News IHS Technology
News IHS Technology Outlook Market for smart connected appliances to experience robust growth from 2015 to 2020 Nostalgia Innovates Along Classic Lines Americana comes to IFA via a new range of retro-themed appliances US-based Nostalgia Electrics is at IFA to debut its new breakfast-forward line of Retro Everyday appliances. A ‘50s-style water kettle, 12-Cup coffee maker and 2-slice toaster headline a new line of striking old school kitchen appliances that stand out from the stainless and brushed aluminum crowd. Nostalgia Electrics balances tradition and technology with classic innovations like the Vintage Collection Old Fashioned Hot Air Popcorn Maker, which is inspired by early 19th century American designs. Among a growing selection of quality, attentiongrabbing products, Nostalgia have since produced the Retro Series of Americana inspired kitchen appliances, a classic Coca- Cola line, and a Hollywood Series of theater-style appliances that deliver hot, buttery popcorn straight to living rooms. The products are sold through all major distribution channels across the United States and over 30 countries. Retail and e-retail sales include all major department store chains, home shopping networks, catalogs and e-commerce companies. The Nostalgia kitchen appliances debuting at IFA all feature the familiar Red Retro paint and chrome stripe styling, the mark of products inspired by the days when cars were finned and burgers were served up at diner counters. These Retro Series novelty appliances bring back an era of sock hops and jukeboxes into every kitchen. In addition to the Retro Everyday kettle, coffee maker and toaster, IFA trade visitors can test out the classically-styled cotton candy makers, snow cone makers and popcorn makers at the Nostalgia stand. Hall 10.1 Stand 125 Source: IHS 2014 Total Market 1Mn units 65% 5% 0.5% Based on a recent study by IHS Technology’s Home Appliance Intelligence Service, IHS says the global smart connected whitegoods market will grow from less than 1 million units shipped in 2014 to over 223 million units in 2020. The total addressable smart connected major home appliance (MHA) market is forecast to be 470 million units worldwide between 2015 and 2020. IHS calls this forecast "conservative" with an opportunity for the market to grow even more, depending on how rapidly appliance makers educate end consumers and provide appropriate price-to-value balance. The appliance types covered in this research include washing machines, clothes dryers, dishwashers, refrigerators, room airconditioners, and large cooking appliances. The penetration of these smart connected appliances is projected to grow from an estimated 0.2% in 2014 to 31.3% in 2020, with that of smart room air-conditioners reaching 52% and smart washing machines 42% in 2020. China is projected to be the leading market followed by the United States. If other types of small connected home appliances expected to gain popularity in next two years are added—like coffee 30% 12% 4% 2020 Total Market 223Mn units 68% 16% machines, robotic vacuums, rice cookers, microwave ovens, air purifiers, and electric toothbrushes—the smart connected home appliance market is forecast to be closer to 700 million units by 2020. the global smart connected white-goods market will grow from less than 1 million units shipped in 2014 to over 223 million units in 2020 IHS cites a number of reasons for this positive assessment of the sector. Firstly, over the last decade, consumers have evolved and quickly adopted new technology products, says IHS, thanks to the higher adoption of smartphones, familiarity with touch World market for smart connected major home appliances - Unit shipments (Mn) by and share by region (2014 & 2020) MEA Americas APAC Europe controls, the world of apps, and access to the internet. Secondly, as smart appliances are expected to be more energy-efficient than their traditional counterparts, there is a push by governments and regulatory authorities to support and develop this trend. And thirdly many appliance makers are shifting focus from the low-profit, lowgrowth traditional ‘nonsmart’ segment toward the high-margin, revenueoriented smart appliance segment. "Seeing this as a big-ticket opportunity, appliance makers are challenging themselves to feature connectivity in all their appliances by 2020," explains IHS. Change of mindset and directly engaging with end-consumers will be two factors that determine success, says Dinesh Kithany, senior analyst, home appliances, IHS Technology. "Traditional appliances manufacturers need to stop thinking and operating as manufacturing companies and instead approach the market more as technology providers. They need to continuously engage not only with distributors, sales depots, retailers, and OEM players as they have done in past, but also with endconsumers." www.ifa-international.org IFA International • Tuesday 8 th September 2015 9
