2025
8
China Smart Home Market Report 2025
2025-03-19T16:01:07+00:00
REP0B7A54FE_1E85_4DDA_9271_66732C35C31B
3695
180693
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Report
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This report looks at the following areas: Smart home consumption (prevalence of smart products and smart scenarios, ownership rates and purchase interest in various smart products) Opportunities for smart home…
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  6. China Smart Home Market Report 2025

China Smart Home Market Report 2025

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This report looks at the following areas:

  • Smart home consumption (prevalence of smart products and smart scenarios, ownership rates and purchase interest in various smart products)
  • Opportunities for smart home systems to enhance consumer home living satisfaction
  • Factors influencing the purchase of smart products and the deployment of smart scenarios
  • Key groups to focus on for smart home brands

Brands need to address consumer concerns about privacy protection in the AI era, and focus on enhancing the practicality and long-term value of smart products. They should also dedicate themselves to transforming smart homes from limited tools to a powerful assistant that gives the home sensory and emotional experiences an all-rounded boost, so to align with consumers’ romantic imagination of everyday life and self care.

Toby Xu, Analyst, China Insights

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  1. Executive summary

    • Key issues covered in this Report
    • Report definition and scope
    • What you need to know
    • The market
    • The smart home market is recovering due to policy incentives, but still faces challenges
    • Companies and brands
    • Key players’ performance
    • New product trends
    • The consumer
    • Key points of consumer insight
    • What we think
  2. The market

    • Market overview
    • Market overview of main smart home categories
    • Market factors
    • The real estate industry is in an adjustment cycle, and smart home needs to explore new structural opportunities
    • Graph 1: real estate climate index, 2021-24
    • Graph 2: floor space of commercial buildings sold nationwide, 2018-24
    • Consumer spending remains cautious; improving overall product quality is key to success
    • Graph 3: annual savings rates of Chinese residents, 2016-24
    • Graph 4: consumer price index, 2018-24
    • Brand competition is fierce, with both challenges and opportunities coexisting
    • Graph 5: planning to switch household appliance brands in the next 12 months, 2021-24
    • National subsidies yield immediate results, effectively boosting consumption of home furnishings and appliances
    • Graph 6: categories spent more on compared to last month, home (eg furnishing, home appliances, furniture), 2022-24
    • The policy on building digital homes is expected to accelerate the proliferation of smart home technology
    • Urbanisation leads to demands for housing improvement and rental housing, driving the growth of smart home
    • Graph 7: urbanisation rate, 2018-24
    • The ageing population trend catalyses the demand for smart home age-friendly adaptation
    • Graph 8: population aged over 65 and proportion, 2018-24
    • Smaller family sizes and the rise of the single economy are driving the demand for smart homes towards segmentation and diversification
    • Graph 9: family structure changes*, China, 2002-22
    • Generative AI is expected to accelerate the adoption of smart homes and enhance smart home usage experiences
    • Smart home still faces greater challenges in cross-brand integration and standardisation
  3. Companies and brands

    • Key players’ performance
    • Technology brands deepen smart home ecosystem construction
    • Multi-category major home appliances giant maintains net profit growth
    • Leaders in category specialisation are actively exploring diversification
    • New product trends
    • AI + smart home accelerates evolution
    • Domestic robots are gradually coming into the public view
    • Sensors are integrated into various devices, making smart sensing ubiquitous
    • Smart home focuses on the needs and scenarios of specific consumer segments
  4. Smart home consumption trends

