Sales of smart appliances should reach 700 million units worldwide by 2020, IHS reports
ENGLEWOOD, Colo., July 16, 2015 - Growth in the market for smart home appliances, or smartwares, is expected to accelerate over the next five years, according to IHS, a provider of market insights and analysis. The compound annual growth rate of smartwares over this period is projected at 134 percent.
Total volume for connected appliances—which, in IHS’ analysis, includes coffee machines, robotic vacuums, rice cookers, microwave ovens, air purifiers, electric toothbrushes, washing machines, clothes dryers, dishwashers, refrigerators, room air conditioners and large cooking appliances—should reach 700 million units worldwide by 2020.
“There is certainly opportunity for the market to grow even more. 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,” said Dinesh Kithany, IHS senior analyst of home appliances.
There are three “critical factors,” according to IHS, that will affect consumer adoption of smart appliances: energy management initiatives such as dynamic pricing, government initiatives and the structure of utilities; standards for interoperability; and other marketplace dynamics such as product pricing, retail environment, competitive landscape, the approaches adopted by suppliers and overall interest in smart home technology.
Some retailers are already anticipating the coming leaps in the smartwares market. As reported by HFN, Target last week opened its Target Open House, a 3,500-square-foot space in San Francisco’s Metreon shopping center, with vignettes that demonstrate how multiple connected devices can work together in a home. Last month, Sears opened its Connected Solutions flagship store at The Shops at Tanforan in San Bruno, Calif., which spotlights products that can be operated with smart technology.