Market Trends of Smart Climate Control Industry
Growing Household Spending
- Home appliances such as Air purifiers are gaining traction due to rapid urbanization and industrialization in developing countries and worldwide, which is now resulting in deteriorated air quality. The increasing prevalence of respiratory issues, soaring disposable income & growth in spending on household products, and growing population are all factors boosting the market's growth.
- With the growing consumer spending ability across developed and developing nations, a prominent share of the spending is directed at consumer goods and home appliances. According to the National Association of Home Builders, during the first two years after closing on the house, a typical buyer of a newly built single-family detached home tends to spend an average of USD 4,500 more than a similar non-moving homeowner. Likewise, a buyer of an existing single-family detached home tends to spend over USD 4,000 more than a similar non-moving homeowner, including close to USD 3,700 during the first year.
- As household spending power increases, consumers are more likely to be aware of and invest in technologies that improve their quality of life. Smart climate control systems offer convenience, energy efficiency, and comfort, making them an attractive option for consumers with higher disposable incomes.
- Increasing household spending enables consumers to prioritize comfort, convenience, energy efficiency, and environmental sustainability, driving the demand for air purifiers, thermostats, and other safety equipment. For instance, consumer spending on household appliances in the United Kingdom increased from GBP 2,831 million in 2018 Q1 to GBP 3,390 million in 2023 Q1.
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Asia-Pacific to Witness the Highest Growth
- Due to the high AQI levels across major cities such as Delhi and Mumbai, the demand for air purifiers is rising in India. Companies such as Acer, Zeco Aircon, and Philips have witnessed a sudden increase in the sales of air purifiers. According to spokespersons of different companies selling the product, indoor air purifier sales have increased by 30-40% across India because of deteriorating air pollution.
- Japan is also one of the significant investors and adopters of the climate control market. The country's growing concern for air pollution and climate change encourages consumers to adopt energy-efficient equipment like a smart thermostat. The Japanese government has also collaborated with the Climate and Clean Air Coalition to tackle air pollution and the climate change crisis.
- Furthermore, according to World Bank, South Asia has become home to 9 of the world's 10 cities with the worst air pollution, which causes an estimated 2 million premature deaths across the region each year and incurs significant economic costs and the countries required to coordinate policies and investments.
- Moreover, the vendors operating in the market are developing new advanced products for smart climate control. For instance, in January 2023, Chinese tech giant Huawei revealed its Zhixuan 720 smart air purifier 3s in China, which has eight purification and formaldehyde removal capability stages. The air purifier has a preliminary protective filter and H13 HEPA material. It is capable of removing potential pollutants from your room environment.
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