The smart home market as a whole experienced relatively strong growth in 2021 and smart appliances were no exception. The average # of smart appliances owned by US broadband households has roughly doubled from 2020 to 2021. Now, over one-fifth of consumers now own a smart appliance, with more than a quarter intending to purchase a smart appliance in the next 6 months.
All smart appliances across the board saw record adoption and purchase rate, with the adoption rate at least doubling for every appliance. Those already in the smart home market continue to increase the number of smart home devices they own and are expanding into smart appliances. Familiarity with smart appliances is rising, and perceptions of affordability have improved across the board. Key drivers include:
- Price for most smart home appliances decreased in 2021 but are on the rise in 2022 due to inflation.
- The consumer base for smart home devices in general largely consists of segments with incomes and lifestyles adaptable to the pandemic. Such households saved money, paid down record levels of debt, and increased spending on home improvement products and on technology that enhanced the comfort, convenience, and security of their home.
- Home renovations were up 15% in 2021 according to Houzz Research. Parks Associates’ research has found consumers’ highest intentions to buy smart products occur as they plan to move or renovate their home, which likely was a driver in the increased rate of smart appliance adoption in 2021.
- Purchase intentions going into 2022 were up for every smart home category Parks Associates measures. Consumers are upgrading their home environment as well. 33 million households (29%) report they are likely to start a major home renovation in the next 6 months, which oftentimes includes implementing an upgraded smart home product.
While smart appliances saw strong growth in 2021, 2022 looks to be a year of regression – or at least slower growth, with purchase intentions showing sharp decreases at the end of 2021. This could be due to the end of the pandemic boom of home renovation projects and home moves which associate strongly with smart home product adoption, and the unstable economic conditions from inflation, supply chain, and energy price issues that have started to make a stronger impact on consumers' daily life.
This is an excerpt from Parks Associates Smart Appliances Market Assessment. Smart Product Market Assessments provide a comprehensive and deep analysis of a single smart product market. Parks Associates analysts identify key market drivers and barriers and assess market growth via topline market forecasts.
This research also includes consumer data for smart appliances, including trending data across years and deep dive questions on smart appliances usage, pain points, and preferences. Key questions addressed:
- What are the key brands in the smart appliances market?
- What are the top connected platforms across appliance categories?
- How do smart appliances impact energy usage and consumer health?
- What are the adoption trends for smart appliances since 2019?
- What is the buyer journey and purchase intentions for smart appliances?
- What are consumers’ feature preferences and their user experience with smart appliances?
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