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Market Overview

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The Smart Plug Market is projected to witness remarkable growth, with its size expected to increase from USD 2.69 billion in 2023 to USD 9.12 billion by 2028, representing a Compound Annual Growth Rate (CAGR) of 27.66% during the forecast period of 2023-2028.

The smart plug is a versatile and compact smart home device that offers easy control and monitoring of electronic appliances from any location. With the Smart Plug, users can conveniently turn appliances on or off, manage energy usage of connected devices, create schedules for activation or deactivation, and even set up alarms.

Market expansion has been significantly influenced by the rapid adoption of cutting-edge technologies such as the Internet of Things (IoT) and smart voice recognition, among others. Key driving factors for market growth include the widespread adoption of smart homes on a global scale and the advancement of IoT infrastructure.

The increasing acceptance of the Internet of Things (IoT) in both developed and developing countries like the United States, China, and India has fueled the growth of the smart home industry. The potential of these technologies to facilitate seamless communication among devices has further propelled market demand. Notably, during the pandemic, despite supply chain challenges, there was a notable surge in smart home appliance purchases as people sought automation and convenience while staying at home.

Smart home devices, offering remote monitoring and control of various home elements, have become highly popular and have seen mass adoption from major manufacturers. Technological advancements have driven the demand for smart home appliances as automation enhances user comfort in smart homes. Additionally, the focus on energy conservation to protect the environment and reduce monitoring costs has made smart heating and cooling systems essential for consumers seeking efficient energy management.

The rising demand for smart home appliances, including refrigerators, dishwashers, smart TVs, voice assistants, and microwave ovens, has boosted the demand for Wi-Fi-based products and technological innovations enabling Internet connectivity, thereby propelling the smart home gadgets market.

However, with the increasing prevalence of smart plugs, security concerns have arisen. Compromised smart plugs can pose risks to users’ security and privacy. If used in commercial or industrial buildings for demand response purposes, the implications of smart plugs being infiltrated and controlled by attackers could be severe. As a result, smart plug security issues have drawn attention from both academic and industrial circles.

The home automation industry has witnessed significant growth, partially influenced by the COVID-19 pandemic and lockdown measures, which led individuals to spend more time at home. Consequently, the market has experienced a surge in suppliers, offering a range of midrange and entry-level affordable home automation products like smart plugs and switches. The increased accessibility to distribution channels has further boosted the availability and adoption of these products in the market.

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Market Segmentation

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The market is segmented based on various factors, including technology, application, and geography.

Segmentation by Technology
Bluetooth
Wi-Fi

Segmentation by Application
Industrial Use
Commercial Use
Household Use

Segmentation by Geography
North America
Europe
Asia Pacific
Rest of the World

In 2022, the Wi-Fi segment dominated the Smart Plug Market, holding the largest share of 76.82%. Valued at USD 1.68 billion in 2022, this segment is projected to reach USD 7.46 billion by 2028, with an expected higher Compound Annual Growth Rate (CAGR) of 28.96% during the forecast period of 2023-2028.

According to Ericsson, nearly 60% of cellular Internet of Things (IoT) connections are anticipated to be broadband connections by the end of 2028, with 4G being the primary connecting technology. Throughput data rates in this segment are expected to significantly increase with the implementation of 5G New Radio (NR) in existing and new spectrums. The global adoption of technologies like Massive IoT, NB-IoT, and Cat-M facilitates various wide-area use cases involving low-complexity, cost-effective devices with extended battery lives and low-to-medium throughput.

Narrowband IoT (NB-IoT) presents numerous benefits, making it suitable for diverse applications, ranging from smart metering to smart cities, intelligent building infrastructure control, and even smart farming. One of the prominent use cases for NB-IoT is in smart meter networking for electricity, water, and gas meters. The robust coverage of NB-IoT enables reliable transmission of signals, even from meters installed in basements.

A noteworthy application of smart plugs is in commercial chillers and freezers, where these devices can detect various energy characteristics, enabling remote diagnostics and servicing. For example, in April 2022, Seco introduced a smart plug integrated with the SECO Energy Sensor, developed by Lemonbeat, a subsidiary of E.ON. This smart plug, installed on 230 V-powered devices like refrigeration equipment, records energy, voltage, power, and current data.

In October 2022, MOKO Smart from China launched the MK117NB Smart Plug designed for energy management applications in the smart home and energy metering industries. The smart plug allows remote management of load switches, energy monitoring, and power consumption reduction. It provides precise measurement accuracy of 0.5% and enables users to monitor energy consumption in real-time through a smartphone app.

Regarding market segmentation, the household segment held the largest share of 66.14% in 2022, valued at USD 1.45 billion, and is expected to reach USD 5.81 billion by 2028. Meanwhile, the industrial segment is projected to register a higher CAGR of 29.42% during the forecast period of 2023-2028.

