generated by the number of unit sales for connected plugs devices in residential and industrial segments is very high due to the frequent use of smart devices.
However, the commercial segment is also expected to show moderate growth during the forecast period. Due to various factors such as restricted financial budget and connectivity issues, the use of advanced plug systems in the commercial segment is less, affecting the global market.
Asia Pacific Smart Plug Market Size, 2021 (USD million)
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The Asia Pacific market size was valued at USD 798.9 million in 2021 and is estimated to emerge as a dominating region in the global market. Rising adoption of the Internet of Things and connected devices in smart homes and smart cities is likely to drive market progress in the region. Moreover, major players adopt numerous business strategies to expand their market presence in the region.
Growing Adoption of IoT and Automation in the Manufacturing Sector in China Drives the Market Growth
China is the highest revenue-generating country owing to the presence of advanced manufacturing facilities. Further, the rapid adoption of the Internet of Things and automation in regular industrial as well as residential operations may boost the market’s progress. Moreover, according to Fortune Business Insights analysis, it is anticipated to become the highest-growing country during the forecast period.
Major players adopt numerous crucial strategies such as acquisitions, partnerships, and expansions to elevate this industry’s growth in the country. In addition, China is a global hub for manufacturing of semiconductors and transmitters, thereby driving market expansion.
Asia Pacific is the highest growing region in the forecast period due to the presence of major players in India and China. Further, rising number of small-and medium-scale system manufacturers in the emerging countries may foster market progress. Further, government authorities in developing economies undertake initiatives. For example, the Indian government launched the “Make in India” to boost the local manufacturing industry in the country.
In North America, the U.S. market may progress rapidly during the forecast period. The adoption of advanced technology in industrial and residential sectors may boost market growth in the U.S.
In Europe, Germany led the overall regional market in 2021, and may continue this trend during the forecast period. This is primarily owing to fast pace adoption of IoT technology and growing industry 4.0 revolution. According to the National Academy of Science and Engineering, the Industry 4.0 in Germany is expected to reach USD 425 billion by 2025. The German government’s goal is to adopt the Industrial 4.0 Strategy by 2030. Moreover, Germany may record the highest CAGR in the forecast period due to the availability of huge smart home equipment production units.
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Slower technological advancements and lack of skilled labor required for operating manufacturing plants of smart home equipment may result in moderate growth in South America and the Middle East & Africa.
Panasonic Corporation Focuses on Increasing its Regional Presence to Expand its Reach
Panasonic holds the highest market share in the global market since the company is a major producer of transmitters and sensors, a main component of smart plug. The company supplies raw materials to other key players in the competitive landscape. Further, TP-Link Technologies Co., Xiaomi Inc., D-Link Corporation, EDIMAX Technology Co. Ltd., Leviton Manufacturing Co., Inc., Ankuoo Electronics Inc. Lenovo Group Limited, Ltd., SDI Technologies, Inc., Broad-link Technology Inc., and Belkin International, Inc. have set-up their production plants in several countries, where labor and production costs are lower compared to others. Further, several companies focus on product launches, partnerships, and acquisitions with several small and medium-sized companies to expand their regional presence.
An Infographic Representation of Smart Plug Market
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The research report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use industries. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the growth in recent years.
Value (USD billion)
By Product, End-user, and Region
Fortune Business Insights says that the market stood at USD 1.55 billion in 2021.
In 2029, the global market is expected to be valued at USD 9.24 billion.
The market is set to exhibit a CAGR of 26.1% during the forecast period (2022-2029).
Asia Pacific is anticipated to be the dominant region, which stood at USD 798.9 million in 2021.
In the end-user segment, the residential sub-segment is expected to witness the highest CAGR during the forecast period.
The adoption of advanced technologies such as Internet of Things and increasing energy-saving concerns are the key trends in the global market.
Ongoing and upcoming smart city projects in developing economies drive the market.
Lenovo Group Limited, TP-Link Technologies Co., Ltd., Xiaomi Inc., D-Link Corporation, Ankuoo Electronics Inc., EDIMAX Technology Co. Ltd., Belkin International, Inc., Leviton Manufacturing Co., Inc., Broad-link Technology Inc, SDI Technologies, Inc., and others.
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