Smart Appliance Sales to Reach 45 Million Units Annually by 2020, Forecasts Pike Research

Smart Appliance Sales to Reach 45 Million Units Annually by 2020, Forecasts Pike Research

BOULDER, Colo.--(BUSINESS WIRE)-- Smart appliances will likely start to make their way into households in greater numbers after 2015. Defined as major household appliances that use intelligent power management technology to help optimize electrical load on the power distribution grid, these appliances offer consumers the benefits of reduced energy usage, lower energy costs, lower carbon emissions, and advanced features such as remote control. To utilities, they offer increased visibility and peak demand management. According to a new report from Pike Research, a part of Navigant's Energy Practice, worldwide sales of smart appliances will climb rapidly over the remainder of this decade, reaching just under 45 million units per year in 2020.

"Positive growth around the world in the overall household appliance market presents opportunities for the smart appliance submarket, especially with the continuing investment in smart grid initiatives," says research director Carol Stimmel. "However, consumers will only be motivated to move to smart appliances prior to their 10-year average replacement cycle if the appliances have the right price and enable them to save on energy costs. Economies of scale, better technical integration, and the emergence of dynamic pricing are critical elements to realizing the potential of the smart appliance market."

Several key players in the general appliance market, including Bosch, Electrolux, GE, Indesit, and Whirlpool, have pilot programs underway. On the other hand, some manufacturers have taken a wait-and-see approach to the smart grid. These appliance makers are concerned with the size and scope of projects relative to the number of meters being installed. With millions of meters deployed, manufacturers would like to see more efforts toward understanding consumer responses to smart appliances and to the overall smart grid. As with many smart grid initiatives, utilities and service providers are learning that positive customer engagement is vital to success.

The report's analysis indicates that the highest-volume segments in the smart appliance market will be clothes dryers, clothes washers, dishwashers, and refrigerators/freezers. Other smaller market segments, according to the report, will include water heaters, window air conditioning units, and ranges/hobs/ovens.

The report, "Smart Appliances", examines the current state of the global smart appliance market, including an analysis of barriers and drivers, enabling technologies, regulatory factors, and key industry players. The study features detailed market forecasts of smart appliance unit shipments, revenues, and penetration rates, segmented by appliance product category and key world regions, through 2020. Key industry players are also profiled in detail. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, "Smart Appliances," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Pike Research
Richard Martin, +1.303.997.7609
richard.martin@navigant.com
or
Laverne Murach, +1.202.481.7336
laverne.murach@navigant.com

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