Rising energy costs and changing lifestyles drive smart home market through 2026
By Jean-François Pieri
The global smart appliances market is expected to grow from US$ 33.8bn (eds: €29.95bn) in 2021 to US76.4bn (eds: €67.7bn) by 2026; it is expected to grow at a CAGR of 17.7% during this period. The major driving factors for the growth of the smart appliances market include rising energy prices, changing lifestyles of consumers, increasing use of wireless connectivity, and increased government regulations to save energy.
The revelations have been made in the latest report from ResearchAndMarkets.com: “Smart Appliances Market with COVID-19 Impact Analysis by Offering, Products (Smart Washer, Smart A.C, Smart Dryer, Smart Refrigerator, Smart Cooktop, Smart ), Services, Technology, End-User-Industry, and Geography – Global Forecast to 2026.”
In terms of CAGR, the service segment in offerings is expected to significantly increase in the smart appliances market during the forecast period from 2021 to 2026.
The scope of services of the smart appliances market includes system integration services, repair & maintenance services, consulting services and others. The majority of smart appliances are used by residential end-users.
Thus, the demand for after-sales services such as maintenance, repair, or consulting is high in the residential end-user segment.
High adoption of ZigBee and Z-wave technology drives market growth
ZigBee uses ZigBee protocol, a lower power specification based on the IEEE 802.15.4 standard for personal area network. ZigBee is used to create personal area networks (PANs) with small, low-power digital radios and has a transmission distance of 10-100 m. ZigBee operates at a frequency of 2.4 GHz, like that of Bluetooth. Zigbee is a “full-stack” solution for a majority of large smart home ecosystem providers, such as Amazon’s Echo Plus, Samsung SmartThings, Signify (Philips Hue) and more.
Z-Wave is a wireless communications protocol used for home automation. It was developed by a Danish startup named Zen-Sys (Denmark), which was later acquired by Sigma Designs (US) in 2008. It provides a simple and reliable ecosystem of low-power RF radio embedded into home electronics systems and devices such as security systems, home cinema, lighting, automated window treatments, and HVAC. Z-Wave’s advanced wireless technology is gaining popularity owing to its high speed and reliability.
The demand for these technologies has increased in recent times and is expected to drive the market.
The residential sector in the end-user industry to show significant growth in the smart appliances market, after COVID-19
In the post-COVID-19 scenario, the smart appliances market for residential end-users is estimated to grow during the forecast period.
The COVID-19 pandemic has affected the smart appliances market both positively and negatively. The demand for smart appliances such as refrigerators and washing machines has increased due to the COVID-19 pandemic.
Following the outbreak of the virus, a greater part of the population has been working from home; thus, spending more time at home requires a large number of appliances that can complete tasks more efficiently as compared to traditional methods
North America to account for the second-largest market share during the forecast period
In 2020, the outbreak of COVID-19 severely affected the demand for smart appliances in the US and other North American countries, which is likely to have undermined the GDP of North American countries. North America, being a hotspot for the COVID-19 outbreak, is expected to witness a significant impact on the demand for smart appliances in the region. With the lifting of lockdown restrictions, the demand will revive slowly during the forecast period.
Read also: “In the smart home, Miele appliances can make an important contribution to the energy transition”
Photo – top of page: Bence Boros / Unsplash