A buyer’s guide to Smart Home among the EU7 countries
Smart Home automation and major appliances continue to grow, according to GfK research.
- $13.6 billion From January to June this year, sales of smart products recorded $13.6 billion (USD) for the seven major European markets
- 58.2% Share of home entertainment and office of the overall smart market value
- +9.9% Home automation year-to-date growth in the first six months of 2022
The market penetration of smart products is rising steadily, although smart portfolios overall are not yet mass market in most countries and categories. Smart products play directly into three of the overarching themes that are driving consumer purchase decisions in the long-term: performance, simplification and premiumisation.
From January to June this year, sales of smart products recorded $13.6 billion (USD) for the seven major European markets. This is actually 7.2% lower than the same period in 2021, or 3.7% lower if we exclude smart TVs. Home entertainment and office is still the biggest category in terms of share, accounting for 58.2% of the overall smart market value, mainly due to smart TVs.
However, the home automation and major domestic appliances categories saw the best year-to-date growth in the first six months of 2022, standing at plus 9.9% and plus 2.1% respectively. Smart small domestic appliances and health categories witnessed a decline of 5.8% compared to the high baselines of the previous year.
Among the EU7 countries, Germany and UK are the biggest markets for Smart Home demand. Smart Home categories grew by 3.3% in Germany and recorded a minuscule decline in UK, far below the average. Within the smart portfolio, smart voice control capabilities in the home entertainment and major domestic categories are growing faster than the average market. Within the small domestic appliances and health and home automation categories, app-based control capabilities are the core for growth.
Having a tangible benefit and communicating it widely is crucial to increase the adoption of smart portfolios, the research demonstrates. In some categories to which the above applies, the share of smart products is already significantly high, for example: robot vacuum cleaners or TVs. In certain other categories, mass adoption is yet to be achieved.
Note: All growth numbers according to GfK panel market in USD value growth and for EU7 countries.EU7= Belgium, France, Germany, Spain, United Kingdom, Italy and the Netherlands.
Note: All growth numbers according to GfK panel market in USD value growth and for EU7 countries.
EU7= Belgium, France, Germany, Spain, United Kingdom, Italy and the Netherlands.