Smart Appliances
Smart appliances will play a critical role in the transformation to Smart Grid infrastructure adoption. Smart appliances are products that use electricity and have the ability to receive, interpret, and act on a signal received from a utility and then automatically adjust their operation to save energy or perform other functions. The growth and development of smart appliances represents a substantial component of the residential demand response capabilities of the Smart Grid. Smart appliances are sold as standalone products and marketed as highly energy-efficient machines that operate independently with minimal user maintenance. Despite this sales approach, SBI Energy finds that the growth trend of the global market for smart appliances is dependent upon the successful development of the larger electric Smart Grid.
Although it is not a requirement for smart appliance use, consumers can optimize the benefits of smart appliances by connecting them to a Home Energy Management System (HEMS) that maximizes the use of home electricity and is capable of trimming an estimated 15% off annual electric bills. Utilities, meanwhile, are looking at the much broader picture of Smart Grid infrastructure development and the consumer households that they serve. The utilities say the Holy Grail of the electric future depends on the successful overhaul of the grid, combined with the effective use of HEMS connected to smart appliances and smart meters at the home. Utilities and smart appliance manufacturers together agree that growth also highly depends on the willingness of consumers to adopt appliances and connect them to HEMS.
There are two main reasons why consumers will adopt smart appliances: either to gain an economic benefit from reduced energy costs or for the added conveniences some smart appliances bring to their daily lives. Consumers clearly expect an economic benefit to use smart appliances and are not prepared to change their behavior without the proper incentives from utility companies and appliance manufacturers. This report, “Global Market for Smart Appliances,” examines the market drivers for smart appliance adoption, including unit costs, manufacturing demand, regional and environmental factors, and consumer acceptance.
Although it is not a requirement for smart appliance use, consumers can optimize the benefits of smart appliances by connecting them to a Home Energy Management System (HEMS) that maximizes the use of home electricity and is capable of trimming an estimated 15% off annual electric bills. Utilities, meanwhile, are looking at the much broader picture of Smart Grid infrastructure development and the consumer households that they serve. The utilities say the Holy Grail of the electric future depends on the successful overhaul of the grid, combined with the effective use of HEMS connected to smart appliances and smart meters at the home. Utilities and smart appliance manufacturers together agree that growth also highly depends on the willingness of consumers to adopt appliances and connect them to HEMS.
There are two main reasons why consumers will adopt smart appliances: either to gain an economic benefit from reduced energy costs or for the added conveniences some smart appliances bring to their daily lives. Consumers clearly expect an economic benefit to use smart appliances and are not prepared to change their behavior without the proper incentives from utility companies and appliance manufacturers. This report, “Global Market for Smart Appliances,” examines the market drivers for smart appliance adoption, including unit costs, manufacturing demand, regional and environmental factors, and consumer acceptance.
CHAPTER 1 EXECUTIVE SUMMARY
DEMAND RESPONSE FUELS SMART APPLIANCE SUCCESS
THE NORTH AMERICAN SMART APPLIANCE MARKET
ASIA MARKET TREND
MARKET SIZE
Table 1.1 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2006 to 2011
Table 1.2 Average Global Unit Costs of Smart Appliance Manufacturing by Type of Appliance, 2011 to 2016
Figure 1.1 Consumer Spending on Smart Washers as a % of Total Spending on Smart Appliances by Region, 2012, 2016 and 2021
HEMS INSTALLATIONS GROW
Table 1.3 Estimated Global Annual Percentage Savings on Per Household Electricity Costs With HEMS, Smart Appliances and Combined, 2012, 2016 and 2021
FUTURE SPENDING
Figure 1.2 CAGR of Spending on Smart Appliances by Country, Cumulative Fifteen-Year Period of 2006 to 2021
