Smarter Kitchens — Smarter Sales

In an industry known for reliability and practicality, the rise of smart appliances might seem like a curious twist. After all, who really needs a fridge that talks back or an oven that thinks for itself? At first glance, the idea of an AI-powered major domestic appliance (MDA) could sound more like a tech enthusiast’s fantasy than a mainstream reality. But the market tells a different story.

Smart MDAs have quietly become one of the strongest growth drivers in the home appliances sector. In the first six months of 2025, value sales rose by a robust 19 %, building on a solid 12 % increase in 2024. Today, smart products account for almost one-third of the global MDA market – a remarkable shift.

So, what’s fuelling this boom? And why does it appear to run counter to what consumers say they want?

The Smart Paradox: Low Demand, High Sales

When consumers are asked what matters most when buying appliances, smart features rarely make the shortlist. Only 6 % of fridge buyers cite smart or AIoT (Artificial Intelligence of Things) capabilities as a top purchase driver. Far more important are practical attributes such as energy efficiency (53 %), noise levels and category-specific technologies like frost-free refrigeration.

Yet smart appliances are still flying off the shelves. This apparent contradiction points to a deeper dynamic – one where consumer perceptions and industry strategy are not always in sync.

The Smart Features: The Silent Differentiator:

While smart capabilities may not be the main reason for purchase, they can still be the deciding factor when all else is equal. If two appliances offer similar specifications, price and brand reputation, the model with smart features often wins out.

Smart technology is also increasingly being used to enhance other, highly valued attributes. Energy efficiency is a prime example: through AI-driven personalisation, appliances can optimise their performance based on usage patterns, saving energy without compromising functionality. These “AI energy modes” are quietly reshaping how consumers experience smart appliances – often without them even realising it.

The Ecosystem Effect: Why Industry Push Matters

The reason manufacturers and retailers invest heavily in smart MDAs lies in a long-term vision: connected ecosystems. Once a critical mass of appliances in a household is online, the benefits multiply – personalised experiences, improved efficiency, usage transparency and seamless interconnectivity.

Building such ecosystems, however, takes time. With appliance replacement cycles often stretching beyond ten years, the shift will not happen overnight. That’s why brands are pushing smart products now – to lay the groundwork for future adoption and unlock the full potential of the AIoT.

Asia Leads, Others Follow

Not all regions are moving at the same pace. Markets in Developed Asia lead, with 51 % of MDA sales being smart. Emerging Asia is close behind at 44 %. Western Europe, by contrast, stands at 28 % – roughly six to eight years behind in adoption – while Latin America trails further at just 13 %.

The top three countries for smart MDA adoption are South Korea, China and Singapore. These markets are setting the pace for global ecosystem development, with Europe and Latin America expected to follow in due course.

Price Matters – But It’s Changing

One of the main barriers to adoption has been price. Smart ovens, for example, sell at 273 % of the average price for the total category (100%). Similar premiums apply to smart hobs and hoods. However, as seen in other categories such as dishwashers – now at a 126 % price index – more affordable pricing can quickly drive adoption within just a few years. As the gap between smart and non-smart prices narrows, uptake for kitchen appliances is set to accelerate.

Cooking Up the Next Big Opportunity

Looking ahead, the kitchen is emerging as the next hot spot for smart appliance growth. In contrast to laundry products, categories such as ovens, hobs, hoods and fridges are still in the early stages of adoption – often below 15 % market share – yet their growth rates are striking.

Smart ovens and cookers, for example, have seen a remarkable 94 % year-on-year increase in value. This points to a clear boom opportunity, especially as more affordable models enter the market and consumers begin to embrace the benefits of a smarter cooking experience. 

The AI Cooking Revolution: From Chore to Joy

Perhaps the most exciting development is the transformation of cooking itself. Imagine a fridge that suggests recipes based on its contents, an AI assistant that guides you through meal preparation in a natural, conversational tone, and an oven that automatically adjusts its settings.

In this scenario, cooking becomes less of a chore and more of a rewarding experience. Most surprisingly, the quality of the meal – and the enjoyment of it – can improve dramatically, often exceeding expectations.

As consumers experience these benefits first-hand, perceptions of kitchen appliances could shift, boosting their willingness to invest in smart technology in the future. 

Conclusion: Smart Is Redefining Kitchen Experiences

While smart features may not yet top consumer wish lists, their role in shaping the future of home appliances is undeniable. From enabling greater energy efficiency to transforming everyday routines, AIoT is quietly redefining what it means to live – and cook – in a smart way.

As ecosystems mature and prices fall, the next appliance boom will be driven not just by innovation, but by intelligence.

Democratizing the art of cooking and making it gratifying with the help of smart assistance and AI personalization.

ABOUT NIQ

NielsenIQ (NIQ) is a leading consumer intelligence company, providing the most complete view of consumer buying behaviour and uncovering new pathways to growth. In 2023, NIQ joined forces with GfK, uniting two industry leaders with unrivalled global reach. Today, we operate in more than 90 countries, covering around 85% of the world’s population and over US$7.2 trillion in consumer spend. With a holistic retail read and the most comprehensive consumer insights – delivered through advanced analytics and state-of-the-art platforms – NIQ offers the Full View™. More info niq.com.