AI and IoT: The future of the connected home?
The internet of things (IoT) and appliance connectivity was a hot topic in the years leading up to 2020, but it hasn’t been hitting the headlines as much since. Is this because it hasn’t taken off in the way that was hoped, or because the technology has simply become ubiquitous? Francesca Seden reports…
Some experts in the appliance industry believe we’re only in the foothills of the burgeoning connected home market, and that intelligent, AI-driven, connected appliances will dominate over those models with less, or no, ‘smart’ features.
They say that IoT has become a seamless, integral part of connected appliances and that connectivity is proving to be a lasting and transformative trend, offering unparalleled convenience.
“We no longer notice it as a distinct entity”, BSH connected home lead, Rebecca Hobson comments. “It is so embedded in our everyday lives – in smartphones, smartwatches and voice assistants, it has become a normal part of how we live and interact with the world.”
A recent report from Statista noted that 44.9% of consumers will have a smart appliance by 2028. Currently, household penetration is around 18% (for the whole of the year 2024).
The number of active households is expected to amount to 13.5m users by 2028, and revenue in the smart appliances market is projected to reach $3.1bn (£2.34bn) in 2024, showing an annual growth rate of 12.49%, which is predicted to result in a projected market volume of $5.0bn by 2028.
To get to those numbers however, there may still be a few hurdles to jump. One of these is concern over the cybersecurity of these appliances, which can be vulnerable to hackers, particularly if users aren’t fully savvy to the dangers and the importance of strong passwords.
Another “pain point” of the past, as Samsung head of brand marketing for home appliances, Gino Grossi describes it, “was that each brand had their own app and products which restricted use across the home, like if your heating app wouldn’t talk to your lighting app. In a way, they were all competing to ‘own’ your home.
“It was therefore a very laborious process to setup a smart home and often involved management of multiple systems which increased the time investment, and ultimately, put a lot of people off. However, through our SmartThings app we have ensured we are device agnostic with more than 200 different brands that you can control seamlessly in one central place.
“Samsung’s open and collaborative approach also means that it works across iOS devices as well as Android.”
There appear to be a number of key factors driving momentum, such as efficiency, convenience, and sustainability, as well as a growing awareness of the technology and its benefits. These things are all helping to push the market forward and are shaping the development of features and functionality.
Features must be user-friendly and with clear and obvious benefits, “which is why gesture and voice controls are so popular,” Franke UK’s sales and marketing director, Jo Sargeant says. “Just look at the rapid adoption of voice assistants like Alexa and Siri among users of all ages – it’s clear that people appreciate intuitive, easy-to-use solutions that fit seamlessly into their everyday lives.”
Trends
As well as gesture and voice control, the other big trend is app connectivity which allows users to monitor their appliance in various ways. One of the most obvious of these is probably the fridge camera, which allows users to see inside the appliance while they’re out, or identifies the food and notifies the user of expiration dates, and can even come up with recipes based on the fridge contents, as is the case with Samsung’s AI Vision Hub.
Another important feature is remote monitoring, as well as fault finding/remote diagnostics – particularly useful in washing machines and dishwashers where the dose of detergent, the temperature and the type/size of load all have implications for how the machine runs, as well as having implications in terms of sustainability and efficiency. Fault finding and smart diagnostics can also help save time and money as an engineer may not need to do some of the exploratory work that might otherwise be necessary.
Jessica Rhodes, product and marketing manager for Asko, believes this will become a clear focus and more important, in the near future. “Smart diagnostics, allow us to assist the consumer quickly by examining data from the appliance and then remotely controlling them for troubleshooting,” Rhodes says. “We can also alert the consumer before a possible issue arises, making life easier.”
Implications
In terms of implications for the KBB sector, this month’s contributors all agreed that AI is beginning to play a significant part, with Miele GB product training manager, Sophie Lane, stating that “AI is revolutionising the way homes are experienced, particularly in the kitchen.”
She says it’s not just about seamlessly automating tasks, it’s about creating a more personalised, efficient, and sustainable living environment.
Stephanie Kerr, senior product manager for appliances at Häfele adds that AI’s role is “to be more intelligent, apply human-like thinking to actions, and respond proactively”.
