Smart Plug Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Smart Plug Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Smart Plug Market size is expected to grow from USD 2.69 billion in 2023 to USD 9.12 billion by 2028, at a CAGR of 27.66% during the forecast period (2023-2028).

Key Highlights

• Market expansion was significantly impacted by the rapid adoption of contemporary technologies, including the Internet of Things (IoT), smart voice recognition, and others. The major driving factors of the market are the significant adoption of smart homes globally and the development of the IoT framework.
• A rising Internet of Things (IoT) acceptance rate in developed and developing countries such as the United States, China, India, and so on has helped build the smart home industry. The potential of technologies to enable device communication has contributed to market demand. Even though there were supply chain inconsistencies, the pandemic and its effects highlighted significant improvements in internet connectivity and the need for adoption automation. Many customers made smart home appliance purchases during the lockdown.
• Smart home gadgets enable remote monitoring and control of home elements and are a booming sector with big manufacturers and mass adopters. Over the past two years, many technological developments have raised the demand for smart home appliances as automation enhances user comfort in smart homes. Further, conserving energy to protect the environment and reduce monitoring costs is critical. By monitoring and efficiently managing demand, smart heating and cooling systems enable consumers to conserve energy.
• A significant advancement in demand for smart home appliances, especially refrigerators, dishwashers, smart TVs, voice assistants, and microwave ovens, has pushed the demand for Wi-Fi-based products and technology advancements that enable Internet connectivity to power the market for smart home gadgets.
• Smart plugs are becoming increasingly common, raising security issues. Compromised smart plugs would compromise users' security and privacy. The effects of smart plugs being penetrated and under attackers' control could be severe if they are employed in commercial or industrial buildings for demand response. Smart plug security issues have garnered attention from academic and industrial groups.
• The home automation industry has experienced substantial growth in recent years, a development fostered partly by COVID-19 and lockdown regulations forcing individuals to spend more time at home. As a result, the market has seen an increase in suppliers. The industry has grown and now includes various midrange and entry-level, affordable home automation products such as smart plugs, switches, and so on, whose accessibility has improved due to accessibility to the distribution channel.

Smart Plug Market Trends

Advances in IoT Framework to Drive the Market Growth

• According to Ericsson, almost 60% of cellular Internet of Things (IoT) connections are anticipated to be broadband connections by the end of 2028, with 4G connecting the vast majority. Throughput data rates for this segment will significantly rise as 5G New Radio (NR) is implemented in existing and new spectrums. Further, Massive IoT, NB-IoT, and Cat-M technologies, which offer wide-area use cases involving numerous low-complexity, low-cost devices with extended battery lives and low-to-medium throughput, are still being implemented globally.
• These benefits make it possible to employ Narrowband IoT in many different applications, from smart metering to smart cities and intelligent building infrastructure control to smart farming. In other words, anywhere objects need to be connected. Smart metering is one of the most prominent use cases, and smart plugs play a significant role in these applications. Electricity, water, and gas meter networking is an IoT field for narrowband technology. Consumers do not require much data to enable IoT functionality on a meter. Also, NB-IoT's robust coverage is ideal for transmitting signals from smart meters frequently installed in basements.
• For instance, a smart plug can detect various energy characteristics in commercial chillers and freezers. This enables the user to determine whether the appliance needs servicing remotely. In April 2022, Seco introduced a smart plug integrated with the "SECO Energy Sensor," created by German IoT solutions provider Lemonbeat, a fully owned subsidiary of European utility giant E.ON and a design partner of Nordic Semiconductor. The smart plug could be installed on any 230 V-powered devices, such as refrigeration equipment in grocery stores and supermarkets, and uses a sensor to record energy, voltage, power, and current characteristics.
• Further, in October 2022, China-based MOKO Smart launched a smart plug for energy management applications in the smart home and energy metering industries to benefit customers and energy-solution providers. The "MK117NB Smart Plug" can remotely manage load switches, monitor energy use, and reduce power consumption. It has a measurement accuracy of 0.5% and includes a power and energy meter. With a smartphone app, users can monitor total energy consumption hourly, daily, monthly, and historically. The MK117NB Smart Plug can be used in many countries and supports many plug types. It makes it possible for common electrical devices to be IoT-enabled, giving users a greater understanding of their energy usage and the ability to translate real-time electricity consumption into precise billing information.

North America Leads in the Smart Plug Market

• The North American region has been an early adopter of smart technologies in building automation due to its various applications, including convenience in use and energy management, creating an opportunity for the market vendors in the region. The market's growth is supported by two major developed economies in the region, including the United States and Canada. In addition, the United States is home to many international producers of smart home products, including Belkin International Inc.
• Many industries in the energy and power sector in the region are investing capital in acquiring smart home solution providers with smart plug product offerings, which shows the potential for the market’s growth in North America. For instance, in December 2022, NRG Energy Inc.'s US production unit grew from a major power business to retail consumers by planning and investing USD 2.8 billion in Vivint Smart Home Inc., which provides a broad range of smart electronic products, including smart plugs.
• Market vendors in the region have been collaborating with IoT platform providers to accelerate the speed of their smart plug product launch, fueling the market’s growth because, with inbuilt advanced features and compatibilities, these updated smart plugs can be utilized in various applications securely. For instance, in Canada, Ayla Networks, a company that provides Internet of Things (IoT) platforms that accelerate digital transformation for consumer brands, announced that its IoT firmware would power the line of smart home products from Canadian Tire called NOMA iQ comprising smart lighting, smart plugs, and smart air purifiers that users can connect to via an all-in-one app.
• Companies in the market are partnering to expand their smart home product offerings, including smart plugs. Established traditional electronic companies are using the latest wi-fi-based technology through these partnerships and introducing new smart home product lines, fueling the market’s growth. Additionally, the companies are developing various distribution channels for product sales, such as online and offline, to increase their market presence. For instance, in October 2022, Roku added a new line of smart home devices in collaboration with Wyze, a company in smart home products. The product line includes video doorbells, security cameras, smart lighting, and smart plugs and would be available exclusively through Walmart in the United States.

Smart Plug Industry Overview

The Smart Plug Market is competitive and consists of several major players. Few of these major players currently dominate the market in terms of market share. A large number of organizations are massively investing in research and developmental projects to develop innovative and high-quality products. Notable names in the industry profiled in the report are Belkin International, Inc, BroadLink Technology Co., Ltd., Panasonic Corporation, etc.

In February 2023, TP-Link Technologies Co. Ltd launched its EP25P4 Kassasmart Wi-Fi plug-in Amazon, which can be integrated with Siri and Apple HomeKit. In addition, the company prioritizes developing home and business networking solutions and services for customers, providers, and partners in WLAN markets through its technological innovation.

In May 2022, BroadLink, the provider of smart home solutions in China, introduced FastConBLE. BroadLinkhas integrated FastConBLE technology into several new products, including the Starting Kit, which was made available. BroadLink is committed to creating BLE smart homes, unlike the previous launch, which concentrated on single, smart products. BroadLinkwill releases several new products, including lights, sensors, shadings, and cameras, all supported by patented FastConBLE technology. Customers can select compatible and simple-to-install products to design their own smart homes.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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