The global smart kitchen appliances market size was valued at USD 7.8 billion in 2022. It is estimated to reach USD 56 billion by 2031, growing at a CAGR of 18.4% during the forecast period (2023–2031).
Smart kitchen appliances are as varied as any kitchen gadget. These appliances improve cooking by making it faster and more precise. Smart kitchen gadgets combine tech with traditional appliances and guide one through cooking to help make cooking easier. Smart kitchen appliances allow one to achieve more than the average ordinary appliance. It allows one to change settings through their smartphone, download recipes, check up on cooking times and even take a peek inside the fridge while shopping.
The design of smart kitchen appliances makes them more energy-efficient and convenient to use than conventional appliances. These kitchens are built to be energy and time efficient. Their primary goals are sustainability and effectiveness. They are a synthesis of technologies, thoughtful designs, and eco-friendly components. Blenders, coffee makers, weighing scales, and other tiny appliances are small appliances, whereas smart appliances mostly include refrigerators, ovens, dishwashers, cooking equipment, and cooktops.
Due to rising costs linked with housing prices and mortgage rates, consumers increasingly invest in home improvement or remodeling projects to change their traditional household structure. Consumers are increasingly inclined toward making the kitchen the focal point of their homes, renovating and decorating their kitchens following current trends and products. Consumers' need for technological advancements, coupled with shifting social dynamics, has fueled the growth of smart kitchen appliances. In addition, the growing culture of avid cooks, seasoned hosts, and busy families encourages consumers to invest in smart kitchen appliances for greater convenience and hassle-free cooking.
Furthermore, the increasing number of millennials buying homes, particularly older homes, drives the demand for modern kitchens. According to a survey conducted by OnePoll for Bernzomatic with a sample of 2,000 U.S. homeowners from August 3 to August 7, 2020, compared to other generations, millennials have been the busiest, with 81% having tackled a home improvement project since March 2020. While stay-at-home orders were in force, the poll looked at the numerous home renovation tasks American homeowners did. These developments are enhancing the market for smart kitchen appliances.
Social media have facilitated the rise of home cooking and recipe testing. Pictures and recipes of appetizers, desserts, entrees, cocktails, and other items are easily available on social media. Cooking shows on the TV and the web, as well as regional and international food magazines, have also greatly contributed to the trend of cooking at home, which has driven the sales of smart kitchen appliances across the globe.
Consumers nowadays are health-conscious to the point where they are interested in preparing their meals at home to avoid potentially harmful preservatives, additives, and processing methods. The popularity of cook-at-home meals has been boosted by millennials, who are also fueling the expansion of smart kitchen products. Moreover, increasing technological trends such as the Internet of Things (IoT) and Artificial Intelligence (AI) enabled the adoption of smart kitchen appliances in residential and commercial sectors worldwide, which is also among the key factors driving the market growth.
Smart kitchen products are priced higher due to features such as multifunctionality and huge sizes. On the other hand, the exorbitant prices of these products prevent the middle-income group from purchasing them. Furthermore, high electricity consumption rates of smart kitchen appliances result in high electricity costs in commercial and domestic kitchens. According to the U.S. Environmental Protection Agency (EPA), commercial kitchens are a highly energy-consuming segment, with approximately 2.5 times more energy per square foot than any other commercial space. Similarly, according to Direct Energy, most electric ovens draw an average of 3,000 watts. Therefore, smart electric kitchen appliances incur huge energy consumption, resulting in high electricity costs for restaurant and building owners, hampering market expansion.
Technological advancements have been significantly driving the smart kitchen appliances industry, from the growing demand for smart homes to pipes with a leak detection tool that triggers an alert if there's a leak. With the growing number of young people purchasing homes, traditional kitchen fittings are no longer adequate. This has accelerated the adoption of new technology like touchscreens, voice control, Wi-Fi, sensors, and anti-fingerprint coatings in kitchen appliances. Moreover, the growing popularity of smart homes, combining elegance and convenience, drives the demand for smart kitchen appliances.
Consumers are more inclined toward modular kitchens with built-in smart fittings and appliances that operate on sensors. These smart kitchen gadgets give the user timely product status when coupled with a smartphone or other device. For instance, a smart oven can be connected to apps that provide cooking tips, voice control, self-cleaning ability, and reduced waste generated. Smart refrigerators also keep track of the fridge's contents and alert the user when an item is getting close to expiring. These innovations and developments in smart kitchen appliances create opportunities for market growth.
The global smart kitchen appliances market is segmented by product type and application.
Based on product type, the global smart kitchen appliances market is bifurcated into smart refrigerators, smart cookware and cooktops, smart dishwashers, smart ovens, and other appliances.
The smart refrigerators segment dominates the global market and is projected to exhibit a CAGR of 17.4% over the forecast period. Smart refrigerators are becoming more common as smart cities and smart infrastructure become more widely adopted. The IoT market has grown noticeably over the years, with smart home appliances and devices such as Google Nest, Ring, Alexa, and smart refrigerators making homes more intelligent. As a result, various companies are improving existing offerings or introducing new ones to meet the growing needs of tech-savvy customers. For instance, in July 2020, Samsung launched a connected refrigerator, SpaceMax Family Hub, to expand its IoT portfolio. This refrigerator will have properties such as automatic meal planning, an inside camera, connection to other smart appliances, including smartphones, and also let consumers watch TV shows on the refrigerator screens.