    • Smart home consumption is slowly evolving from products to scenarios
    • Smart home consumption is still primarily focused on products, with smart home scenarios developing slowly
    • The Tier 3 and lower smart home market shows potential
    • The 30-39 age group is the core consumer demographic for smart home products, while the 25-29 age group represents a potential market
    • Graph 10: smart home penetration, by age, 2024
    • Focus on the consumption potential of the elderly population
    • Graph 11: smart home penetration – consumers aged 50-59, 2023-24
    • The ownership rates of smart washing machines and smart lighting have grown
    • Graph 12: smart home product ownership, by category, 2020-24
    • Smart major home appliances need to focus on upgrading core functions to attract potential users
    • Graph 13: smart home product ownership and purchase interest, 2024
    • Graph 14: purchase interest in smart home products* (b), 2023
    • Smart TVs and smart toilets need to pay attention to the demand for replacements
    • Graph 15: willingness to upgrade and replace smart home products* (a), 2024
    • Explore opportunities for smart homes to enhance happiness in home living
    • Happiness of home living comes from sensory elements in the living space as well as emotional experiences of in-home activities
    • Graph 16: activities/scenarios that most affect the sense of happiness at home , 2024
    • Consumers recognise the benefits of smart home scenarios in optimising the home environment and improving the efficiency of everyday tasks
    • Graph 17: benefits of smart home scenarios , 2024
    • Enhance the home environment to create sensory healing
    • Adds a sense of occasion and fun to home activities by creating a unique atmosphere
    • Highlight the advantages of smart home’s efficiency and convenience, helping users free up their leisure time
    • Key factors influencing the purchase of smart products and the deployment of smart scenarios
    • Privacy protection has become a key factor in purchasing decisions, while long-term value and practicality are core demands
    • Graph 18: changes in smart home product purchase factors , 2024
    • Consumers who only have standalone smart products value durability and versatility more
    • Graph 19: changes in smart home product purchase factors – will be more important, 2024
    • Be time-sensitive when addressing consumer concerns over privacy protection
    • Focus on practicality and achieve multi-functional integration
    • The compatibility and frequent iteration of smart home products are the main obstacles to the popularisation of smart scenarios
    • Graph 20: concerns about setting up/deploying smart scenarios at home, 2024
    • Enhancing end-to-end service capabilities is key for brands to promote smart scenarios at present
  5. Key insights into target groups

    • Smart home main consumer group: people aged 30-39
    • Consumers aged 30-39 are the main consumer group for smart home products
    • Graph 21: smart home products owned, repertoire analysis, 2024
    • Graph 22: adoption of smart home, 2024
    • Women aged 30-39 pay more attention to privacy protection, practicality and durability when purchasing smart home products, while men are more sensitive to price
    • Graph 23: changes in smart home product purchase factors – will be more important, 2024
    • Women aged 30-39 pay more attention to the home environment and a variety of home activities, while men place more importance on the study or home working environment
    • Graph 24: activities/scenarios that most affect the sense of happiness at home , 2024
    • Women aged 30-39 value the comfort and sense of belonging that smart homes bring, while men place more importance on everyday task efficiency and showcasing personal taste
    • Graph 25: benefits of smart home scenarios, 2024
    • Smart home products enhance sensory experiences, aligning with the 30-39-year-old women’s romantic vision of everyday life
    • Smart home potential consumers: 25-29-year-old Gen Z
    • A potential consumer group for smart connected scenarios: Gen Z consumers aged 25-29 are keen to purchase smart products
    • Graph 26: adoption of smart home, 2024
    • Graph 27: smart home products owned, repertoire analysis, 2024
    • Younger consumers place more importance on the multifunctionality and long-term utility value of products
    • Graph 28: changes in smart home product purchase factors – will be more important, 2024
    • Younger men are less concerned with environment and ambience, placing more emphasis on a sense of security and restfulness
    • Graph 29: activities/scenarios that most affect the sense of happiness at home, 2024
    • Younger consumers value the sense of security brought by smart homes more
    • Graph 30: benefits of smart home scenarios, 2024
    • Male individuals aged 25-29 face more pressures related to economy, work and interpersonal relationships, while women face challenges in employment and career development
    • Graph 31: causes of emotional issues, 2024
    • Demonstrate understanding and support for younger people and evoke resonance
    • Important audience for premium smart home and whole-house intelligence: high-income groups (monthly household income RMB24,000 or above)
    • High-income households are the core consumer group for smart home systems, and an important target demographic for whole-home intelligence
    • Graph 32: adoption of smart home, 2024
    • Graph 33: smart home products owned, repertoire analysis, 2024
    • High-income households have higher comprehensive demands for smart products
    • Graph 34: changes in smart home product purchase factors – will be more important, 2024
    • High-income households focus on the aesthetics of home space and leisure and entertainment
    • Graph 35: activities/scenarios that most affect the sense of happiness at home, 2024
    • Focus on creating home aesthetics and cultivating a relaxing, healing environment
    • Graph 36: benefits of smart home scenarios , 2024
    • Highlight the spatial aesthetic value of smart scenarios
  6. Appendix – methodology and abbreviations

    • Methodology
    • Abbreviations

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