The smart plug market was valued at USD 5.1 billion in 2020 at a CAGR of 42.2% over the forecast period 2021 - 2026. The use of and credence on devices that can be managed remotely through a wireless connection is growing globally, which is a fundamental factor that is driving the smart plug market.
- The Smart Plug market, owing to the rapid adoption of home automation technologies, changing consumer preferences inclining towards smart home applications, growing need for a convenient lifestyle, improved energy savings, advancement in IoT framework, high acceptance of technologically advanced products among customers and the average disposable income of the population is expected to grow at a greater pace.
- A number of other factors are slated to have an assertive impact on the demand for smart plugs in the near future. Among them, the growing demand for energy-efficient household appliances will possibly have the highest effect on stoking demand. Besides, smart plugs are also economical than built-in smart appliances. This is also forcing up their swift adoption. Besides, the regulations released by regulatory agencies such as BEE, ASHRAE, and DOE will drive the demand for smart plugs during the projection period.
- The smart-home ecosystem is continuing its accelerated expansion, but market growth rates are directly connected to the speed of 5G implementation. Recent IoT investments by Apple, Amazon, Google, or Alibaba have transformed the landscape noticeably, giving opportunities for all sorts of companies, but have also forced market strengthening. Acknowledging the contemporary moderate user penetration, long product replacement cycles and rising device connectivity, the adoption of smart plugs will improve in the future.
- Advances in wireless technology have also empowered our ability to respond to the COVID-19 pandemic. Countries are using innovative Internet of Things (IoT) solutions, such as contact tracing applications, to mitigate the impact of the virus. These utilize a variety of technologies, including Bluetooth Low Energy (BLE), WiFi and Sigfox, incorporated into bands, bracelets, and other consumer wireless devices.
Key Market Trends
House Hold Use to have a Significant Control on the Smart Plug Market
- The most fundamental application of the smart plug is energy monitoring and Control in household use, for example in Smart HVAC Systems. Apart from that, smart plugs give real-time insights with more exceptional accuracy at equipment level whereas most of the smart meters employ disaggregation algorithms to examine the smart meter reading for measuring equipment level consumption. While smart plugs may have added features to control energy consumption on a regular basis, the insights given by smart meters are principally passive and need a greater cycle of observation and analysis.
- Electricity theft incites huge losses for utilities globally. With the growing installation of smart meters, these conflicts are growing more and more discrete and challenging to identify. With the implementation of smart plugs, the specific energy reading from any machine can easily be matched with the smart meter data to conclude whether electricity theft is taking place or not. Thus, smart plugs can give important insights and an answer to the problem of electricity theft.
- A particular feature of smart plugs such as standby power-saving and occupancy detection will assist to save energy without yearly intervention by the user. The interpretation of the energy savings tendered over a month or a year can then be included in the electricity bill to intensify energy awareness in the public domain. Also, the detection of defective devices using excessive energy proves to be an advantage to both the user as well as utility.
North America Leads in the Smart Plug Market
- North America has been outpacing all other regions in terms of growth rate in the global market for smart plugs. Factors delivering about such progress in the sales has been the large acceptance of technologically advanced products amongst customers and the average disposable income of the population.
- Smart homes are on the surge in North America, with nearly 30 million U.S. households forecasted to add smart home technology in future. The products customers are looking to attach to their homes include video doorbells, connected cameras, connected light bulbs, smart locks and smart speakers of late, which could lead to the growth of the smart plug market.
- Security-focused smart home devices are in demand, as family safety was voted as an important motivator for adopting smart home technology in a fresh survey. Though, the most prominent driver for the market in the region is consumers using smart home technology like smart lighting solutions, energy management solutions to ease their lives with greater convenience.
- According to the security research company, Security.org's Smart Home Technology Usage, Satisfaction, and Purchase Intent: 2020 report, within the next 12 months, over 80 million US households intend to purchase a new type of smart home device.
The Smart Plug Market is moderately competitive and consists of several major players. In terms of market share, few of these major players currently dominate the market. A large number of organizations are massively investing in research and developmental projects to develop innovative and high-quality products. Notable names operating in the industry that have been profiled in the report are Belkin International, Inc, BroadLink Technology Co., Ltd., Panasonic Corporation, etc.
- June 2019 - Edimax Technology, announced a national distribution partnership across France with APM France, a French-based specialist in micro-computing, audio-video, multimedia products, and mobile phone accessories. Its offers are visible in many major national chain stores under its own brands and private labels.
- In September 2020, Amazon launched its Smart Plug in India in its smart-device lineup. The Smart Plug has been designed for the Indian market. It utilizes a 3-pin socket design, supports a 6A power rating, and a state retention feature that ensures that appliances go back to their last state (on/off) in case of a power outage and resumption. The Amazon Smart Plug is priced at INR 1,999 in India and can now be purchased on Amazon India and at select Croma and Reliance Digital outlets.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support