In 2021, the smart home appliances market valued at $34.8 billion and is likely to reach $139.0 billion by 2030. The market is predicted to grow at a 16.6% CAGR from 2021 to 2030 owing to enhancing the lifestyle of consumers, greater adoption of technologies, and gradually increasing smartphones and internet penetration. With the emergence of COVID-19, the demand for these appliances increased as, after the outbreak, almost all the people worked from home and required smart applications to perform the monotonous tasks with ease.
The smart home appliances market is driven by aggressive investments by people toward home improvement or redesigning projects to upgrade the conventional households and adapt to the changes in the current market dynamics. There is a paradigm shift in consumer preferences toward a smart home owing to their change of preferences, complicated and busy lifestyle, coupled with an increasing disposable income which will improve the purchasing power. The equity of the homeowner is significantly surging with an improvement in home value. This trend is in favor of the owners who are focused on home improvement.
Wi-Fi technology will have a positive effect on the smart home appliances market growth being the easiest way to use smart devices. Wi-Fi-enabled appliances will approximately reach $68 billion by 2030 and account for total sales of around $16 billion in 2021. This can be ascribed to its features of working with a huge amount of data by default through proper infrastructure. The computer manages aa the applications through Wi-Fi. With an improvement in automation technologies and worldwide internet penetration, the market for smart appliances will boom.
Within the distribution segment, the smart home appliances market is bifurcated into online distribution channels and offline distribution channels. It is projected that the online sales of these appliances will advance at a higher growth rate. This can be credited to increasing consumer preferences in e-commerce and the rapid expansion of digitalization, especially among working professionals. Furthermore, the benefits offered by online distribution channels like e-retailers start-ups and e-commerce websites will drive the market such as the wide variety of products, enhancing accessibility of products through home delivery, annual sales benefits, and discount coupons.
The residential sector plays a prominent role in the smart home appliances market growth because of snowballing demand for smart home appliances in this sector at a swift pace. The residential sector dominated the market in 2021, generating a revenue of approximately 70%. Being aware of the latest trends in the market, the consumers are increasingly inclined toward connected home solutions in an attempt to build a convenient living space and upgrade the standard of living.
The largest market for smart home appliances is APAC because of the rapid urbanization, growing population, and skyrocketing demand for luxury housing projects in the region accompanied by surging disposable income will pave the way toward smart homes. This, in turn, will have a positive effect on the technically advanced products in the region. This innovation is driven by the diversifying of the products offered and rising investments in R&D activities by prominent market players to attain a competitive edge.
