According to Euromonitor International’s new research, sales of connected appliances will register triple digit growth in in the next five years – from 30 million units sold in 2016 to 178 million units in 2020.
In 2016, half of these sales will be generated in China, which represents the leading connected appliances market globally with 15 million units sold. China is a unique market driven by appliances manufacturers and internet retailers, as well as government support.
Connected air conditioners lead the connected appliances market, with global sales growing from 11 million units in 2016 to 178 million units in 2020.
“Although sales of air conditioners are expected to fall in 2016, connected air conditioner sales stand out. Remotely controlling air conditioners is seen as convenient in countries with extremely hot summers or cold winters as consumers switch on the cooling or heating function before reaching home,” said Jamie Ko, head of consumer appliances at Euromonitor International. “Ultimately, energy savings and convenience are key to the adoption of connected appliances among consumers,” she added.
Connected appliances offer tangible benefits to consumers and create significant opportunities for other industries such as retailing. With the ability to scan the stock of items, connected fridge-freezers will boost internet retailing of food and beverages. Since connected appliances will be the key gateway to internet retailing, connected appliances are expected to generate great revenue for appliances manufacturers and internet retailers.