The Internet of Things home market is expected to be worth $200-350 billion by 2025. For appliance brands looking to get their piece of the pie, the task ahead may seem daunting. With less than 5% of U.S. broadband households owning a smart appliance, there are significant challenges to get consumers to adopt them.
Consumers have high expectations. They want more than just an internet-connected device. They want "smart" devices that can learn from their behavior and adapt to situations as necessary. With the right recipe, brands can seize this enormous opportunity and create a real value proposition for smart appliances.
That is the question appliance OEMs must answer. Consumers may have access to connected appliances, but the key is in making those appliances smart. These appliances utilize artificial intelligence and machine learning to understand user behavior and react as necessary. For example, a fridge that knows its doors will not be opened Monday through Friday during work hours can regulate its temperature on its own to save energy. It's all about smart appliances adapting to the habits and routines of the user. Here are some other considerations for smart appliances:
What is holding back consumers from adopting smart appliances in their homes? OEMs need to address these four critical areas to encourage adoption:
With the buying power of millenials increasing by the day, opportunities for smart appliance OEMs to prepare for the new buyer are increasing. The OEMs that can create and prove the value of smart appliances will reap benefits early. That is an essential piece to acknowledge in a market where buyers are not looking to repeat purchase in five or more years.