- OEMs to to focus on various technical aspects and companies to invest more in R&D
- The smart appliances market in smart homes is estimated to witness a CAGR of 12%-15% in the next five years
- Samsung, LG, Bluestar and Voltas have been the game changers in Smart ACs manufacturing
- LG and Samsung are at the forefront introducing such smart refrigerators and has seen immense growth
- Smartphone makers such as Xiaomi Mi and OnePlus have entered the smart TV market in India, disrupting the market share of leaders such as Samsung, LG and Sony
- V Guard, Orient and Racold have launched an app-enabled water heater with IoT Connectivity and cloud bases functionality
According to a recent analysis presented by Frost and Sullivan, smart appliances’ current penetration is 5% in India. This is also expected to each 12% by FY24. The growth of these appliances in India will be driven by the more than 500 million smartphones users in India, mobile connectivity and easy-to install applications.
LG Electronics, Samsung, Whirlpool and Panasonic are some of the key players in the smart appliances space in India. The awareness of smart technology across appliances has created an internet-enabled ecosystem. Rapid internet has enabled consumers to purchase smart and connected products. Smart applications are expected to have high uptake in urban centres concerning the large population size in India and concentration of technology-save users in urban centres.
Coming to the key trends, Urbanization and digitisation are the key macro trends influencing the Indian smart appliances market. Technological advancement in smart appliances has emerged in the last few years. Instead of manually operated remote controls, smart appliances can now communicate through voice assistants such as Google Home, Alexa (Amazon) and Siri (Apple).
The smart appliances market in smart homes is estimated to witness a CAGR of 12%-15% in the next five years. Due to the COVID-19 crisis, there are chances for a subdued demand in the short term with demand dropping by 20% – 30%, but in five years the CAGR is likely to remain unaffected
Smart air conditioner
It has been reported that air conditioners with additional features such as Wi-Fi enabled technology are finding greater acceptance. These devices allow the temperature to be controlled from any place using a mobile application. Brands like Samsung, Bluestar and LG have advanced features like smart cooling, bio-sleep, señor technology and app controls, which have been their Unique Selling Proposition (USPs) in attracting customers. Along with these features, Voltas has in-built voice enabled technology to control on off and change the temperature using voice command in English or Hindi.
Meanwhile, smart refrigerators are in a progressive stage as well. Domestic refrigerators with 35% penetration India are predominantly bought by customers based on their capacity and cooling requirements. Smart applications in refrigerators are “good to have” additional features, available only in high end refrigerators, which are priced at a premium. LG and Samsung are at the forefront introducing such smart refrigerators. This category is expected to see growth in revenue once demand increases in the next two to three years. Smart refrigerators offer tremendous convenience and efficiency.
The smart Tv segment in the Indian market is growing at a rate of 25%, which is mainly driven by the budget smart TVs. These include high-end processor chip and an embedded operating system that supports internet connectivity. The sharing of content between TVs and mobile devices over Wi-Fi, Bluetooth, and near-field communication (NFC) is rapidly growing. Smartphone makers such as Xiaomi Mi and OnePlus have entered the smart TV market in India, disrupting the market share of leaders such as Samsung, LG and Sony. Despite slow penetration of smart TVs in India, it has been able to build an attractive consumer base.
With a CAGR of 10.5%, geysers/water heaters are among the fastest-growing home appliance. Smart geysers with multi-function smart digital displays and smart functionalities are being adopted by a few players in India. Connectivity and remote access to geysers aided by IoT technology enhance and improve the consumer experience. V Guard, Orient and Racold have launched an app-enabled water heater with IoT Connectivity and cloud bases functionality. Brands such as AO Smith, Bajaj and others have smart sensors to monitor the required temperature and a cut-off timer to save energy.