Looking further into the role that AI technology will play in appliances and kitchens, bathrooms, and bedrooms technology of the future, Samsung’s Grossi goes on to say that its recent Smart Home Buyers Index 10 indicates over 56% of consumers are already using AI in their daily lives, with almost a third (32%) reporting that they want AI to assist them with household chores, and 59% said that they wanted AI to improve their energy efficiency.
With a final word on the topic of AI, Steve Jones, managing director at buying group Sirius, comments: “I anticipate that enhanced connectivity through AI is something that will become increasingly universal and expected by consumers as more and more people see the benefits of smart technology firsthand when they replace appliances or trade up.
“Today’s changing economic circumstances give a new impetus and urgency to showing how AI can increase efficiency and consequently deliver improved value for money alongside protecting the planet’s precious resources.”
To sell these products and get consumers on board, it’s about demonstrating the real-world benefits, encouraging hands-on interaction and showcasing all the attention-grabbing functionality such as voice activation and app control.
“It’s also essential to go beyond that and demonstrate how these appliances integrate into daily routines,” Rebecca Hobson, connected home lead at BSH adds. “By sharing real-life use cases and understanding individual preferences, retailers can guide consumers toward choosing appliances that will simplify their lives day by day.”
Connected bathrooms
With our key question based on the internet of things and AI this month, the feature has naturally been more appliance-focused, but of course, bathrooms are increasingly hubs of connectivity too, with smart shower loos, digital showers, smart mirrors, smart lighting and even bathroom TVs and connected accessories.
According to Lewis Neathey, leader, product management, LIXIL EMENA and Grohe UK, the key drivers for innovation in the connected bathroom market include changing consumer preferences, technological advancements and broader societal trends. He says that consumers are increasingly drawn to convenience, fuelling the demand for smart home solutions that offer a heightened level of comfort and convenience.
Health, wellness and sustainability societal trends also play a crucial role. Consumers have become more aware that using paper is not the best solution from a hygiene perspective but also from a sustainability view. In other categories, we have seen an increased interest for energy saving “cold start” taps and water saving showers.
As an example of technology advancements, we can look at the bidet category. The biggest barrier for the bidet category has always been finding enough space in the bathroom design and the aesthetics of having a second ceramic. Advances in technology, driven primarily from Japan, have helped remove that barrier and introduced the shower toilet to the UK market. Additionally, the trend towards smart connected products have recently created the next step in product features & personalisation.
Neathey says that all this, and advancements in shower toilets make the products a “compelling choice for retailers aiming to offer cutting-edge solutions in bathroom design”.
In terms of selling connected and smart bathroom technology more effectively in the showroom, the answer, as always, comes down to demonstration, as well as “engaging, interactive displays”.
“Having working displays helps, especially to demonstrate all of the functions the various technology has to offer,” explains Faye Young, senior designer at Ripples Bournemouth. “We have mirrors and mirrored cabinets with lighting that have different functions, such as heated doors, light controls, Bluetooth speakers and charging sockets. Our lighting display board shows the range in lighting colour, intensity, styles and functions.”
Grohe’s Neathey adds: “It’s important to create strong stories that demonstrate the features and prepare some small conversational triggers that you can use to lead the discussion. This can be done by drawing back to some of the broader societal trends like sustainability or hygiene but also building a good understanding of your customers lifestyle and needs.
“Retailers should also ensure that point-of-sale materials are informative and visually appealing, and that they provide clear explanations of how the technology works and its benefits. By demonstrating real-world applications and highlighting the tangible advantages of connected products, retailers can help customers better understand their value and make more informed purchasing decisions.”
What's next for smart tech?
1. Emerging trends in smart security – According to GFU Consumer Home and Electronics, the organisers of consumer electronics fair IFA, the landscape of smart home technology is rapidly evolving, with significant strides in smart security. Consumer demand for enhanced convenience, security, and energy efficiency is driving growth.
2. Growth potential in smart lighting – GFU says that the market is shifting towards smart LED lamps that provide energy savings and greater control via voice and app integrations. These smart LED lamps have shown a turnaround in the first quarter of 2024 following a sharp decline in 2023.
3. Affordability in usage convenience – GfK and TechUK’s connected home study 2023 found that one in four UK consumers intend to spend more on smart devices than they did last year. As prices become more competitive and technology more integrated into daily life, the adoption of smart home solutions is expected to rise.