Table 1.4 U.S. Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Figure 1.3 Global Market Value (in Millions) and Year-Over-Year Percent Growth of Smart Appliance Manufacturing
CONSUMER AND GOVERNMENT FACTORS
CHAPTER 2 INTRODUCTION
SCOPE OF THIS REPORT
METHODOLOGY
THE NEED FOR SMART APPLIANCES
SMART APPLIANCES, AMIS AND SMART METERS
SMART APPLIANCE ENABLE DEMAND RESPONSE
HEMS DEFINED
THE SMART GRID DEFINED
The Need for a Smart Grid
HOME ENERGY MANAGEMENT TECHNOLOGY
In-Home Energy Displays
Demand Response and Dynamic Pricing
Home Area Networks
Types of Smart Appliances
WASHING MACHINES
TUMBLE DRYERS
SMART DISHWASHER
OVENS
SMART REFRIGERATOR
Figure 2.1 Power Demand Curve of a Conventional Refrigerator
Figure 2.2 Power Demand Curve of Smart Refrigerators
AIR CONDITIONERS
WATER HEATERS
CHAPTER 3 MARKET TRENDS
DEMAND RESPONSE FUELS SMART APPLIANCE SUCCESS
Figure 3.1 Home Energy Management System Schematic with Smart Appliances
Figure 3.2 Energy Use in the Home by Appliance
PEAK LOAD-SHIFT FRACTION
Figure 3.3 Typical Electricity Load Curve of a Freezer by Time of the Day
Figure 3.4 Typical Load Curve of a Washing Machine by Time of the Day
Figure 3.5 Typical Freezer Operating Hours and Costs
EUROPE’S SMART APPLIANCE MARKET
Figure 3.6 Smart WasherShowing Price Information in Euros
EUROPE LOOKS TO REAP ECONOMIC BENEFITS OF SMART APPLIANCES
Figure 3.7 Appliance Load (in Watts) of Typical European Household Appliances
SmartHouse Project
THE NORTH AMERICAN SMART APPLIANCE MARKET
Figure 3.8 Proposed Architecture of Smart Appliance Configuration
ASIA MARKET TREND
CHAPTER 4 MARKET SIZE
Table 4.1 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2006 to 2011
Table 4.2 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2011 to 2016
Table 4.3 North America Market Value (in $ millions) of Smart Appliance Manufacturing by Region, 2006 to 2012
Figure 4.1 Global Units (in thousands) of Smart Appliances Manufactured, 2011 to 2021
Figure 4.2 Global Units (in thousands) of Smart Appliances Manufactured, 2011 to 2021
Table 4.4 Average Global Unit Costs of Smart Appliance Manufacturing by Type of Appliance, 2011 to 2016
Table 4.5 Average Global Unit Costs to Manufacture Smart Appliances by Type of Appliance, 2017 to 2021
Table 4.6 Market Value (in $ millions) of Smart Appliance Manufacturing by Region, 2006 to 2011
Table 4.7 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006 to 2011
Table 4.8 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006 to 2011
Figure 4.3 Smart Washing Machines Manufacturing as a Percent of Total Smart Appliance Manufacturing by Region, 2011 to 2021
Figure 4.4 Consumer Spending on Smart Washers as a % of Total Spending on Smart Appliances by Region, 2012, 2016 and 2021
Table 4.9 U.S. Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Table 4.10 Europe Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Figure 4.5 Smart Refrigerators Manufacturing as a Percent of Total Smart Appliance Manufacturing by Region
Figure 4.6 Global Share of Smart Appliance Manufacturing by Type of Appliance Produced, 2011 to 2021
Table 4.11 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2012 to 2016
Table 4.12 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2017 to 2021
Table 4.13 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2012 to 2016
Table 4.14 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2017 to 2021
Table 4.15 Asia Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Table 4.16 Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006, 2011, 2012, 2016 and 2021
HEMS INSTALLATIONS GROW
Table 4.17 Estimated Global Annual Percentage Savings on Per Household Electricity Costs With HEMS, Smart Appliances and Combined, 2012, 2016 and 2021
Figure 4.7 Global HEMS Installed Base and Smart Appliances Manufactured (in Thousands), 2011 to 2021
Figure 4.8 Global HEMs Household Installed Base (in Thousands) and Year-Over-year Growth, 2006 to 2020
Figure 4.9 Share of Global HEMS Installed Base, 2006 to 2020
Figure 4.11 Schematic of Smart Appliances in a HEMS Network
Figure 4.12 Total Smart Appliances Manufactured (in Thousands) and Year-Over-Year Percent Growth, 2011 to 2021
FUTURE SPENDING
Table 4.18 U.S. Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.19 Korea Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.20 Japan Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.21 Sweden Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Figure 4.13 CAGR of Spending on Smart Appliances by Country, Cumulative Fifteen-Year Period of 2006 to 2021
