Growth in Smart Connected Home Appliance Market to Soar
July 15, 2015 | IHSEstimated reading time: 2 minutes
Strong growth is expected for the smart connected home appliance market in the next five years, according to IHS Inc., the leading global source of critical information and insight. In fact many appliance makers are already shifting focus from low-profit, low-growth traditional (non-smart) products, toward the emerging high-margin, revenue-oriented smart connected appliance market.
Based on the latest information from the IHS Home Appliances Intelligence Service, the global smart connected white-goods market is forecast to grow at a five-year compound annual growth rate (CAGR) of 134 percent, from fewer than one million units shipped in 2014 to more than 223 million units by 2020. The appliance types covered in this research include washing machines, clothes dryers, dishwashers, refrigerators, room air-conditioners and large cooking appliances. If other types of connected home appliances are included – like coffee machines, robotic vacuums, rice cookers, microwave ovens, air-purifiers, and electric toothbrushes – the total addressable smart connected home-appliance market is forecast to reach 700 million units worldwide by 2020.
There are three critical factors that will affect smart appliance adoption: energy management initiatives, such as dynamic pricing, government initiatives and structure of utilities; standards for interoperability; and other marketplace dynamics covering product pricing, retail environment, competitive landscape, the approaches adopted by suppliers and overall interest in smart home technology.
“IHS uses a conservative approach in our forecasting models and there is certainly opportunity for the market to grow even more,” said Dinesh Kithany, senior analyst of home appliances for IHS Technology. “However growth rates depend on how rapidly appliance makers educate and engage with end consumers and provide them with an appropriate price-to-value benefit.”
Samsung, LG Electronics and other consumer electronics giants vying for first-mover advantage have shifted their focus from mobile devices, television and other saturated businesses, to smart home technology devices. “Electronics giants could also benefit from the convergence of mobile devices and TVs with their home appliance business lines, as all of these devices can integrate well with smart technologies,” Kithany said.
In the next two to three years, the smart home technology market is expected to consolidate, and by 2018 there will be just a couple of connectivity platforms, operating systems and a small number of technology-oriented appliance companies dominating the market. The recent announcement that ZigBee is partnering with Thread is one such example. “Consolidation will drive consumers toward earlier adoption of smart home technology, with growth similar to what the mobile phone industry experienced just a few years ago,” Kithany said.
About IHS
IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
Suggested Items
Keynote Preview: Reshaping our Engagement With the World
03/28/2024 | Shawn DuBravac, IPCThe widespread integration of AI across various sectors is broadening its impact, from revolutionizing healthcare with Smart solutions to transforming homes into intuitive spaces, highlighting its crucial role in boosting efficiency and addressing complex challenges. In healthcare, we're witnessing a trend toward personalized care with AI-driven devices like intelligent pillows to mitigate snoring, sophisticated sleep monitors, and innovative patient monitoring systems.
Indium Corporation to Present, Exhibit at EPP InnovationsFORUM
03/28/2024 | Indium CorporationIndium Corporation is set to present and exhibit at EPP InnovationsFORUM, one of Europe’s premier single-day electronics manufacturing forums, on April 17 in Leinfelden-Echterdingen, Germany. Topic areas for 2024 will include AI, automation, sustainability, and quality.
Accenture Invests in Sanctuary AI to Bring AI-Powered, Humanoid Robotics to Work Alongside Humans
03/27/2024 | BUSINESS WIREAccenture has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI and can perform a wide variety of work tasks quickly, safely and effectively.
AT&S Well Prepared to Benefit from AI Boom
03/26/2024 | AT&SThe rapid progress in the development of artificial intelligence promises to revolutionize all areas of daily life in the coming years. In order to operate such AI systems, an enormous amount of computing power is required, which is provided by a vast network of data centres.
The IMAPS Show: A Conversation with John Andresakis
03/26/2024 | Marcy LaRont, PCB007 MagazineOn the last day of the IMAPS Device Packaging Conference, Marcy LaRont sat down with industry veteran John Andresakis of Quantic Ohmega, who attended the conference this week. Not his first time at this event, he talked about the conference, advanced technology, and trying to get the word out about the advanced packaging substrates solution Quantic is offering.