Technological Advancements in Smart Home Appliances to Boost The Market Growth
Key Technology Players Shifting Towards Launching Smart Home Appliances
The internet of things (IoT) has transformed automation technology in homes beyond imagination–leading to connected devices and smart homes. Smart home appliances are fast changing private spaces in homes. Smart home appliances can be defined as next-generation home appliances that are automated to receive, process and transmit volumes of information and communicate with various devices that include smartphones, tablets and laptops. The technology used to connect appliances enables the home owners get real time information on the appliance helping them get remote access and control.
Drivers & Growth Strategies
Factors such as real-time communication enabled by smart home appliances, technological advancements in automation technologies, increasing standards of interoperability of devices are expected to create ample growth opportunities for key market players. The growth opportunities in smart home appliances market are so vast that global technology giants such as Samsung, LG, Apple and many others have begun on capitalizing on first mover advantage by shifting their focus from mobile devices, television and businesses marked by intense competition and market saturation to making various smart connected home technology appliances. Market witnesses various technology companies benefit immensely from the efficient convergence of mobile devices and TVs with their home appliance business lines reaping huge dividends.
Market Prospects & Trends
As per a report by Allied Market Research “World Smart Home Appliances Market Opportunities and Forecasts, 2014 – 2020”, the market would grow at a CAGR of revenue of $38.35 billion by 2020, registering a CAGR of 16.6% during the forecast period of 2015–2020. The revenue estimated is generated from major devices such as washing machine, refrigerators, air conditioners and dishwashers including small electrical appliances such as vacuum cleaners and coffee machine. Among all technologies, smart washing machines generates the maximum revenue among all the appliances, owing to increased adoption and competitive prices; air conditioner segment is expected to witness the maximum growth rate, owing to the rise in market demand and massive launches of innovative product by the key market players. An emerging trend in smart homes appliances market is to be able to automatically replenish various supplies through smart payments. True replenishment in automation technology will depend on the manufacturer’s ability to include a secure payment options in a predefined refill process mechanism, enabling the system to be able to safely automate the entire acquisition cycle.
Consolidation of the market forces would result in increased adoption of smart homes appliances. ZigBee Alliance and the Thread Group last year announced a liaison agreement that would bring industry-leading applications library to make them compatible with Thread Group’s IP network layer. Key technologies discussed in the report are Wi-Fi, Radio Frequency Identification (RFID), ZigBee, cellular technology, and Bluetooth.