Smart Kitchen Appliances Market

Market Outlook for Smart Kitchen Appliances

Fact.MR, a market research and competitive intelligence provider states that smart kitchen appliances sales reached nearly US$ 10 Bn by the end of 2020. Growing reliance on the Internet of Things and Artificial Intelligence are hugely driving demand for smart kitchen appliances. The market is projected to race ahead at a stupendous rate, surpassing a value of US$ 93 Bn by 2031, with demand for energy-efficient kitchen appliances rising exponentially.

Key Points Covered in Global Smart Kitchen Appliances Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Global Smart Kitchen Appliances Market and How to Navigate
• Recommendation on Key Winning Strategies

Global Smart Kitchen Appliances Revenue Analysis 2016-2020 Vs Outlook from 2021-2031

Over the last five years, from 2016 to 2020, smart kitchen appliances garnered a market value of nearly US$ 10 Bn by the end of the aforementioned period.  Manufacturers of smart kitchen appliances are continuously developing, innovating and integrating IoT with kitchen appliances. Companies are focusing on reducing the usage of energy and promoting sustainability.

Amidst the COVID-19 pandemic, sales prospects remained largely unaltered, although headwinds were experienced in the first half of 2020, with restrictions on manufacturing and logistics being strictly enforced. However, sales ultimately expanded as these curbs were lifted in Q4 2020. Furthermore, consumer awareness regarding a healthy environment at the peak of the pandemic prompted them to invest in efficient and smarter appliances.

Thus, due to the above mentioned factors, the global smart kitchen appliances market is expected to register a double-digit CAGR of 25% across the 2021-2031 forecast period.

The growing urbanization and increasing smart cities funding have positively impacted the entry of smart appliances in the kitchen. Apart from other features like size, weight, and color energy efficiency is a major characteristic for which consumers purchase smart appliances for kitchens. The kitchen equipment is anticipated to grow between 2020 to 2028.

The global smart kitchen arcade is likely to cross 20 billion in the current decade i.e. 2020- 2030. This growth is also attributed to the need for energy-saving appliances motivating users for smart kitchen equipment. The smart city funds given by the government also influence driving the market up.

Despite the projected growth, the kitchen appliances market is relatively small than that of the overall household appliances industry which is anticipated to grow and reach USD 450 billion by end of the year 2023.

IoT plays a crucial role in the penetration and adaptation of smart appliances in the kitchen. The IoT devices globally are forecast to grow to triple from the present 9.7 billion. This is anticipated to grow and make 29 billion by 2030. Among all these the highest no of IoT devices is likely to be in China ranging around 5 billion consumer markets.

On the basis of product, the smart refrigerator market is valued at USD 2.5 billion in 2022 while there is a forecast for the market set to grow with a growth rate of double digits in upcoming years. The segment of refrigerators is likely to be followed by smart cookers and ovens which amounts to USD 109.50 billion in 2023.

With Alexa smart voice integration equipment management in the kitchen has become easier. The smart speaker can enhance the kitchen experience with their assistance capacities. Manufacturers in this industry are likely to focus on maintaining product design that doesn’t involve heavy apps while cooking but still streamlines the process of cooking.

How is Rapid Digitization Paving Way for Smart Kitchen Appliances?

Smart kitchen appliances are devices that can be controlled remotely through tablets or smartphones, and are being widely adopted in both, commercial as well as residential sectors, globally. Factors that are fuelling interest in smart kitchen appliances include intelligent sensors, security features, and convenience. Furthermore, growing trend of smart homes with modular kitchens is also driving demand for smart kitchen appliances.

Additionally, technological advancements such as IoT-enabled smart kitchen appliances, for example, AI-enabled refrigerators, coupled with high disposable income, especially in North America, have provided the needed push for market growth. Lifestyle changes, busy schedules, and efficiency around the kitchen have increased demand for smart kitchen appliances. Demand for smart coffee machines is steadily rising across organizations, while demand for smart refrigerators is rising from households.

How are Energy Efficiency Concerns Fueling Demand?

Rising concerns regarding energy conservation, demand for energy-efficient smart kitchen appliances is projected to grow at a rapid pace. For instance, companies such as Whirlpool and Samsung are focusing on eco-friendly appliances with high energy ratings to increase their penetration in the market.

Additionally, investments in innovative solutions such as IoT (Internet of Things) devices for kitchens are projected to grow in the future. With a small amount of processing power being embedded, smart kitchen appliances will have a significant impact on the lifestyles of people.

How will the Convenience Factor Aid Smart Kitchen Appliances Uptake?

Demand for convenient devices that can make life easy is at an all-time high. Keeping in mind consumer behaviour, companies are equipping appliances with different sensors that can easily facilitate various operations.

Moreover, enhanced features that can connect appliances with other household appliances, such as smartphones and tablets, are making the life of people easy, and hence demand for more efficient smart kitchen appliances is on the rise.

