Smart Appliances - China

China

Revenue in the Smart Appliances market is projected to reach US$17.0bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.24%, resulting in a projected market volume of US$29.0bn by 2029.
In the Smart Appliances market, the number of active households is expected to amount to 240.6m users by 2029.
Household penetration will be 14.3% in 2024 and is expected to hit 48.4% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$242.10.

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Analyst Opinion

The Smart Appliances market in China is experiencing significant growth and development.

Customer preferences: Chinese consumers are increasingly looking for convenience and efficiency in their everyday lives, and smart appliances offer just that. With the rapid urbanization and busy lifestyles in China, consumers are seeking appliances that can help them save time and make their lives easier. Smart appliances, such as smart refrigerators, washing machines, and air conditioners, are equipped with advanced features and connectivity options that allow users to control and monitor them remotely through their smartphones or other devices. This convenience factor is a major driver of the growing demand for smart appliances in China.

Trends in the market: One of the key trends in the smart appliances market in China is the integration of artificial intelligence (AI) and Internet of Things (IoT) technologies. Smart appliances are becoming more intelligent and capable of learning user preferences and adapting to their needs. For example, smart refrigerators can automatically adjust the temperature based on the food stored inside, while smart washing machines can detect the type of fabric and adjust the washing cycle accordingly. This trend is driven by advancements in AI and IoT technologies, as well as the increasing availability of high-speed internet connectivity in China. Another trend in the market is the emphasis on energy efficiency and sustainability. Chinese consumers are becoming more environmentally conscious and are looking for appliances that can help them reduce their energy consumption and carbon footprint. Smart appliances are designed to be energy-efficient and can provide real-time energy usage data to users, allowing them to make informed decisions and optimize their energy consumption. This trend is supported by government initiatives and regulations aimed at promoting energy conservation and environmental protection in China.

Local special circumstances: China has a large and growing middle class population, which is driving the demand for smart appliances. As incomes rise and living standards improve, more Chinese consumers are able to afford smart appliances and are willing to invest in them. Additionally, the Chinese government has been actively promoting the development and adoption of smart appliances as part of its efforts to transform the country into a more technology-driven and sustainable economy. This support from the government has created a favorable environment for the growth of the smart appliances market in China.

Underlying macroeconomic factors: The strong economic growth in China has contributed to the increasing demand for smart appliances. As the country's economy continues to expand, more Chinese consumers have the purchasing power to buy smart appliances. Additionally, the rapid urbanization in China has led to the construction of new residential buildings and the renovation of existing ones, creating opportunities for the installation of smart appliances. Furthermore, the increasing penetration of internet and smartphone usage in China has made it easier for consumers to connect and control their smart appliances, further driving the growth of the market. In conclusion, the Smart Appliances market in China is growing rapidly due to customer preferences for convenience and efficiency, the integration of AI and IoT technologies, the emphasis on energy efficiency and sustainability, the growing middle class population, government support, and the strong macroeconomic factors in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.