The smart home market is rapidly evolving to include more products that are accessible to everyday consumers. Gone are the days when connected home products are only affordable to the luxury segment. That isn’t to say that luxury products don’t still account for a significant amount of the market but solutions such as Alexa from Amazon and Google Nest have familiarized the everyday consumer with the benefits of smart home products.
As a result, it comes as no surprise that a new report from Grand View Research estimates that the global smart home appliance market will double in size from 29.03 billion in 2022 to $58.51 billion by 2030. Within that global growth, the United States market is expected to grow at a healthy CAGR of 7.7 percent.
Although this rate is slightly below the global average, there is still a significant opportunity for retailers to capitalize. One channel for success is eCommerce. As of 2022, 63.9 percent of sales in connected appliances occurred through offline channels. However, that percentage is predicted to shrink due to expansions in eCommerce tools and digitalization, especially as younger populations move into the consumer spotlight.
We harp on this all the time but over the next 10 years having a strong eCommerce presence will be key to success. Is your business prepared?
Here are a few more important takeaways from the report.
Within the smart appliances category, smart washing machines accounted for 35 percent of sales in 2022 and are expected to retain a strong market share in the next decade. This strong performance is expected to be bolstered by increased environmental consciousness from consumers and rising per capita incomes.
Surprisingly, sales of smart air purifiers are expected to grow the most with a CAGR of 10.2 percent. According to the report from Grand View Research, smart air purifiers offer the strongest benefits when compared to traditional air purifiers. “These devices are more efficient as they feature touch-sensitive controls, real-time air quality detection and reporting, voice control, and Wi-Fi capabilities.”