Smart Bathroom Market

Market Overview

The global smart bathroom market size was valued at USD 4.5 Billion in 2022. It is estimated to reach USD 9.8 Billion by 2031, growing at a CAGR of 11.4% during the forecast period (2023–2031).

An automated plumbing and sanitary system that can be operated by smartphones, voice assistants, and other smart devices is called a "smart bathroom." It includes cutting-edge technological hardware readily accessible in various sizes, shapes, colors, and textures, such as touchless faucets, sensor-enabled soap dispensers, automatic cistern systems, smart windows, and hand dryers. It improves energy efficiency, is practical, simple to use and control, economical, and cost-effective.

The smart bathroom offers centralized management over appliances, including lighting, heating, cooling, automatic doors, digital faucets, soaking tubs, and toilets. It helps to improve the bathroom's appearance and offers total control and customization options. In addition, it is quite helpful for elderly and disabled people who have trouble managing daily tasks. Therefore, smart bathrooms are frequently used worldwide in both the residential and commercial sectors.

Market Dynamics

Market Drivers

Rising Home Remodelling Projects and Bathroom Renovations

With rising home prices, consumers increasingly invest in home improvement or remodeling projects rather than buying new homes. The increased value proposition of renovated bathrooms, which adds up more value to the property, has also significantly driven customers to upgrade their spaces with technologically advanced products, and this trend holds genuine for bathrooms as well. Another factor benefiting the market is that an increasing number of millennials and younger consumers are buying homes, particularly older homes that require more repairs.

The rising adoption of water-saving plumbing fixtures with sustainable and eco-friendly features in remodeling or construction projects is significantly boosting the smart bathroom market. The federal standards established by the U.S. Energy Policy Act of 1992 for plumbing fixtures have contributed to water conservation and sustainability. This act also provides rebates to consumers who have replaced plumbing with low-flow alternatives. Thus, the rising need for low-flow plumbing fixtures will drive market growth.

Increasing Construction in Residential and Commercial Sectors

With the rapid expansion of real estate and commercial construction, the market for smart bathrooms will witness higher demand from these segments. According to the World Property Journal, the U.S. housing market's combined value hit USD 33.6 trillion in January 2020. Increasing infrastructural developments and new building permits in the region are expected to expedite the market.

Rapid commercial construction, particularly in the hospitality industry, also fuels the demand for smart bathrooms. The hotel industry is a substantial contributor to the hospitality sector, supporting the development of more hotels. The thriving tourism and real estate industries and various infrastructure developments in the hospitality sector will continue to boost the market for smart bathrooms over the forecast period.

Market Restraint

Lack of Indoor Plumbing Across Households

Inadequate access to indoor plumbing has limited the scope of the smart bathroom market globally, and this trend is also evident in North America. According to a blog post by The Hill, as of November 2020, more than a million Americans lived without indoor plumbing, most of them living in big cities. According to the post, an estimated 471,000 households or 1.1 million individuals lack connection to piped water.

Furthermore, according to the study, nearly three-fourths of the anticipated 1.1 million people in the U.S. without access to a piped water connection are located in cities, which identified areas with high concentrations of plumbing poverty. This increasing water scarcity is forcing consumers to rely on toilet paper and tissue rolls in residential and commercial bathrooms, severely hampering the market for plumbing fixtures and smart bathroom accessories.

Market Opportunities

Emergence of Smart Bathrooms with Popularity of Smart Home Concept

Technological advancements have been significantly driving the bathroom industry, from the growing demand for smart homes to pipes that notify you when they spring a leak. The rising construction of smart homes—a combination of luxury and convenience—also boosts the demand for smart bathrooms. Consumers are more incentivized to design bathrooms that offer a spa-like experience and have sensor-activated smart fixtures and faucets built in. These digital fixtures and bathroom accessories not only help conserve water and energy but also offer the ultimate convenience through different features such as reduced tap flow, digital temperature control settings, touchless technology, infrared tap technology, and programmable features, which include timed settings for brushing, washing up, or taking a shower.

