Smart Plug Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Smart Plug Market Analysis

The smart plug market is expected to register at a CAGR of 42.2% over the forecast period. The use of and credence on devices that can be managed remotely through a wireless connection is growing globally, a fundamental factor 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 tremendous 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 more economical than built-in smart appliances. This is also forcing 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, and 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.
• The concept of smart cities marked a great prospect with the Internet of Things in the energy, waste, and infrastructure sectors. Smart home, a significant trend in the smart city, offers several benefits. Several smart city projects and initiatives are ongoing, and by 2025, around 30 global smart cities are expected, with 50% of them likely to be in North America and Europe.​
• In the residential sector, the smart-home ecosystem continues its accelerated expansion, but market growth rates are directly connected to the speed of 5G implementation. Recent IoT investments by Google, Apple, Amazon, and Alibaba transformed the landscape noticeably, giving opportunities for all sorts of companies, but have also forced market strengthening. Acknowledging contemporary moderate user penetration, long product replacement cycles, and rising device connectivity, the adoption of smart plugs will improve in the future.
• The key players in the market are focusing on improving their product lines by introducing new products into the market. For instance, in November 2021, Kasa introduced TP-Link Kasa EP10, a capable smart plug that can be controlled via phone or voice.
• 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.

Smart Plug Industry Segments

The Smart Plug is a multi-purpose, compact, and easy-to-use smart home device that allows to monitor and control the home’s electronic appliances from anywhere. With the Smart Plug, appliances can be turned on or off, control the energy usage of connected devices, create on or off schedules and set up alarms. The plug can work with home smart devices enabling to create of a smart home without complicated setup, installation costs, or monthly subscription charges.

The Smart Plug Market can be segmented by Technology ( Bluetooth, Wi-Fi), Application (Industrial Use, Commercial Use, Household Use), and Geography.

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Smart Plug Market Trends

This section covers the major market trends shaping the Smart Plug Market according to our research experts:

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 the equipment level, whereas most 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.
• The usage of smartphones by households is also driving the Smart plug market. For instance, According to the Consumer Technology Sales and Forecast study, smartphone shipments are expected to reach 154.1 million units (USD 74.7 billion in shipment revenues) in 2022, representing a 3% increase from 2021. (149.6 million). The increasing availability of 5G is driving the upward trend, as 5G devices will account for 73% of smartphone shipments (USD 61.37 billion in revenue) in the coming year.
• A particular feature of smart plugs, such as standby power-saving and occupancy detection, will assist in saving 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, detecting defective devices using excessive energy proves to be an advantage to both the user and the utility.
• The e-commerce players in the market are offering smart plugs through their sites, which helps increase the demand for the smart plug market. For instance, Amazon released Smart Plug, 2022 Newest HEMERE Smart Plugs That Work with Alexa & Google Assistant Removable Wall Outlet Shelf Only WiFi 2.4G. The smart socket has broad compatibility and can be used in the home, workplace, bedroom, kitchen, living room, bathroom, or any other space with limited outlets.

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