Additionally, penetration of technology in different products such as Wi-Fi-controlled smart refrigerators, dishwashers, ovens, cookware, etc., gives people a range of choices to purchase products easily. Demand for customized functionality and enhanced user experience is adding to growth of the smart kitchen appliances industry.

What are the Key Barriers for Smart Kitchen Appliances?

Average cost of appliances being high is a major factor hindering market growth. Additionally, major population across Asia comprises of middle-to low-income families, who, even though are willing, cannot afford to invest in smart kitchen appliances.

However, investments in innovative technologies and embedded IoT systems are projected to lower the prices and increase adoption of smart kitchen appliances in the long run.

Country-wise Analysis

Why Does the U.S Hold a Major Share of Smart Kitchen Appliance Sales?

Currently, the U.S holds a majority of the global market share, capturing 39% of total revenue in 2020. Factors behind this high market share are high disposable income and growing preference for new technologies in the region. The U.S market, in general, is a matured one with people ready to adopt new technologies at a fast pace.

Additionally, strong purchasing power coupled with high technological acceptance is a major factor for market growth in the country. Regional policies promoting energy-efficient smart kitchen appliances have shown affirmative signs of growth for the industry. Such developments have resulted in higher profits, thus encouraging stakeholders to invest more in the manufacturing of smart kitchen appliances.

What Potential Does China Hold for Smart Kitchen Appliances?

Technological advancements in China have led to significant growth in demand for smart kitchen appliances. For instance, Wi-Fi-capable products have become a common trend, and evolution from individual products to interconnected products has become a reality in Chinese homes.

Moreover, businesses too are rapidly changing their strategies to meet increasing demand for smart kitchen appliances. For instance, in July 2018, Xiaomi launched the Mijia smart air conditioner with features such as LED display, where users can control cooling times and temperature through their Mi home apps.

However, Asia is an emerging economy that has become a prominent region for growing demand for smart kitchen appliances. Additionally, higher purchasing power and rising middle class over the years will fuel sales of smart kitchen appliances in the region. Thus, China is expected to register a CAGR of nearly 20% in the assessment period.

Category-wise Insights

Why are Smart Refrigerators in High Demand?

Smart refrigerators hold a major part of the market share as leading companies are putting in efforts to develop advanced refrigerators with innovative technologies.

For instance, Samsung recently introduced a model that allows users to pay for groceries through mobile apps for the orders they place. Features that companies are focusing on to inculcate in smart refrigerators are voice assistant, speakers, and touch screens that allow users to play music, make a shopping list, and even connect with other home appliances.

Moreover, rise in demand for smart refrigerators can be attributed to the millennial population who prefer working with technology in a much more efficient way. All these factors have led to refrigerators accumulating a share of more than 45% in the forecast period for smart kitchen appliances.

Which Appliances are Expected to Witness Higher Sales in the Near Future?

Smart cookware and cooktops are projected to hold major market share after smart refrigerators, and will drive overall demand. Innovative solutions embedded with IoT (Internet of Things) are forecasted to be a major driver for cookware and cooktops as far as smart kitchen appliances are concerned.

Rapid urbanization, long working hours and hectic lifestyle are driving the sales for cookware and cooktops. In addition, the end user demand for appliances that would save energy has increased over time. Thus, cookware and cooktops are expected to account for 25% of market share. 

Competitive Landscape 

Key players rely on a blend of organic and inorganic strategies to deepen penetration across lucrative markets. These strategies include product launches, collaborations with key players, partnerships, acquisitions, and strengthening of regional and global distribution networks.

• For instance, Electrolux, in collaboration with Google, is expanding its kitchen products by integrating Google assistant that enables users to control kitchen appliances using voice commands.
• Additionally, in 2018, BSH Hausgeräte GmbH acquired nearly 65% of the global food platform Kitchen Stories to become an integrated software, hardware, and service provider.
• In August 2021, Samsung launched Smart Induction in Built in Cooktop with Wi-Fi that helps to cook meals faster and reducing energy and emissions.

Report Scope

Attribute	Details
Market size value in 2020	USD 10 Billion
Market forecast value in 2031	USD 93 Billion
Growth Rate	CAGR of 25% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S Canada Germany U.K France Italy BENELUX Russia China Japan South Korea India ASEAN Australia New Zealand Brazil Mexico GCC South Africa
Key Market Segments Covered	Product Application Region
Key Companies Profiled	Samsung Electronics Co. Ltd. Haier Group LG Electronics Inc. AB Electrolux BSH Home Appliances Corporation (Robert Bosch GmbH) Panasonic Corporation Whirlpool Corporation
Pricing	Available upon Request

Key Segments Covered

• Product

  • Smart Refrigerators
  • Smart Dishwashers
  • Smart Ovens
  • Smart Cookware and Cooktops
  • Smart Scales and Thermometers

• Application

  • Residential Smart Kitchen Appliances
  • Commercial Smart Kitchen Appliances