Smart Appliances - Saudi Arabia

Saudi Arabia

Revenue in the Smart Appliances market is projected to reach US$253.3m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 10.98%, resulting in a projected market volume of US$384.3m by 2028.
In the Smart Appliances market, the number of active households is expected to amount to 1.8m users by 2028.
Household penetration will be 14.0% in 2024 and is expected to hit 28.6% by 2028.
The average revenue per installed Smart Home currently is expected to amount to US$299.30.

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Analyst Opinion

The Smart Appliances market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly adopting smart appliances due to their convenience and efficiency. Smart appliances offer features such as remote control, energy monitoring, and integration with other smart devices, which appeal to tech-savvy consumers. Additionally, the growing awareness of environmental sustainability and energy efficiency is driving the demand for smart appliances that can help reduce energy consumption.

Trends in the market: One of the key trends in the smart appliances market in Saudi Arabia is the increasing popularity of smart home automation systems. These systems allow users to control and monitor their appliances and devices through a centralized hub or smartphone app. The convenience and ease of use offered by smart home automation systems are driving their adoption in households across the country. Another trend in the market is the integration of artificial intelligence (AI) and machine learning technologies in smart appliances. These technologies enable appliances to learn user preferences and adapt their settings accordingly, providing a personalized and optimized user experience. For example, smart refrigerators can track food inventory, suggest recipes based on available ingredients, and even order groceries automatically.

Local special circumstances: Saudi Arabia has a high smartphone penetration rate, with a large percentage of the population having access to smartphones. This widespread smartphone usage provides a strong foundation for the adoption of smart appliances, as they can be easily controlled and monitored through smartphone apps. Additionally, the government's initiatives to promote smart cities and sustainable living further support the growth of the smart appliances market in the country.

Underlying macroeconomic factors: The overall economic growth and increasing disposable income in Saudi Arabia are contributing to the growth of the smart appliances market. As consumers have more purchasing power, they are more willing to invest in technologically advanced and innovative products. Additionally, the government's focus on diversifying the economy and reducing dependence on oil revenue is driving investments in sectors such as technology and innovation, creating a favorable environment for the smart appliances market to thrive. In conclusion, the Smart Appliances market in Saudi Arabia is experiencing significant growth and development due to customer preferences for convenience and energy efficiency, trends such as smart home automation and AI integration, local special circumstances including high smartphone penetration and government initiatives, and underlying macroeconomic factors such as economic growth and increasing disposable income.

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.