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.
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