Jan 27 2017
This year’s Consumer Electronics Show (CES) in Las Vegas demonstrated the next frontier for consumer technology: smart, Wi-Fi-enabled devices for the home. The annual trade show, which was held from January 5 to 8, is known for showcasing and previewing the year’s newest and most exciting technologies, including new releases, as well as concepts and prototypes. While this year’s event showcased plenty of technologies that may not reach consumers’ hands until after 2017, new innovations are expected to drastically change the product roadmaps of many key industries.
Household appliances are leading the shift toward internetworking and connectivity of devices. With embedded software and wireless connectivity in new products, traditional computing devices, such as desktop computers, tablets and mobile devices can now be used to remotely monitor, communicate with and control many functions throughout one’s home. This phenomenon, known as the Internet of things (IoT), has most clearly affected the Major Household Appliance Manufacturing industry, which is expected to post $15.8 billion in revenue in 2017.
Major household appliances include refrigerators, cooking appliances, washers and dryers, water heaters, dishwashers and other small appliances. Currently the most prominent segment for IoT development has been refrigerator manufacturing, with major companies Samsung and LG introducing products with interactive touchscreens, wireless connectivity with home stereo systems and television mirroring. Household refrigerators and freezers comprise an estimated 20.3% of industry revenue, trailing the 31.4% share of the cooking appliances segment, which includes all electric ranges, ovens, surface cooking units and equipment.
Home security systems
Home security devices have undergone continual technological change for decades, first from simple door breach alarms to today’s high-definition camera systems. Nest Labs, which Google acquired for $3.2 billion in 2014, has been a leader in technological development in the home security market. Nest Labs has provided home thermostats and home security systems that include automated sensors, locks, alarms and remote controls. ADT, a major player in the Security Alarm Services industry, has followed suit by forming a partnership with the Ford Motor Company to develop home-monitoring platforms into Ford’s SYNC AppLink software. This industry will play a key role in new smart technologies over the next five years, with revenue anticipated to grow at an annualized rate of 2.5% to $26.1 billion over the five years to 2022.
Light bulbs, blinds, fans and doors
Many of the home’s most modest accessories have represented perhaps the most rapid growth for smart home product expansion. The Lighting and Bulb Manufacturing, Blind and Shade Manufacturing and Garage Door Manufacturing industries have projected revenue totals of $1.6 billion, $2.0 billion and $4.3 billion, respectively, in 2017. Combined, these industries collectively comprise about half of the Major Household Appliance Manufacturing industry’s projected revenue for 2017, yet growth opportunities are nevertheless enormous. Companies such as Helia and Leviton introduced smart light-emitting diode (LED) bulbs that can be controlled or timed via mobile devices and switched, dimmed or change hues based on the user’s sleep schedule. Similar automated functionality can be found for blinds and shades, ceiling fans and garage doors, all of which use IoT router communication and mobile applications to schedule specific behaviors.
Interconnectedness between devices in the home has brought automobiles closer to the home ecosystem than ever before. Automakers are increasingly scrapping third-party and in-house navigation and information systems in exchange for synchronization with pre-existing software, such as Apple’s iOS. Through its CarPlay adaption of its mobile operating system, Apple has laid the framework for extending many smart home functions into the car. Wireless pairing between the user’s mobile device and car allows for instant synchronization of phone capabilities, music, maps, messages and automobile diagnostics from the car manufacturer. Connectivity with Apple’s HomeKit interface has now made a link between the automobile, garage door openers and other automated home electronics and appliances from the car dashboard possible. Continued development of this new technology may soon allow a user’s connected web of computers, mobile devices and smart appliances to extend even outside of the home.
Makes in the Car and Automobile Manufacturing industry, including Acura, Audi, BMW, Cadillac, Chevrolet, Chrysler, Dodge, Fiat, Ford, GMC, Honda, Hyundai and Jaguar, have partnered with CarPlay on select models to lead the charge in pioneering connectivity across the car, home and mobile device. Industry revenue is anticipated to rise at an annualized rate of 2.3% to $132.3 billion over the five years to 2022. Automobile manufacturers represent the largest market for smart technology to expand.