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The smart plug market size is forecast to increase by USD 22.80 billion, at a CAGR of 48.4% between 2023 and 2028. The market Market growth relies on various factors, including manufacturers leveraging connectivity as a distinguishing feature. This trend underscores the industry's focus on providing consumers with interconnected and intelligent devices that enhance convenience and functionality. Additionally, there's a growing emphasis on energy efficiency among consumers, driving demand for products that minimize energy consumption and reduce environmental impact. Furthermore, the increasing popularity of smart homes contributes significantly to market expansion, as consumers seek integrated solutions that streamline daily tasks and enhance home automation. These factors collectively shape the trajectory of the market, highlighting the importance of innovation, sustainability, and connectivity in meeting evolving consumer needs. As manufacturers continue to innovate and adapt to these trends, the market is poised for sustained growth, offering a diverse range of connected and energy-efficient solutions to consumers worldwide.
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The market is witnessing rapid growth driven by advancements in Internet of Things (IoT) technology and the proliferation of smart home gadgets. Enabled by protocols like Bluetooth and Wi-Fi, these plugs offer seamless integration with popular voice assistants such as Google Assistant and Siri. Leveraging Bluetooth LE (Low Energy), they ensure efficient energy monitoring and conservation, addressing security issues through robust IoT frameworks. With applications ranging from home automation to industrial and commercial segments, smart plugs play a crucial role in energy conservation initiatives and smart city projects, positioning them as pivotal components in the smart home industry. The market is growing with innovations such as IoT-based plugs and smart voice recognition technologies. Wi-Fi-based products are central to the home automation industry, enhancing connectivity and convenience.
One of the key factors driving the market development is the growing demand for smart homes. There is a growing demand for smart homes across the world due to the increasing interest of home buyers in technology-driven solutions. Additionally, smart homes are comprised of built-in smart appliances that are priced at a premium as they hold a niche position in the consumer electronics market.
Moreover, it is not financially viable to adopt built-in built-in smart appliances for the majority of the population. mainly in underdeveloped or developing countries. As a result, there is an increasing demand for smart plugs as they are cost-effective alternatives for built-in smart appliances. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping market growth is the increasing development of smart cities. There is an increase in demand for the concept of smart homes as consumer needs are evolving and are significantly focusing more on using automated electronic devices. There is a rise in the adoption of smart plugs for extensive use in home appliances to connect different devices with smartphones.
Moreover, the penetration of the smart home concept is high in North America and Europe as well as developing economies such as APAC. For instance, Amazon Alexa, an intelligent personal assistant launched by Amazon, allows smartphone-enabled control of smart home devices. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The high cost of smart plugs is one of the key challenges hindering the market growth. Some of the main factors that are negatively impacting the market include the high cost of smart plugs and the long wait for ROI. Even though the overall cost of the smart plug seems low, it actually costs 8-10 times more than a regular plug socket.
Moreover, there is a significant challenge for several manufacturers to convince consumers to upgrade their plug sockets to smart plugs due to these factors. Additionally, it has become essential for market players to enter into the affordable luxury segment that has potential customers, unlike traditionally targeting the high-end consumer segment, which is a niche segment. Hence, such factors are expected to hinder the market growth during the forecast period.
The residential segment is estimated to witness significant growth during the forecast period. One of the main factors that is significantly contributing to the growth of the residential segment is the increasing demand for smart appliances. There is an increasing adoption of smart plugs among the middle-class population as built-in smart appliances are expensive. Therefore, smart plugs are a cost-effective substitute for built-in smart appliances.
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The residential segment was the largest segment and was valued at USD 831.50 million in 2018. Thus, there is significant growth in the market as energy-efficient smart home products in the residential segment. Another factor that is fuelling the adoption of smart plugs and smart voice recognition in the residential sector is the government mandates for energy efficiency in several types of household appliances. Additionally, some of the key advantages offered by smart plugs in the residential segment include remote monitoring, energy control, scheduling, and more. Hence, factors such as energy efficiency offered by smart plugs are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. One of the main factors that is significantly contributing to the growth of the market in North America is the growing popularity and adoption of smart homes in the region. The US is the main country in North America with the highest adoption of smart plugs.
For instance, smart home penetration in the US is nearly 69%, with the majority of households having a smart home device. The main factor that is fuelling the high demand for smart homes is the technological advances and growing awareness among the US population. Thus, the rising internet penetration in the region will fuel the high popularity of smart plugs which is positively impacting the market growth in the region. Hence, such factors are expected to drive market growth in North America during the forecast period.
Technavio has detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
BroadLink: The company offers smart plug such as BroadLink SP4D smart plug socket that supports both 2.4G and 5G dual band WiFi.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the landscape of the market, technological innovations such as BI Enabled Market Research have revolutionized market insights, enabling companies to make informed decisions. With a focus on energy efficiency standards, smart plugs are integrating seamlessly into the IoT framework, leveraging cellular Internet of Things and 5G New Radio (NR) for enhanced connectivity and performance. Technologies like Massive IoT, NB-IoT, and Cat-M technologies are driving the evolution of smart 16A WiFismart plug, facilitating applications like smart metering and intelligent building infrastructure control. From smart farming to home automation, brands like Smarteefi, MOKO Smart, and MK117NB Smart Plug are leading the charge, offering versatile solutions in narrowband IoT. Events like CES 2023 showcase the latest advancements, including compatibility with the Matter protocol. With segments catering to the Wi-Fi segment, Bluetooth segment, industrial segment, and commercial segment applications, the market continues to expand, promising a future of efficient and interconnected devices.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 48.4% |
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Market Growth 2024-2028 |
USD 22.80 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
35.13 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, Germany, UK, China, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BroadLink, ConnectSense, D Link Corp., EDIMAX Technology Co. Ltd., Halonix Technologies Pvt Ltd., Havells India Ltd., Hon Hai Precision Industry Co. Ltd., Indiegogo Inc., Insteon Technologies LLC, ITEAD Intelligent Systems Co. Ltd., Lenovo Group Ltd., Leviton Manufacturing Co. Inc., Panasonic Holdings Corp., Revogi Innovation Co. Ltd., Satechi LLC, Syska Led Lights Pvt. Ltd., TP Link Corp. Ltd., Vesync Co. Ltd., Wipro Ltd., and Xiaomi Communications Co. Ltd. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Connectivity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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