The rising cost of upgrading or renovating kitchens is among the main factors promoting the growth of the smart dishwasher market. Due to increased urbanization, kitchen renovation or remodeling results from changing customer habits and tastes. Moreover, consumer enthusiasm for constructing a modular kitchen leads to the increased uptake of smart kitchen appliances such as dishwashers. Smart dishwashers with Wi-Fi connectivity are a significant advancement in the smart dishwasher market. These Wi-Fi-enabled dishwashers allow consumers to keep track of the cleaning process and start and stop cycles from their phone or tablet. For instance, LG Wi-Fi-powered smart dishwashers have built-in SmartThinQ technology that provides mobile alerts when the process is over.
Based on application, the global smart kitchen appliances market is segmented into residential and commercial.
The residential segment owns the highest market share and is estimated to exhibit a CAGR of 19.3% during the forecast period. The way consumers operate in home kitchens is substantially changing thanks to technology. With these smart kitchen appliances, people can perform more tasks and utilize their time more efficiently. As smart appliances replace traditional appliances in the kitchen, millennials and the young population are also taking an interest in cooking. Moreover, manufacturers are offering Internet of Things (IoT) technology in these appliances to attract more customers. Growing attraction towards avid cooking as a result of increasing awareness through famous cooking shows programmed on TV is developing the interest of consumers towards buying these high-end smart kitchen appliances. Likewise, growing travel and tourism pique consumers' interest in various cooking styles and multi-cuisine meals, motivating them to choose smart home appliances.
Increasing spending of consumers towards eating outside is influencing restaurant owners or public eatery points to build a kitchen with these smart appliances for good quality and tasty food faster. The U.S. Department of Agriculture (USDA) figures show that in 2019, Americans spent an average of 4.6% of their disposable personal incomes on meals outside the home. These market trends are estimated to boost the demand for smart kitchen appliances in the commercial sector over the forecast period. In addition, the increasing occurrence of Quick Service Restaurants (QSR) chains owing to the greater dependency of the younger population on fast food joints is increasing the application of smart kitchen appliances such as grillers, fryers, ovens, and cooktops. These smart appliances reduce human error, lower human dependency, and increase preparation consistency. Therefore, commercial players are investing more in these smart kitchen appliances globally.
North America Dominates the Global Market
Based on region, the global smart kitchen appliances market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.
North America is the most significant global smart kitchen appliances market shareholder and is anticipated to exhibit a CAGR of 18.31% during the forecast period. North America is a lucrative smart kitchen appliance market due to the region's rising number of restaurants, pubs, and hotels. North America is a notable region for the smart kitchen appliances market because several high-priced hotels offer world-class facilities and feature expensive and exquisite kitchen fittings. Another noteworthy trend in North America is increased investments in residential construction projects. As per Statistics Canada, in August 2020, multi-unit investment profits were reported in nine provinces of Canada, led by Alberta (+42.4%) and Quebec (+15.8%). Similarly, increasing residential and commercial construction projects will boost regional demand for smart kitchen appliances. A significant driver of this market's expansion is the entry of new items and technology specifically made for commercial premises. 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 kitchen appliances in the commercial segment.
Europe is estimated to exhibit a CAGR of 16.3% over the forecast period. Tourism is among European countries' key sectors, directly promoting the region's hospitality sector. According to the statistics provided by TOPHOTELPROJECTS GmbH, in May 2021, around 1,955 hotel schemes were in the pipeline in Europe. The region's need for smart kitchen appliances will grow as hotels become more prevalent over the forecast period. For the past few years, the region's food service industry has experienced rapid expansion. As per the statistics provided by the Food Service and International News for the HoReCa sector, the Quick Service Restaurants QSR segment witnessed a growth of 10.9% in the region. This expansion is attributed to the increasing number of acquisitions, expansions, and delivery services by key players, including McDonald's, Yum! Brands, Burger King, Domino's Pizza, and Starbucks. These consumer trends are increasing the workload in the food service sector, which subsequently drives the demand for smart kitchen appliances.
In Asia-Pacific, regional appliance manufacturers are expected to drive the smart kitchen appliance market. In May 2021, Samsung organized 'Bespoke Home' to celebrate the global expansion of its customizable refrigerator lineup. The event was a new platform to showcase an expanded Bespoke product portfolio, including new lifestyle appliances and connected solutions. Furthermore, the commercial application of smart kitchen appliances is expected to experience rapid growth over the forecast years. The hotel industry owes its growth to travel and tourism across Asia-Pacific. According to the World Travel & Tourism Council (WTTC), in 2017, travel and tourism directly contributed about USD 714 billion to the region's economy. This opens up growth avenues for smart kitchen appliances in the Asia-Pacific.
Central and South American countries are witnessing record rates of the population moving from poverty to the middle-class group. This signifies the immense potential for household spending supported by governmental initiatives for affordable housing, which would favorably influence the region's demand for efficient and technologically advanced kitchen appliances. Rapid urbanization and rising population in Brazil, Argentina, Peru, and Costa Rica have boosted the region's overall demand for kitchen appliances. In addition, the real estate industry in the region has been developing dramatically in the past few years. According to The Brazilian Chamber of Construction Industry (CBIC), the sale of newly constructed homes in Brazil was more than 24,500 units in the first quarter of 2018, which is around 22.3% higher when compared to the preceding year's data. The rise in residential construction in the region is expected to expedite the demand for smart kitchen appliances over the forecast period.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
"Find new revenue generation opportunities"