Table 4.22 U.S. Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Table 4.23 Europe Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Table 4.24 Asia Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Figure 4.14 Global Market Value (in Millions) and Year-Over-Year Percent Growth of Smart Appliance Manufacturing
Table 4.25 Global Market Size (in $ Millions) of Smart Appliance Manufacturing by Region, 2017 to 2021
Figure 4.15 Share of Smart Washing Machine Manufacturing by Region, 2011 to 2021
Figure 4.16 Smart Washing Machine Manufacturing as a Percent of Total Smart Appliance Manufacturing By Region
CHAPTER 5 COMPANY PROFILES
Figure 5.1 2012 Market Share of Leading Smart Appliance Manufacturers
Figure 5.2 LG Electronics Sales (in $ millions) by Business Unit, 2009 to 2011 (e)
Table 5.1 Panasonic Total Sales (in $ billions) and Home Appliance Sales, 2009 to 2011
Figure 5.3 Indesit Home Appliance Sales (in $ billions), 2009 to 2011
Figure 5.4 Electrolux Home Appliance Sales (in $ billions), 2009 to 2011
Table 5.2 General Electric Sales (in $ billions) by Business Unit, 2009 to 2011
Figure 5.3 General Electric Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
Figure 5.4 Whirlpool Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
Figure 5.5 Samsung Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
CHAPTER 6: MARKET FACTORS
Figure 6.1 Consumer Opinions on Household Energy Management
Risks and Issues
Consumer Perception of HEMS
Table 6.1 European Households Using a Smart Appliance (% of Survey Respondents)
Positive Consumer Attitudes
APPLIANCES AND SECURITY CONCERNS
DEMAND RESPONSE FUELS SMART APPLIANCE SUCCESS
THE NORTH AMERICAN SMART APPLIANCE MARKET
ASIA MARKET TREND
MARKET SIZE
Table 1.1 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2006 to 2011
Table 1.2 Average Global Unit Costs of Smart Appliance Manufacturing by Type of Appliance, 2011 to 2016
Figure 1.1 Consumer Spending on Smart Washers as a % of Total Spending on Smart Appliances by Region, 2012, 2016 and 2021
HEMS INSTALLATIONS GROW
Table 1.3 Estimated Global Annual Percentage Savings on Per Household Electricity Costs With HEMS, Smart Appliances and Combined, 2012, 2016 and 2021
FUTURE SPENDING
Figure 1.2 CAGR of Spending on Smart Appliances by Country, Cumulative Fifteen-Year Period of 2006 to 2021
Table 1.4 U.S. Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Figure 1.3 Global Market Value (in Millions) and Year-Over-Year Percent Growth of Smart Appliance Manufacturing
CONSUMER AND GOVERNMENT FACTORS
CHAPTER 2 INTRODUCTION
SCOPE OF THIS REPORT
METHODOLOGY
THE NEED FOR SMART APPLIANCES
SMART APPLIANCES, AMIS AND SMART METERS
SMART APPLIANCE ENABLE DEMAND RESPONSE
HEMS DEFINED
THE SMART GRID DEFINED
The Need for a Smart Grid
HOME ENERGY MANAGEMENT TECHNOLOGY
In-Home Energy Displays
Demand Response and Dynamic Pricing
Home Area Networks
Types of Smart Appliances
WASHING MACHINES
TUMBLE DRYERS
SMART DISHWASHER
OVENS
SMART REFRIGERATOR
Figure 2.1 Power Demand Curve of a Conventional Refrigerator
Figure 2.2 Power Demand Curve of Smart Refrigerators
AIR CONDITIONERS
WATER HEATERS
CHAPTER 3 MARKET TRENDS
DEMAND RESPONSE FUELS SMART APPLIANCE SUCCESS
Figure 3.1 Home Energy Management System Schematic with Smart Appliances
Figure 3.2 Energy Use in the Home by Appliance
PEAK LOAD-SHIFT FRACTION
Figure 3.3 Typical Electricity Load Curve of a Freezer by Time of the Day
Figure 3.4 Typical Load Curve of a Washing Machine by Time of the Day
Figure 3.5 Typical Freezer Operating Hours and Costs
EUROPE’S SMART APPLIANCE MARKET
Figure 3.6 Smart WasherShowing Price Information in Euros
EUROPE LOOKS TO REAP ECONOMIC BENEFITS OF SMART APPLIANCES
Figure 3.7 Appliance Load (in Watts) of Typical European Household Appliances
SmartHouse Project
THE NORTH AMERICAN SMART APPLIANCE MARKET
Figure 3.8 Proposed Architecture of Smart Appliance Configuration
ASIA MARKET TREND
CHAPTER 4 MARKET SIZE
Table 4.1 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2006 to 2011
Table 4.2 Global Market Value (in $ millions) of Smart Appliances by Type of Appliance, 2011 to 2016
Table 4.3 North America Market Value (in $ millions) of Smart Appliance Manufacturing by Region, 2006 to 2012