In line with these trends, manufacturers are introducing new technology-led faucets in bathroom fittings to drive the smart bathroom market. For instance, Grohe's infrared sensor-operated Eurocube E taps dispense water only when hands are placed over the sensor, reducing water wastage. Similarly, Greywater recycling is an environment-friendly development rapidly becoming more accessible for consumers across the region. The growing interest in Nature-Based Solutions (NBS) designed for greywater treatment in the last decade is also expected to spur the demand for smart bathroom fixtures, creating opportunities for market expansion.

Regional Analysis

The global smart bathroom market share is bifurcated based on region into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa. 

North America Dominates the Global Market

North America is the most significant global smart bathroom market shareholder and is anticipated to boost at a CAGR of 10.02% over the forecast period. The advanced technologies for energy conservation and maintaining hygiene drive the North American smart bathroom industry. In the U.S., smart bathrooms are gaining popularity to counter rising energy costs. Introducing new products and technology in the market, specially designed for commercial properties, is a major catalyst for this segment's growth in the region. Additionally, high expenditure power and a growing focus on offering a luxurious experience to consumers are resulting in the increasing penetration and adoption of smart bathroom products. In 2018, Bunzl Canada announced the launch of its latest technology-based facility management solution, WandaNEXT. This IoT restroom monitoring system uses a touchscreen interface to enable customers in retail, healthcare, airports, conference centers, and commercial environments to have a predictable, high-quality restroom service experience. WandaNEXT can be found in facilities throughout Canada and the U.S., including the Edmonton International Airport, which experienced a 300% drop in email complaints from passengers about the state of restrooms through the use of this system. This is another major driver for North America's market growth.

Europe is estimated to exhibit a CAGR of 10.5% over the forecast period. Increasing penetration of the smart home concept in the region is a major driver for market growth. According to IoT analyst firm Berg Insight, there were 30.5 million smart homes in Europe at the end of 2018. At the end of 2023, the installed base in the region is scheduled to grow to 83.2 million residences or 35% of the market. This creates ample opportunities for manufacturers to increase their market share. With the high levels of money in Western European countries, the market for smart bathrooms offers profitable business potential in terms of premium product offerings, cutting-edge designs, and sophisticated distribution networks. In addition, the COVID-19 pandemic has caused consumers to spend more time at home. Hence, manufacturers are trying to gain a market share by addressing the bathroom remodeling concept and offering a home spa experience. This is a major driver for the market growth of smart bathrooms over the forecast period.

The Asia-Pacific market is predicted to grow fastest over the forecast period. As per a study published by Google and Accenture, in 2020, the household penetration of connected home devices in Australia was 22%, South Korea was 21%, and Japan was 13%. However, countries such as India, Indonesia, and Thailand each had a penetration rate of 2%. In addition, the rising spending of consumers, coupled with the increasing penetration of smart homes, is a primary catalyst for the growth of the smart bathroom industry in the region. As per Lera Smart Home Solutions, 24.9% of Australian households feature some smart home technology, which is expected to increase to 41.9% by 2023. This is a major driver for the region's increasing adoption of smart home technology.

The Middle East and African market is predicted to grow moderately. As per the Parliamentary Monitoring Group (PMG), South Africa is urbanizing rapidly; 63% of South Africans live in urban areas, and the statistics will rise to 71% by 2030. By 2050, eight in ten people will be living in urban areas, which, in turn, will increase the demand for smart bathroom products in the region. According to the Ministry of Municipal and Rural Affairs of Saudi Arabia, approximately 82.1% of the population lives in urban areas, whereas 17.9% live in rural areas. This is a primary driver for the growth of smart bathroom market in the region. Continuous expansion in the commercial sector is expected to result in the construction of several hotels, public entertainment areas, and restaurants, which would generate a high demand for smart bathrooms in the upcoming years.

