Smart Appliances - South Korea

South Korea

Revenue in the Smart Appliances market is projected to reach €3.3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.91%, resulting in a projected market volume of €5.5bn by 2029.
In the Smart Appliances market, the number of active households is expected to amount to 35.9m users by 2029.
Household penetration will be 20.9% in 2024 and is expected to hit 36.1% by 2029.
The average revenue per installed Smart Home currently is expected to amount to €314.50.

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Analyst Opinion

The Smart Appliances market in South Korea is experiencing significant growth due to a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea are driving the demand for smart appliances.

With a strong emphasis on efficiency and convenience, consumers are increasingly opting for appliances that can be controlled remotely and provide real-time data. Smart appliances offer features such as energy-saving modes, personalized settings, and integration with other smart devices, which align with the preferences of tech-savvy South Korean consumers. Trends in the market further contribute to the growth of the Smart Appliances market in South Korea.

The increasing adoption of Internet of Things (IoT) technology and the growing popularity of smart homes are driving the demand for smart appliances. South Korea has one of the highest internet penetration rates globally, making it an ideal market for IoT-enabled appliances. Additionally, the government's focus on promoting smart cities and sustainable living further accelerates the adoption of smart appliances.

Local special circumstances also play a role in the development of the Smart Appliances market in South Korea. The country has a highly competitive consumer electronics industry with several domestic and international players. This competition drives innovation and product development in the smart appliances segment.

South Korean consumers are known for their brand loyalty and willingness to invest in high-quality products, which creates a favorable environment for the growth of the smart appliances market. Underlying macroeconomic factors contribute to the expansion of the Smart Appliances market in South Korea. The country has a strong economy with high disposable incomes, allowing consumers to afford premium smart appliances.

Additionally, the government provides various incentives and subsidies to promote the adoption of energy-efficient appliances, which further boosts the demand for smart appliances. In conclusion, the Smart Appliances market in South Korea is experiencing significant growth due to customer preferences for efficiency and convenience, market trends such as IoT adoption and smart homes, local special circumstances including competition and brand loyalty, and underlying macroeconomic factors such as a strong economy and government incentives.

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.