SOURCE: Parks Associates

Parks Associates

July 20, 2016 10:30 ET

Parks Associates: Less Than 5% of U.S. Broadband Households Own a Smart Appliance

Consumer Research Shows Limited Inventory and High Cost Impacting Market Adoption

DALLAS, TX--(Marketwired - Jul 20, 2016) -  New consumer research by Parks Associates finds that less than 5% of U.S. broadband households own a smart appliance such as a full-sized refrigerator, oven, dishwasher, or washer/dryer that can be monitored or controlled using a smartphone, tablet, or computer. 360 View Update: Consumer Demand for Connected Major Appliances shows 18% of consumers plan to buy a smart appliance in the next 12 months.

"Smart appliances have generated lots of attention, but market adoption is low due to low product availability, higher costs, and use cases that do not address customer needs," said Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates. "Focusing on applications that consumers value will help increase demand. For example, the most desired capabilities for smart stoves or ovens are features that prevent food from burning or overcooking."

According to Parks Associates, 53% of U.S. broadband households with or planning to buy a smart dishwasher value its ability to automatically adjust settings in order to not melt plastics. One-third of these consumers find its ability to order detergent appealing.

"Purchase intentions of major appliances that can be connected to the Internet have grown from 9% in early 2014 to 18% in late 2015," Kerber said. "However, the fact that actual adoption rates are far lower reflects a disconnect in the industry. Recipe apps and features get lots of attention in marketing smart stoves and refrigerators, but in today's U.S. broadband households, nearly 60% of meals are prepared without a recipe. Only 19% use a recipe from an Internet source. For smart appliances to be successful, manufacturers need to understand how consumers want to use these devices."

In-store retail has accounted for the bulk of smart appliance purchases to date, but online channels appear to be gaining strength, accounting for one-third of the smart appliances purchased in 4Q 2015. The introduction of the next-generation Samsung refrigerator at CES® 2016 and recent marketing efforts by new entrants to the category will push global app downloads for smart appliances past 650,000.

Parks Associates will address smart appliance adoption and trends at the firm's Smart Energy Summit: Engaging the Consumer on February 20-22, 2017, in Austin, Texas. Visit www.ses2017.com for updates on the conference and the expanding market for energy solutions and home controls.

360 View Update: Consumer Demand for Connected Major Appliances is available to purchase at www.parksassociates.com. To schedule an interview with an analyst or to request specific energy management or smart home data, contact Holly Sprague at hsprague@gmail.com, 720.987.6614.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer. http://www.parksassociates.com

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