Segmental Analysis

The global market is segmented by product and application.

Based on product, the global smart bathroom market share is bifurcated into smart toilets, smart soap dispensers, smart faucets, smart showers, and others. 

The smart toilet segment dominates the global market and is projected to develop a CAGR of 10.8% over the forecast period. This demand for smart toilets is due to rising consumer concerns regarding health and hygiene. Smart toilets have several features, like a UV-bacterial killing light nozzle and an anti-bacterial seat. Moreover, smart toilets are largely being adopted by the niche segment of the market as they have become a lifestyle statement for many in developed and developing nations like the U.S., France, Germany, India, and China. Another factor that drives the growth of smart toilets is the ability of these bathroom fixtures to provide integrated solutions such as water and energy conservation. In addition, several smart bathroom market players are creating smart toilets with water-saving technologies, such as composting, low flush, and dual flush, in response to the increasing demand for these products and the growing understanding among consumers of the necessity of conserving water to manage its scarcity and ensure sustainability.

Smart soap dispensers are increasingly replacing traditional soap dispensers and containers. Soap bars are considered extremely unhygienic, especially in public toilets, as they can carry germs and other harmful micro-organisms. Hence, there is a drastic shift and adoption of smart soap dispensers in public restrooms. Several industries, like hospitality, healthcare, and entertainment, are adopting smart soap dispensers, especially in developing countries like Bangladesh, Bhutan, Sri Lanka, and India. COVID-19 has also driven the demand for smart soap dispensers across the world. Small- and medium-scale players have also entered the market owing to the outbreak of COVID-19. The product demand is driven by the touchless feature of smart soap dispensers owing to the rise in demand for zero physical contact products and the need to wash hands frequently to avoid the spread of germs and bacteria.

Based on application, the global market for smart bathroom is segmented into residential and commercial. 

The residential segment owns the highest market share and is estimated to boost at a CAGR of 10.2% during the forecast period. Increasing construction in the residential sector across developing economies is opening new avenues for the smart bathroom industry. Governments from all around the globe have been launching measures in recent years to support cutting-edge and environmentally friendly home development. According to the World Economic Forum, approximately 200,000 people migrate to urban areas daily for affordable housing and infrastructure. Such industry trends are anticipated to bode well for smart bathrooms over the forecast period. The increasing number of millennials buying homes, particularly pre-owned homes, is fueling the demand for smart bathrooms. As per a study by HomeAdvisor, millennials are increasingly investing in home improvement projects each year compared to other age groups. These tech-savvy homeowners want to integrate their homes with the latest technologies and connected products, driving the demand for smart bathrooms.

The significant growth of the hotel industry and the rising number of restaurants and eateries globally are projected to propel the demand for smart bathrooms over the forecast period. Moreover, the increasing development and expansion of commercial infrastructure across developing economies support this market's growth. Over the last few years, the global expansion of the hospitality sector, including hotels, resorts, and hospitals, has offered the smart bathrooms market immense opportunities to grow. In addition, Europe is one of the largest markets within the hospitality sector, followed by the U.S. Major hotel chains are expanding their operations at a significant rate. For instance, according to data provided by TOPHOTELPROJECTS, 518 projects with 90,000 rooms were planned to be completed by 2020, whereas 254 projects are in the pipeline for 2021. These trends are anticipated to offer numerous opportunities to install various smart bathroom products and fixtures over the forecast period.

Recent Developments

• January 2023- Kohler introduced new smart toilets, faucets, and water monitoring systems at CES 2023 for the company's 150th anniversary to assist the global community in addressing sustainability.

• March 2023- Kohler Co., a leading kitchen and bath design company, announced its collaboration with renowned photographer Douglas Friedman to launch the new KOHLER Numi 2.0 Honed Black Smart Toilet and revitalize an iconic 1980s print ad.