Smart appliances market gains momentum, to exceed 24M by 2017

Just like the market for home energy management systems (HEMS), the smart appliances sector has not been as successful as many had expected. Some devices are still in small pilots and have had difficulties to hit retail outlets in large numbers. However, things may take a positive turn as shipments for smart appliances as the market is expected to gain momentum and exceed 24 units by 2017, according to ABI Research.

One sure sign that the market may soon see substantial growth is the growing number of major appliance manufacturers showcasing their new products in recent trade shows. "LG Electronics, for example, along with fellow South Korean appliance manufacturer, Samsung Electronics, are two of the first companies to have already brought a comprehensive range of smart appliances to market," says Craig Foster, senior analyst, home automation and M2M at ABI Research. "Whirlpool, BSH, Miele, and Electrolux are among the other leading players to have unveiled one or more smart products."

The rapid growth, coupled with progress on improving the interoperability of all aspects of the smart grid as well as developments in energy costs will definitely push the market to flourish. However, the ultra-premium price tags could put a damper on the market's success. It may take a couple of years before prices will be able to attract consumer demand.

ABI Research also added that the number of households with utility-provided HEMS will increase from an estimated 2.5 million households in 2011 to 36 million households in 2017. "In the early stages of the HEMS market, an almost unanimous perception existed that utilities would lead the way in terms of the deployment of these solutions. However, utilities are now widely considered to have acted much slower than many anticipated, allowing many other routes to market to develop," Foster said.