Smart Appliances - South America

South America

Revenue in the Smart Appliances market is projected to reach €1.2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.87%, resulting in a projected market volume of €2.0bn by 2029.
In the Smart Appliances market, the number of active households is expected to amount to 29.8m users by 2029.
Household penetration will be 8.6% in 2024 and is expected to hit 31.3% by 2029.
The average revenue per installed Smart Home currently is expected to amount to €146.90.

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Analyst Opinion

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

Customer preferences: Customers in South America are increasingly seeking smart appliances that offer convenience, energy efficiency, and connectivity. They are looking for appliances that can be controlled remotely through smartphones or voice assistants, allowing them to easily manage their household tasks. Additionally, there is a growing demand for appliances that are eco-friendly and help reduce energy consumption, as consumers become more conscious of their environmental impact.

Trends in the market: One of the key trends in the Smart Appliances market in South America is the increasing adoption of smart home technology. As more households in the region embrace the concept of a connected home, the demand for smart appliances is also on the rise. This trend is driven by factors such as the growing smartphone penetration, the availability of high-speed internet, and the increasing awareness of the benefits of smart home technology. Another trend in the market is the integration of artificial intelligence (AI) and machine learning (ML) technologies into smart appliances. These technologies enable appliances to learn and adapt to the users' preferences and habits, making them more personalized and intuitive. For example, smart refrigerators can learn the users' eating habits and suggest recipes or create shopping lists based on the items stored inside. This trend is driven by the advancements in AI and ML technologies, as well as the increasing demand for personalized experiences.

Local special circumstances: South America has a diverse market with varying economic conditions and consumer preferences. While some countries in the region have a higher purchasing power and are more open to adopting new technologies, others may have lower income levels and prioritize affordability over advanced features. Additionally, the infrastructure and connectivity in different countries may vary, which can impact the adoption of smart appliances. Therefore, companies operating in the South American market need to consider these local special circumstances and tailor their products and marketing strategies accordingly.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the Smart Appliances market in South America. The region is experiencing economic growth, which has led to an increase in disposable income and consumer spending. This, in turn, has fueled the demand for consumer electronics, including smart appliances. Additionally, government initiatives and regulations promoting energy efficiency and sustainability are driving the adoption of eco-friendly appliances in the region. Finally, the increasing urbanization and changing lifestyles in South America are also influencing the market, as people living in cities are more likely to embrace smart home technologies.

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.