Smart Wine Cellar Market Global Industry Analysis, Trends and Forecast, 2019-2027

Rise in Wine Consumption to Boost Smart Wine Cellar Market

Wine, like milk, can also get spoiled. If wine is exposed to light or temperature, then the speed of spoilage is accelerated. A wine cellar refers to a room that is used for the storage of wine. Wine is usually stored in barrels or bottles. In rare cases, wine is also stored in plastic containers, amphorae, or carboys. In a working wine cellar, various factors such as humidity and temperature are controlled by climate control system. The global smart wine cellar market is estimated to be driven by the rise in consumption of wine in the years to come.

Developing taste for wine amongst the lovers of alcohol across the globe is likely to act as a growths stimulating factor for the global smart wine cellar market over the period of assessment.

Augmented Demand from the Hospitality Sector to Bolster Demand

The nature of the global smart wine cellars market is regarded as a highly diversified one. Commercial wine cellars are likely to emerge as the dominant application segment in the global smart wine cellars market and are expected to retain its dominance over the years of projection. Rise in the demand for smart wine cellars in the pubs, bars, restaurants, and hotels are likely to propel growth of the commercial wine cellars.

Increased consumption of wine is likely to influence the growth of the global smart wine cellars market. Some of the potential benefits of wine are as mentioned below

• Rich in antioxidants
• Might help in combating inflammation
• Might benefit health of the heart

Maintenance of wine bottles could be an intimidating job for the owners of restaurants, hotels, and bars. However, with the emergence of smart wine cellar, the wine storage has become a hassle-free and simple job. With the rising scarcity of physical space, the emerging trend of use of wine cellars that can store 500 bottles are likely to gain prominence over the period of analysis.

With the growing demand for such cellars, the 500 bottles wine cellars shall dominate the capacity category of global smart wine cellar market.

Pacing growth of IT and data oriented technologies has made communication with machine easy. The wines tastes better when served chilled. This demand for ice cold wines by wine enthusiasts have stimulated the developers to produce smart wine cellars and coolers. This as a result is expected to propel the growth of global smart wine cellar market.

Smart Wine Cellar Market: Technology Changing the Wine Experience

Wine cellars in modern times are no longer dimly lit, cavernous rooms with endless bottles, designed for maximum storage. In recent decades, modern wine cellars incorporate materials that are strictly not considered traditional, based on the requirement of customers.

The pervasive influence of technology has crept into the wine cellar industry, and the rise of automation technologies is expected to provide an impetus to the developments in the smart wine cellar market. In 2018, sales of ~45 thousand units of smart wine cellars were recorded across the world, and the market reached a valuation of ~US$ 1.2 billion. With rapid advancements in IT infrastructures and wireless communication technologies, the global market for smart wine cellars is expected to reach new heights in the coming years.

As per recent trends, smart wine cellars that connect to Wi-Fi, and be monitored by technology and even voice recognition, are becoming popular among consumers, with stakeholders looking at exploring options in both, the residential and commercial sectors. Technology has enhanced the wine industry, with apps that help track and organize wine in the cellar, and even maintain precise temperature and humidity to help preserve the wine longer.

For instance, in 2018, LG, a leading global appliance manufacturer, launched its Signature Wine Cellar, with space for 65 bottles of wine, also offering voice recognition. This is promoted as a premium home appliance – a wine cellar with three different temperature zones for different wines. In addition to this, La Sommeliere, a major player in the European wine cellar market, launched a connected smart wine cellar in 2018, which offers temperature and humidity control. La Sommeliere’s connected smart wine cellars use VinoTag, an app that allows users to organize the contents in the cellar. It is marketed as a connected cellar that encourages the creation of a collection, with the convenience of easy storage and management.

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Smart Wine Cellars Gaining Traction in Commercial Sector

In the commercial sector, there is a growing trend of restaurants and bars looking to improve operations by incorporating smart wine cellars. Stakeholders in the smart wine cellar market are designing products that focus on the ease of identification of stored bottles, with class and smart lights incorporated to solve the dual purpose of saving time and acting as a display case. Manufacturers are also focusing on practical conveniences of the restaurant industry, with wine cellars either two- or three-temperature zoned, allowing them to monitor the humidity and temperature levels inside the cellar. Security of the wine in the cellar is also a key feature in commercial smart wine cellars being provided by manufacturers.

The rapid adoption of connected smart wine cellars capable of doing much more than just store wine and monitor temperature, especially in restaurants and bars, is gaining popularity. This, along with the increasing number of restaurants, is one of the major driving factors for the adoption of smart wine cellars.

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Recovering Wine Consumption Expected to Contribute to Adoption of Smart Wine Cellars

According to the International Organisation of Vine and Wine (OIV)’s press release about wine consumption, there has been a continuing recovery trend since 2014 regarding the consumption of wine in traditional markets in North America and Europe, with emerging markets in Asia. This recovery is expected to contribute to the adoption of smart wine cellars in these regions. This presents an opportunity for manufacturers to capitalize on the trend of changing lifestyles and increasing consumption of wine, and strengthen their presence in these regional markets.

However, despite being touted as the future of wine storage technology, with several smart features, the smart wine cellar market’s growth may be restrained by the high cost factor. This applies particularly to developing countries, markets where purchasing power is rather low in comparison to developed countries.

The ban on alcohol in several countries and rules & regulations prohibiting the consumption and sale of alcohol can also act as a deterrent to the growth of the smart wine cellar market in developing regions.

Cellars with Capacity of Less than 500 Bottles to Lead Market

Cellars with the capacity of less than 500 bottles held the largest share in the market as of 2018, following the over 1,500 capacity cellar category. This trend is unlikely to change during the forecast period, with smart wine cellars with less than 500 bottles capacity continuing to dominate the market. This is likely to be driven by increasing investments by stakeholders into research & development and rising awareness among consumers related to wine consumption, in the global smart wine market.

Key players in the market such as LG and La Sommeliere are focusing on maintaining their position in the global market by showcasing new products in trade shows to help build visibility.

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Analysis of the Smart Wine Cellar Landscape

The global smart wine cellar market is comprised of established electronics and appliance companies diversifying into the wine cellar market with innovations and products, and hold a majority of the market share. The landscape also has established and emerging players catering to commercial and consumer use. The degree of competition is high, with product innovation driving the flurry of activity in the market.

Major players in the appliance industry are diversifying their portfolios and establishing themselves in the smart wine cellar market, driving product innovation. Some of these companies include LG Electronics, a multinational electronics company headquartered in South Korea, and the Electrolux Group, a home appliance company of Swedish origin.

From a geographical standpoint, as of 2018, North America held the largest share in the global market, followed by closely Europe and APAC. But the trend is likely to change, with Europe becoming a lucrative market during the forecast period.