Geographically, North America held the largest market share of 33.23% in 2022, with a value of USD 0.73 billion. The North American region’s growth in the smart home market is attributed to its early adoption of smart technologies in building automation, driven by various applications such as convenience and energy management. The presence of major developed economies like the United States and Canada further supports the market’s expansion.

Notably, energy and power sector industries in North America are actively investing in smart home solution providers with smart plug products, indicating substantial growth potential. For instance, NRG Energy Inc. made a significant investment in Vivint Smart Home Inc. to expand its retail consumer offerings in smart electronic products, including smart plugs.

Market vendors in the region are collaborating with IoT platform providers to accelerate the launch of advanced and secure smart plug products, which can be used in various applications. For example, Ayla Networks partnered with Canadian Tire to power its NOMA iQ line of smart home products, offering smart lighting, smart plugs, and smart air purifiers, all accessible through an all-in-one app.

Additionally, companies are forming partnerships to expand their smart home product offerings, including smart plugs, by leveraging the latest Wi-Fi-based technology. Distribution channels are being diversified to increase market presence, with both online and offline sales approaches being adopted. For instance, Roku collaborated with Wyze to introduce a new line of smart home devices, including smart plugs, available exclusively through Walmart in the United States.

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Competitive Landscape

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The Smart Plug Market is characterized by fierce competition and is dominated by several major players. Numerous organizations are heavily investing in research and development projects to create innovative and high-quality products. The report profiles notable industry players such as Belkin International, Inc, BroadLink Technology Co., Ltd., Panasonic Corporation, and others.

In February 2023, TP-Link Technologies Co. Ltd launched its EP25P4 Kassasmart Wi-Fi plug-in Amazon, which offers integration with Siri and Apple HomeKit. TP-Link prioritizes the development of home and business networking solutions and services for WLAN markets, catering to the needs of customers, providers, and partners through technological innovation.

In May 2022, BroadLink, a leading provider of smart home solutions in China, introduced FastConBLE technology. This innovative technology was integrated into several new products, including the Starting Kit, which became available to consumers. BroadLink is committed to creating BLE smart homes, moving away from the previous focus on single smart products. They are set to release various new products, such as lights, sensors, shadings, and cameras, all supported by their patented FastConBLE technology. Customers will have the option to select compatible and easy-to-install products, enabling them to design their own smart homes efficiently.

Key companies profiled in this report include Belkin International Inc., Broadlink International, Panasonic Holdings Corporation, D-Link Corporation, Ankuoo Electronics Inc., EDIMAX Technology Co. Ltd, Vesync Co. Ltd (Etekcity Corporation), Xiaomi Inc., Sariana LLC (Satechi), Wipro Limited, Revogi Innovation Co. Ltd, Lenovo Group Limited, Leviton Manufacturing Co. Inc., TP-Link Technologies Co. Ltd, Shenzhen Tenda Technology Co. Ltd.

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Recent Industry Developments

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In January 2023, TP-Link unveiled a range of new products as part of its Tapo series of smart home gadgets. The latest additions encompass a smart hub home connection center, robot vacuums, cameras, a doorbell camera, a smart video door lock, and various other devices. Notably, TP-Link also introduced its first smart plugs, switches, outlet extenders, and bulbs that have received certification from Matter. The company’s participation at CES 2023 signifies its strong commitment to expanding and diversifying its product lineup within the smart home market. TP-Link aims to make smart home technology more accessible and user-friendly, as demonstrated by its integration of the Matter protocol for its Tapo and Kasabrands of smart home products.

In November 2022, Smarteefiinvested capital introduced a new product, the 16A WiFismart plug, as an addition to its line of smart switches. This particular model boasts the distinction of featuring the world’s first built-in clock system, enabling it to function independently of the Internet clock cycle. This unique feature bestows users with various benefits, including a reliable scheduling capability, an assured countdown timer, and more precise daily and real-time energy monitoring.

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Key Questions Answered

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How large is the Smart Plug Market?
The Smart Plug Market is expected to reach USD 2.69 billion in 2023 and is projected to grow at a CAGR of 27.66%, reaching USD 9.12 billion by 2028.

What is the current size of the Smart Plug Market?
In 2023, the Smart Plug Market is anticipated to reach USD 2.69 billion.

Who are the key players in the Smart Plug Market?
The major companies operating in the Smart Plug Market include Belkin International, Inc, Broadlink International, Panasonic Holdings Corporation, D-Link Corporation, and Ankuoo Electronics Inc.

Which region is experiencing the fastest growth in the Smart Plug Market?
North America is estimated to have the highest Compound Annual Growth Rate (CAGR) over the forecast period (2023-2028) in the Smart Plug Market.

Which region holds the largest share in the Smart Plug Market?
As of 2023, North America accounts for the largest market share in the Smart Plug Market.