Smart Appliances, SBI

• Publication date: June 2012
• Report size: 141 pages

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 respons...

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.

Global Major Appliance Industry

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