July 6, 2016 - 11:40 AM EDT
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Rising Awareness of Connected Devices Predicted to Boost the Connected Home Appliance Market in the US Through 2020, Says Technavio

According to the latest research report released by Technavio, the connected home appliance market in the US is expected to reach USD 5.15 billion in revenue by 2020.

This report titled ‘Connected Home Appliance Market in the US 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. To calculate the market size, the report considers the following:

  • Revenue generated from the connected services provided by telecom operators, Internet service providers, managed service providers, and equipment providers for smart appliances.
  • Service revenue realized from three categories: kitchen and laundry equipment, air conditioners, and smart TVs. In the kitchen and laundry equipment category, refrigerators, micro ovens, dishwashers, cooktops and induction stoves, and washing machines have been considered.

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“The concept of connected M2M home appliances is gaining popularity in the US. Manufacturers are focusing on reducing the price of these appliances and making them more energy efficient. Due to the high penetration of smart devices, such as smartphones and tablets, access to home connecting apps has become easy and convenient. These factors are causing an increase in demand and awareness with respect to connected home appliances,” said Rakesh Panda, one of Technavio’s lead industry analysts for M2M and connected devices.

Some of the other driving forces behind the growth of the connected home appliance market in the US are as follows:

  • Rising smartphone penetration
  • High availability of home broadband connectivity
  • Increased energy management initiatives

Rising smartphone penetration

The US is the world's largest 4G market. Currently, it has 80% smartphone adoption rate with respect to its population. Increasing smartphone data usage is driving the connected home appliances market in remote monitoring and controlling of the devices.

The well-designed embedded software in smart home appliances is catering to the changing demands of the consumers by performing automatic tasks upon receiving control signals through the connected network.

Many leading companies such as Samsung, LG, and GE are competing with each other in terms of technological advances in connected devices. For instance, LG has introduced a line of home appliance devices under the name Smart Thinq. LG's Smart Thinq refrigerator prepares a diet program for different profiles and plans automatic order replacements. Also, LG has developed a chat platform for its consumers to communicate, monitor, and share relevant content through the LINE messenger or the LG HomeChat service. This technological improvement in home appliances creates a channel to provide real-time status updates through network connectivity.

High availability of home broadband connectivity

In 2015, the total number of households in the US was almost 123 million out of which nearly 91 million had broadband connectivity. Reliable and efficient network connectivity helps in the proper monitoring and controlling of home appliances.

Smart home systems are gaining traction with the advent of high-speed Internet services from leading ISPs such as AT&T, Comcast, Sprint, and Verizon. Almost 15% of the households with broadband connectivity use smart home systems. Major companies such as Samsung, LG, and Panasonic are capitalizing on smart home technologies to attain a first-mover advantage in the market.

Most of the smart home appliances function efficiently with the help of wireless connectivity. High penetration of Wi-Fi connectivity in residences is fueling the adoption of smart home appliances as numerous devices can be added to the home network easily without the use of external controllers.

Increased energy management initiatives

Energy consumption in various traditional household appliances such as air conditioners, washing machines, and microwave ovens is very high. Therefore, there is a rising demand for energy-efficient devices. Many governments worldwide have taken energy management initiatives to reduce consumption levels because of the increase in the depletion rate of non-renewable resources and the emission of greenhouse gasses.

Households in the US, on an average, spend about USD 2,000 every year on energy. Around 10% of this energy is spent on home appliances such as dryers, refrigerators, dishwashers, and air conditioners. Various states in the US have developed an innovative marketing strategy in the form of a rebate program that is designed to promote and create awareness about smart home appliances.

Under this program, a maximum amount of USD 100 to USD 150 is provided to adopt energy saving devices; this amount varies from one device to another. This initiative, which has a budget of $300 million, promotes energy star-rated devices. This paves the way to attain environmental sustainability.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at [email protected].

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
[email protected]

Source: Business Wire (July 6, 2016 - 11:40 AM EDT)

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