Global smart home market to reach over €64 billion by 2026
The market for smart home appliances is registering healthy growth, driven by the increasing number of smart homes globally, the advancements in home automation, and the rising inclination of people to cook at home. The findings have been published by Research and Markets in their latest global Smart Home Appliances Report.
The increasing number of home remodelling or home improvement projects especially in the west is spurring the use of smart appliances in households, Research and Markets said. In addition, the report finds that smart home appliances are becoming easier to use with the addition of various functionalities, which is attracting user attention.
According to Research and Markets, the global market for Smart Home Appliances estimated at US$33bn (€29.6bn) in the year 2020, is projected to reach a revised size of US$73.1bn (€65.6bn) by 2026, growing at a CAGR of 13.9% over the analysis period.
Various developments in wireless communication and IT infrastructure that facilitate easy integration of such appliances, and innovations and advancements by leading companies are boding well for the market. The rise of IoT is also facilitating the growth of the market, Research and Markets found. With the use of IoT, various appliances will be able to interconnect with one another.
Growing urbanisation, better lifestyles, increasing disposable income levels and the need for convenience are also driving interest in smart home appliances.
The Smart Washing Machine sector is projected to grow at a 13.6% CAGR to reach US$25.2bn (€22.6bn) by the end of the analysis period, Research and Markets claim.
After a thorough analysis of the business implications of the Covid pandemic and its induced economic crisis, growth in the Smart Air Purifiers segment is readjusted to a revised 15.4% CAGR for the next seven-year period. This segment currently accounts for a 20% share of the global Smart Home Appliances market, according to the report.
Smart washing machines lead the market, supported by the growing Internet and smartphone penetration. The convenience and luxury associated with such appliances is driving their demand. Smart air purifiers are likely to register strongest growth due to considerable focus having clean air, mainly due to the Coronavirus pandemic. Deteriorating quality of air and growing awareness of the benefits of air purifiers are fostering demand for these appliances.
Smart TV segment to reach US$18bn (€16bn) by 2026
In the global Smart TVs segment, the USA, Canada, Japan, China and Europe will drive the 13.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of $5.8bn (€5.2bn) in the year 2020 will reach a projected size of US$14.8bn (€13.2bn) by 2026.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach $2.8bn (2.51bn) by the year 2026.
The US market is estimated at $8.6bn (€7.7bn) in 2021, while China is forecast to reach $15.7bn (€14.1bn) by 2026
The Smart Home Appliance market in the US was estimated at $8.6bn (€7.7bn) in the year 2021. The country currently accounts for a 23.7% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of $15.7bn (€14.1bn) in the year 2026 trailing a CAGR of 17.5% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 11% and 13.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12% CAGR while “Rest of Europe” market (as defined in the study) will reach $6.1bn (€5.47bn) by the end of the analysis period.
The Research and Markets state that Asia-Pacific holds the lion’s share of the market, due to the growing accessibility to the internet and technological developments in countries such as India and China. The North American market is stimulated by significant disposable incomes, rising interest in such appliances, improving lifestyles of customers, and growing environmental concerns.
For more smart home news, click here.