Business·Industry

It’s Not Enough to Just Sell a Single Appliance… IFA Shifts Focus to Competition in ‘Space and Services’

[IFA2026] Home Appliance Shows, Once a Battleground for Product Performance, Now a Arena for AI Home Competition China Builds Full Product Lineup Spanning Home Appliances, TVs, and Robots Samsung Unveils AI Living That Connects Mobile and Wearable Devices LGELECTRONICS Expands into Energy and E-commerce with AI Butler

JAEMIN SONG
2026-09-06 15:37:48
[Berlin=Edaily Reporter JAEMIN SONG ] Home appliance exhibitions, which used to focus on comparing the performance of individual refrigerators and washing machines, have transformed into platforms for “selling homes.” At “IFA 2026,” which opened on the 4th (local time) in Berlin, Germany, exhibition spaces that looked like they had been transported directly from living rooms, kitchens, and bedrooms appeared throughout the venue. Rather than individual products, the spotlight was on “AI Homes”—systems that integrate home appliances, mobile devices, and energy, security, and lifestyle services into a single ecosystem.

An AI home modeled after a bedroom is on display in the “Inspiration Habitat” space at the TCL exhibition hall during “IFA 2026” in Berlin, Germany, on the 4th (local time). (Photo: ReporterJAEMIN SONG )

The shift by the home appliance industry to expand the scope of competition from individual products to entire spaces is driven by differences in market growth trends. As consumers postpone replacing high-end appliances due to high inflation and economic uncertainty, traditional appliances such as refrigerators and washing machines have entered a mature market reliant on replacement demand. In contrast, smart homes—which integrate various products and services based on AI and the Internet of Things (IoT)—are growing rapidly.

Market research firm Fortune Business Insights forecasts that the global home appliance market will grow at a compound annual growth rate (CAGR) of 6.7%, expanding from $826.66 billion this year to $1.38646 trillion by 2034. The smart home appliance market is expected to grow from $54.77 billion to $166.83 billion over the same period. With a compound annual growth rate (CAGR) of 14.9%, this growth is more than twice as fast as that of the overall home appliance market.

In response, companies are developing business models that go beyond a one-time sale of appliances to maintain a continuous connection with customers throughout the product’s lifespan. AI analyzes lifestyle patterns to operate appliances and regulate energy usage, as well as detect abnormalities and suggest maintenance. The strategy aims to secure ongoing revenue by linking these services to the purchase of necessary food ingredients and consumables, as well as subscriptions to new appliance features.

On the 4th (local time), an AI home space recreating a bedroom was set up at the LGELECTRONICS exhibition hall at “IFA 2026” in Berlin, Germany. (Photo: ReporterJAEMIN SONG )

The pursuit by Chinese companies is also accelerating the shift toward competition. Chinese firms, which in the past exhibited low-cost products in large quantities, have now built their own ecosystems spanning everything from TVs and home appliances to mobile devices, automobiles, and robots. They have begun to put pressure on Korean companies not only in terms of price and product variety but also through the platforms that connect these products.

In fact, at the IFA exhibition, TCL and Hisense set up AI home displays modeled after living rooms, kitchens, and bedrooms. TCL showcased its “Inspiration Habitat,” which combines displays, home appliances, and interior design, while Hisense unveiled its “AI Companion Suite,” which integrates kitchen, laundry, HVAC, and energy management systems.

Rather than competing with China on the number of individual products or price, SamsungElectronics and LGELECTRONICS emphasized the completeness of connectivity and the actual user experience. SamsungElectronics integrated home appliances, TVs, mobile devices, and wearables into a single lifestyle flow, while LGELECTRONICS presented a home where AI understands the user’s situation to control appliances and even execute necessary services.

Baek Seung-tae, Executive Vice President and Head of LGELECTRONICS’ HS Business Division, said, “It will be difficult for Chinese companies to continue their low-price offensive to increase market share,” adding, “While price and capacity used to be the key competitive factors, the focus of competition is now shifting to how well products incorporate the customer experience.”

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