The global smart appliances market in terms of revenue was estimated to be worth USD 33.8 billion in 2021 and is poised to reach USD 76.4 billion by 2026, growing at a CAGR of 17.7% from 2021 to 2026. The new research study consists of an industry trend analysis of the market.
the market for smart appliances has experienced significant growth, primarily due to the increasing demand for smartphones, and the availability of wireless solutions is also expected to significantly boost the market in the near future. These factors will drive market growth through the end of the forecast period.
Significant percentage of the population in these regions still find high-end smart home appliances with advanced technologies unaffordable. In Asian countries such as India and China, a sizeable portion of the population cannot afford even basic home appliances. Thus, the high cost of purchase, as well as maintenance, can hinder the growth of this market at a global level.
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Driver: Rising availability of wireless connectivity solutions
Wireless solutions not only reduce the usage of wires but also help to avoid the reconstruction of existing homes, thereby offering flexibility to end users. A variety of new wireless protocols have been developed to improve the working of smart appliances. The advent of ZigBee and Z-Wave, apart from the existing technologies such as Bluetooth and Wi-Fi, is likely to bring about major technological advancements in the smart appliances market. ZigBee alliance control ZigBee protocol is a lower power specification based on the IEEE 802.15.4 standard for personal area networks. It uses less power and provides better coverage. Z-Wave can be used for all kinds of wireless applications. It can be used to connect sensors in security systems, locks, smoke detectors, and other smart appliances in the house.
Restraint: Concerns about data privacy among end-users
Internet users and smartphone users are concerned about possible misuse of their personal information, such as names, email addresses, home addresses, dates of birth, and credit card numbers. Furthermore, smart appliances are mostly controlled through smartphone apps developed by companies; companies capture consumer data through these apps, which further increases consumer concerns over their privacy. Thus, privacy concerns are a potential barrier to the growth of the smart appliances market.
Opportunity: Integration of new technologies, such as AI, with smart appliances
AI technologies make products think like humans. They help to understand how the human brain thinks, learns, decides, and works. AI has become very popular in today’s world. It has applications in different industries like healthcare, manufacturing, banking, and automotive. Smart appliances companies are working to in-build AI in products to make them more personalized and convenient for consumers.
AI will help to identify usage patterns, user preferences, and opportunities for additional technologies. It helps in identifying gaps in the usage and capabilities of smart appliances. This will give companies working in the field of smart appliances an opportunity to enhance their products to meet customer requirements in the future. For instance, LG Electronics (South Korea) introduced its new AI-enabled Proactive Customer Care for personalized support and alerts. On purchase of certain LG appliances, users get this complimentary Proactive Customer Care service through the LG ThinQ app. The app is available for both iOS and Android phones.
Challenge: High cost associated with installation of smart appliances
Smart appliances are relatively expensive as compared to conventional appliances. To connect all the appliances in the house, they must be connected via a common interface for communication. Installation costs can range from USD 50 to USD 1,000, depending upon the number of appliances and technology used. Although it is beneficial for the long run, attracting consumers at these costs can be a challenge for companies. Currently, smart appliances are installed in most American and European homes.
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