BILLIONS IN SMART APPLIANCES

Smart Appliances; Household Appliances on the Smart Grid: Energy Management and Demand Response Applications, Communications Technologies, Standards, and Key Industry Players
Jon Walton and Bob Gohn, 4Q 2010 (Pike Research)

"…Aggressive mandates established by the Kyoto Protocol and other international agreements are driving governments and industry…Smart grid initiatives around the world are rolling out smart meters with the vision of improved load management, increased reliability, and consumer awareness. Smart appliances have a significant role to play in realizing this vision because they provide the all-important link to the biggest residential energy loads.

"The smart appliance market is on the cusp of transitioning from the development stage to commercialization and growth…There are four key drivers…[1] Dynamic pricing…to elicit changes in the way consumers use energy…[2] Standards…to handle messaging between appliances, the grid, and any other parties involved…[3] Control & privacy…Consumers demand final control…[4] Education…Innovations and best practices need to be shared so that all participants are willing to play."

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"Indications are that the industry is close to resolving two of these issues: standards and control & privacy…Pike Research believes that manufacturers will begin to embed communications technologies in the majority of their product lines…The question of control will continue to be worked out...[E]ducation is an ongoing effort…

"North America, Asia Pacific, and Europe will dominate the smart appliance market throughout the 2010-2019 forecast period. Pike Research expects worldwide smart appliance sales to reach $26 billion by 2019…Asia Pacific and North America in 2019…will account for over 80% of smart appliance demand…"

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"…Canada is well on its way toward achieving 100% smart meter penetration while the United States is just starting to see projects from its massive $4.5 billion smart grid stimulus funding…China will be the leading smart appliance market in the Asia Pacific region…[and] will lead to a $10 billion smart appliance sector by 2019. Australia has a number of projects underway…Smart appliance projects in Italy, Germany, the United Kingdom, and Spain are evaluating refrigerators, freezers, clothes washers, and clothes dryers. The only downside to the EU market is low penetration rates for home energy management tools…

"…Key industry players, including Bosch, Electrolux, GE, Indesit, and Whirlpool, have pilot programs underway…[S]ome manufacturers have taken a wait-and-see approach…Pike Research’s projections call for the market to reach $6.3 billion by 2015 and close to $26.1 billion by 2019…"