The global smart kitchen appliances market was worth USD 10.5 Billion in 2020 and is further projected to reach USD 26.6 Billion by 2027, at a CAGR of 15.0 % during 2021-2027 (forecast period). Smart sensors, security features, and convenience are the factors that are contributing to the growing demand for smart kitchen appliances. Furthermore, the growing trend of smart homes with segmental kitchens is also motivating demand for smart kitchen appliances. In addition, the rising trend of smart homes with modular kitchens is also driving demand for smart kitchen appliances.
Global Smart Kitchen Appliances Market Overview:
Appliances that can be controlled remotely through phones and tablets are called smart kitchen appliances. These appliances are widely used in both the residential and commercial sectors, globally. Smart appliances are devices, which are advanced and luxurious and designed for better efficiency and capability than traditional appliances. The kitchen concept has undergone significant changes as a result of rising technological advancement, with a focus on increasing efficiency and decreasing time spent on cleaning and cooking.
Global Smart Kitchen Appliances Market Forecast and Trends
Growth Drivers
Increased Adoption of Modular Kitchen
The growing popularity of modular kitchens, particularly among urban dwellers, is benefiting the smart kitchen appliance market. Because of rising living standards and increased population spending on household infrastructure, the adoption of modular kitchens is rapidly increasing. Customers prefer smart kitchen appliances that take up little space and add a stylish look to their modular kitchen. As a result, the demand for premium innovative devices is increasing, thereby fueling the growth of the smart kitchen appliances market.
Advancement in the electronics and semiconductor industry
With technological advancements in the electronics and semiconductor industries, there is a growing demand for more energy-efficient and high-performance products. Furthermore, the increasing development of sensing devices for electronic appliances has contributed to the development of sensor-based smart home appliances, which has contributed to the growth of the smart kitchen appliances market. The introduction of technologically advanced kitchen appliances is motivating consumers to upgrade their basic kitchen to a smart kitchen. Companies operating in the global kitchen appliances market provide a wide range of household kitchen appliances to meet the increased demand for such applications among household users.
Restraints
High Product Cost
The average price of smart home appliances is very high in the retail market. For the middle-class population, it has become challenging to afford such products. Furthermore, traditional devices are obtainable in the urban and rural markets at a lower cost. The high price factor may hinder the market, thereby affecting the demand negatively. Additionally, Higher input costs, as well as increases in the ocean and air cargo charges, are expected to have an impact on home appliance prices.
Impact of COVID-19 in the industry.
The COVID-19 pandemic has slowed the growth of all industries. Sales of smart kitchen appliances have also been hampered, owing to people's reduced purchasing power and increased spending on necessities and healthcare. Economic cycles and inflation rates are expected to have an impact on product demand and pricing. However, as the initial investment in purchasing a smart kitchen appliance is relatively high, the development of cost-effective and efficient technologies will drive sales of smart kitchen appliances.
Global Smart Kitchen Appliances Market: By Product-Type
The kitchen appliances market size is categorized into smart ovens, smart dishwashers, smart refrigerators, innovative cookware, cooktops, and others by product type. Among these product types, the refrigerator segment holds a significant share of the global kitchen appliances market. Smart refrigerators have become the must-have kitchen appliances with advanced technology and variants in size and color. The segment has been developing its product variants, availability, and technology over the last few years. As a result, smart refrigerators have become a trend and have gained traction among their target customers.
Global Smart Kitchen Appliances Market: By End-Users
Based on end-users, the smart kitchen appliances market is categorized into commercial and residential. The household segment accounts for the largest share of the kitchen appliances market among user applications. The demand for smart kitchen appliances has increased as people's lifestyles have changed and their disposable income has increased. The market is witnessing an increase in the preference for modular kitchens among household customers. Customers are opting for advanced and fashionable built-in kitchen appliances to boost the aesthetic value of their kitchen. Furthermore, the introduction of technologically advanced kitchen appliances is motivating consumers to transform their basic kitchen into a smart kitchen.
Global Smart Kitchen Appliances Market: By Technology
Based on technology, the market is divided into Wi-Fi (Wireless Fidelity), NFC (Near Field Communication), and Bluetooth. The Wi-Fi technology section held a dominant position in the smart kitchen appliances market in 2020 and is likely to maintain its supremacy throughout the forecast period. The growing availability of internet access in households also fuels the Wi-Fi technology segment of the smart kitchen appliances market. The residential segment dominated the smart kitchen market, and the use of WiFi is very prevalent in residential spaces, which is contributing to the growth of this segment.
Global Smart Kitchen Appliances Market – Regional Insights
Based on region, the global smart kitchen appliances market is divided into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. North America has the largest market share among all regions. During the forecast period, market vendors are expected to have a plethora of opportunities in this region. The occurrence of favorable infrastructure, acceptance of smart home technologies, technological advancements, and increased product aids will significantly drive smart kitchen appliances market development in this region over the forecast period. Furthermore, the Asia-Pacific region is also expected to be the strongest growing market during the forecast period. The region's growing adoption of smart refrigerators and smart ovens, particularly in China, is the primary driver of market development in this area.
Recent Developments
l In April 2021, LG Electronics (LG) was recognized for its strength in consumer and industrial design once again, receiving 31 product design accolades at this year's Red Dot Award, one of the design industry's highest honors.
l In April 2021, Godrej & Boyce, the Godrej group's flagship firm, reported that its Godrej Locks & Architectural Fittings and Systems business unit aims to generate INR 100 crore in revenue from its Godrej Kitchen Fittings and Systems business over the next five years. SKIDO- Smart Kitchen Drawers and Organizers is a new line of smart kitchen storage solutions launched by the brand.
Competitive Landscape
The key players in the global smart kitchen appliances market are Whirlpool Corporation, Electrolux, Samsung Electronics, LG Electronics, Haier Group, BSH, Miele & Cie KG, Panasonic, Robam, Midea, AB Electrolux, Glen Dimplex Group, Gourmia Inc., Haier Smart Home Co. Ltd., Koninklijke Philips NV, LG Electronics, Inc., Newell Brands, Inc., Robert Bosch GmbH and other key manufacturers.
Major companies are focusing on acquiring other companies in order to expand their kitchen appliances product line and increase sales revenue, which is driving the global kitchen appliances market. The acceptance of policies such as introducing new products, partnerships, and collaboration by major key players is also likely to increase market growth in the approaching years.
· By Product Type
o Smart ovens
o Smart dishwashers
o Smart refrigerators
o Smart cookware
o Cooktops
o Others
· By End-User
o Residential
o Commercial
· By Technology
o Wi-Fi
o NFC
o Bluetooth
· By Region
o North America
o Latin America
o Europe
o Asia Pacific
o Middle East
o Africa
