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Smart Appliances

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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

Table of Contents :

 

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

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