South America Smart Home Market Size, Share & Industry Analysis, By Device Type (Safety and Security Devices, Energy and Water Control, Climate Control, Lighting Control, Consumer Electronics), and By Housing Type (Multifamily Dwelling, Single Family Dwelling), Regional Forecast, 2023-2030

The South America smart home market is projected to grow at a CAGR of 20.2% during the forecast period. The global smart home market is projected to grow from USD 80.21 billion in 2022 to USD 338.28 billion by 2030.

South America is expected to showcase healthy growth during the forecast period due to factors such as increasing urbanization, rising disposable income, and growing consumer interest in home automation. This growth is also fueled by increasing adoption of smart appliances, such as smart refrigerators, washing machines, and air conditioners, which can be controlled and monitored remotely using a smartphone or tablet. Furthermore, the integration of artificial intelligence and machine learning technologies in smart appliances for energy efficiency and data analysis is expected to boost the demand for these products in the region.

The market research report covers the following countries – Brazil, Argentina, and the Rest of South America.

LATEST TRENDS

Surging Integration of AI for Data Analysis to Accelerate Market Growth

Increasing use of Artificial Intelligence (AI) and Machine Learning (ML) in smart home devices and rising demand for personalized automation experiences at home are fueling the market growth. Smart appliances that use AI and ML are able to grasp users' behavioral patterns, preferences, and interoperate between networked devices, enabling them to automate tasks and make personalized suggestions.

For instance, in June 2022, Infineon, a German semiconductor manufacturer, launched their smart alarm system, which enhanced energy efficiency by implementing AI and machine learning to learn user analytics and apply to conserve electricity. The company also included restrictions to noise, resulting in reduction of false alarms.

These factors will increase the demand for smart home appliances over the coming years.

DRIVING FACTORS

Rapid Urbanization and Increased Disposable Income to Bolster Market Dynamics

According to a report by McKinsey, in Brazil, 100% of households have fridges and 90% have washing machines, reflecting high consumer demand (and credit) during the boom period. This growth in the middle class segment represents a substantial increase in disposable income, which is likely to fuel the demand for smart appliances. Additionally, according to World Data Population Sheet 2020 of IISD, urban areas are home to highest percentage of the population in South America, with 84% residing in cities. Rapid urbanization is also driving the demand for smart appliances that make life hassle-free and more convenient in urban environments. Consumers are increasingly looking for appliances that aid in saving time, energy, and money while also providing greater control and convenience.

This scenario will expand the South America smart home market size over the coming years.

RESTRAINING FACTORS

Lack of Technological Awareness to Impede Market Growth

Many consumers in South America are not aware of the potential benefits of smart appliances as there is a lack of education and training on effective utilization. The range of smart appliances available in South America is still relatively limited as compared to other regions, which can limit consumer choice and slow the adoption rate.

Such factors might hamper the market growth by reducing the usage and deployment of smart home technologies and appliances.

KEY INDUSTRY PLAYERS

Leading Players Dominate the Market through Strategic Expansion

The South America market consists of leading players such as Electrolux AB, LG Electronics Inc., Samsung Group, and Robert Bosch GmbH. These major firms are broadening their operations by adopting business strategies, such as collaborations, mergers, acquisitions, product launches, and partnerships.

List of Key Companies Profiled:

• Electolux AB (Sweden)


• EZVIZ Inc. (China)


• Amazon Inc. (U.S.)


• Smart Homy (Chile)


• LG Electronics Inc. (South Korea)


• Johnson Controls (U.S.)


• Robert Bosch GmbH (Germany)


• Schneider Electric SE (France)


• Honeywell International Inc. (U.S.)


• Koninklijke Philips N.V. (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: During the FIFA World Cup, TCL Electronics partnered with Team Brazil to launch a video campaign to endorse their smart appliances such as air conditioners, washing machines, and refrigerators. This enhanced their business operations in Brazil, Spain, England, and the rest of Europe.


• December 2022: NRG Energy Inc. acquired Vivint Smart Home Inc., which provides smart home platforms and security systems, for USD 2.8 billion. The acquisition accelerated the business growth strategies and created additional market opportunities fueled by Vivint’s technical expertise and insights.


• February 2022: Ajax Systems received FCC and IC certifications, enabling the company to enhance its business operations in Argentina and other South American countries. The company aimed to distribute its products through Getterson, and deploy a local operations team to enhance its regional influence.


• December 2021: Casai, a hospitality company which provides home automation technology and premium accommodations, raised a funding of USD 40 million in 2020. Additionally, the company acquired Roomin, which offered hospitality services concerning properties in Florianopolis, resulting in geographical expansion and opportunities for strengthening market presence.


• November 2021: Tuya Inc. partnered with Gaya, which manufactures lighting appliances in Brazil, to integrate and launch smart lights and strengthen their regional market position. This partnership enabled Gaya to utilize Tuya’s IoT platform to simplify and rapidly deploy complex smart home appliances.

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The research report provides a comprehensive analysis of the market including qualitative and quantitative insights, as well as a detailed evaluation of the size and growth rate of all potential market segments. It also presents an in-depth analysis of the market dynamics, emerging trends, company market share analysis, and competitive landscape.

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