The smart fridge market is projected to grow at a CAGR of 9.94% over the forecast period to grow to US$3.237 billion in 2027 from US$1.667 billion in 2020.
A smart fridge or smart refrigerator is programmed for sensing the products which are stored inside and also helps to keep a track of the stock via RFID scanning. The refrigerator also helps the user in knowing about the food items which require replenishment. The monitoring of this smart appliance can be easily managed through any remote location and can be controlled in case of any unauthorized access. The booming consumer electronics industry, growing preference for customer personalization, and customization are some of the drivers driving the growth of the global smart fridge market. In addition, increasing purchasing power and rising disposable income will further contribute to the adoption of smart fridges due to improved lifestyle conditions. Region-wise, North America and Europe are expected to hold a significant market share due to the adoption of innovative technologies while the Asia Pacific is considered the fastest growing.
Drivers
The growing consumer electronics industry and rising preference towards customer personalization and customization are some of the factors driving the growth of the global smart fridge market. An increase in purchasing power and rising disposable income is further likely to contribute towards the adoption of smart fridges due to the improving lifestyle conditions. Further, another major factor behind the rising demand for smart fridges is the tech-savvy millennial population. Smart fridges have the capability of connecting to the internet, and very recently there have been new models that can be used to order groceries by simply using voice commands or the touch of a button. For instance, Samsung introduced a model that used “Groceries” through Mastercard mobile app to aid customers in easily ordering and paying for the items they need.
A lack of monitoring and timely use of refrigerated foods leads to wastage which is a very common problem for the end-users. The UNDP (United Nations Development Program) stated that in India, around 40% of food is wasted and about 20% of the purchased food is discarded. Therefore, the need for effective food management in the residential, as well as commercial sectors, is expected to result in the rising adoption of smart refrigerators. The ability of these products to monitor and control the quality as well as the shelf life of the food and generate user alerts is projected to drive the market.
Manufacturers are continuously developing and innovating these products to aid to ease the lifestyles of tech-savvy consumers. For instance, Samsung introduced a refrigerator integrated with cameras, a 21-inch touchscreen display, and speakers, to provide a smart user experience. Apart from the normal cooling and retaining the freshness of the food items, this product also allows users the provision of listing out shopping items, read out schedules, and also stream video clips. Further, the cameras equipped in this fridge display the expiry dates of food for effective usage.
The key long-term benefit of these products is that they can substantially increase energy efficiency. Earlier refrigerators used up to 1,278 KW hours annually, whereas smart refrigerators use less than 50% of this power while still providing an average capacity of more than 21.9%. This benefit is thus expected to drive the demand, especially among the residential sector, thus augmenting growth in the market.
Asia-Pacific is Expected to Witness Substantial Growth in the projected period
By Geography, the Smart Fridge market can be segmented into North America, South America, Europe, Asia-Pacific, and the Middle East and Africa. In the North American region, the market is well developed as compared to the other markets of other regions due to the fast adoption of technology. The smart Fridge market in the Asia-Pacific region is expected to witness maximum potential growth in the forecast period. Growing personal disposable coupled with the rising purchasing power of people in the region is likely to expand the growth of the market in this region over the forecast period. The smart fridge market in Europe, South America and the Middle East, and Africa are also expected to undergo positive growth during the forecast period.
COVID-19 Impact on the Smart Fridge Market
The COVID-19 pandemic had a negative impact on the smart fridge market. The subsequent social distancing measures and mandated lockdowns implemented by the governments across various nations resulted in the slowing down of various industries, which caused a dip in the demand of the market. Further, the decreased spending power of the general population due to the economic stir caused a dip in the sales of these smart fridges, thus, negatively affecting the market.
Read More