Figure 4.1 Global Units (in thousands) of Smart Appliances Manufactured, 2011 to 2021
Figure 4.2 Global Units (in thousands) of Smart Appliances Manufactured, 2011 to 2021
Table 4.4 Average Global Unit Costs of Smart Appliance Manufacturing by Type of Appliance, 2011 to 2016
Table 4.5 Average Global Unit Costs to Manufacture Smart Appliances by Type of Appliance, 2017 to 2021
Table 4.6 Market Value (in $ millions) of Smart Appliance Manufacturing by Region, 2006 to 2011
Table 4.7 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006 to 2011
Table 4.8 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006 to 2011
Figure 4.3 Smart Washing Machines Manufacturing as a Percent of Total Smart Appliance Manufacturing by Region, 2011 to 2021
Figure 4.4 Consumer Spending on Smart Washers as a % of Total Spending on Smart Appliances by Region, 2012, 2016 and 2021
Table 4.9 U.S. Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Table 4.10 Europe Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Figure 4.5 Smart Refrigerators Manufacturing as a Percent of Total Smart Appliance Manufacturing by Region
Figure 4.6 Global Share of Smart Appliance Manufacturing by Type of Appliance Produced, 2011 to 2021
Table 4.11 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2012 to 2016
Table 4.12 Europe Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2017 to 2021
Table 4.13 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2012 to 2016
Table 4.14 Asia Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2017 to 2021
Table 4.15 Asia Spending (in $ millions) on Smart Appliances by Type of Appliance, 2012, 2016 and 2021
Table 4.16 Market Value (in $ millions) of Smart Appliance Manufacturing by Country, 2006, 2011, 2012, 2016 and 2021
HEMS INSTALLATIONS GROW
Table 4.17 Estimated Global Annual Percentage Savings on Per Household Electricity Costs With HEMS, Smart Appliances and Combined, 2012, 2016 and 2021
Figure 4.7 Global HEMS Installed Base and Smart Appliances Manufactured (in Thousands), 2011 to 2021
Figure 4.8 Global HEMs Household Installed Base (in Thousands) and Year-Over-year Growth, 2006 to 2020
Figure 4.9 Share of Global HEMS Installed Base, 2006 to 2020
Figure 4.11 Schematic of Smart Appliances in a HEMS Network
Figure 4.12 Total Smart Appliances Manufactured (in Thousands) and Year-Over-Year Percent Growth, 2011 to 2021
FUTURE SPENDING
Table 4.18 U.S. Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.19 Korea Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.20 Japan Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Table 4.21 Sweden Market Value (in $ millions) of Smart Appliance Manufacturing by Type of Appliance, 2006, 2012, 2016 and 2021
Figure 4.13 CAGR of Spending on Smart Appliances by Country, Cumulative Fifteen-Year Period of 2006 to 2021
Table 4.22 U.S. Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Table 4.23 Europe Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Table 4.24 Asia Spending (in Millions) by Type of Appliance, 2012, 2016 and 2021
Figure 4.14 Global Market Value (in Millions) and Year-Over-Year Percent Growth of Smart Appliance Manufacturing
Table 4.25 Global Market Size (in $ Millions) of Smart Appliance Manufacturing by Region, 2017 to 2021
Figure 4.15 Share of Smart Washing Machine Manufacturing by Region, 2011 to 2021
Figure 4.16 Smart Washing Machine Manufacturing as a Percent of Total Smart Appliance Manufacturing By Region
CHAPTER 5 COMPANY PROFILES
Figure 5.1 2012 Market Share of Leading Smart Appliance Manufacturers
Figure 5.2 LG Electronics Sales (in $ millions) by Business Unit, 2009 to 2011 (e)
Table 5.1 Panasonic Total Sales (in $ billions) and Home Appliance Sales, 2009 to 2011
Figure 5.3 Indesit Home Appliance Sales (in $ billions), 2009 to 2011
Figure 5.4 Electrolux Home Appliance Sales (in $ billions), 2009 to 2011
Table 5.2 General Electric Sales (in $ billions) by Business Unit, 2009 to 2011
Figure 5.3 General Electric Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
Figure 5.4 Whirlpool Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
Figure 5.5 Samsung Sales (in $ billions) and Year-Over-Year Growth, 2009 to 2011
CHAPTER 6: MARKET FACTORS
Figure 6.1 Consumer Opinions on Household Energy Management
Risks and Issues
Consumer Perception of HEMS
Table 6.1 European Households Using a Smart Appliance (% of Survey Respondents)
Positive Consumer Attitudes
APPLIANCES AND SECURITY CONCERNS
