Five predictions for increased connectivity, interoperability, usability, intelligence and security.
With another Consumer Electronics Show (CES) in the rear-view mirror, designers and developers of smart homes and appliances are looking ahead at the major trends and developments driving the growth trajectory of this fast-moving market. According to a recent report by Fortune Business Insights, the global smart home market is projected to reach $623 billion by 2026, representing a CAGR of 29.3% during a forecast period started in 2019.
This impressive growth has been fueled in part by an uptick in pandemic-related home improvements. Still, expectations are high that brisk adoption of home automation and smart appliances will advance everything from door locks, lighting and thermostats to security solutions, entertainment systems and home gyms, as well as household appliances, tools and hardware.
“Smart technologies are permeating our homes, workplaces and fitness routines at an accelerating pace,” said Andrew Glickman, director of strategic development, Jabil Smart Home and Appliance sector. “To meet ever-increasing demand and deliver personalized customer experiences, device and appliance makers must integrate advanced functionality while optimizing convenience, comfort, efficiency and speed.”
To that end, the following five predictions for increased connectivity, interoperability, usability, intelligence and security will drive developments in smart homes and appliances for 2022 and beyond.
- Seamless connectivity matters most. At CES22, “matter’’ was the mantra for smart home device announcements as nearly 30 companies showcased involvement or pledged support for this wireless, IP-based connectivity standard. With Apple, Google, Amazon and Samsung leading the charge since 2019, “matter” is poised to arrive mid-year, but it likely will take longer to ensure that new and existing smart devices and home hubs connect and communicate seamlessly.
- Interactive home gyms meet rise in at-home workouts. While the rapid ascent of Peloton during the pandemic earned the company an enviable spot in the quarantine economy, interest in getting a better workout at home is creating a fast-growing market for interactive home gym solutions. Increasingly innovative solutions from CLMBR, Nautilus, Technogym, Tonal and Zwift are gaining traction. As these smart fitness companies continue to combine the latest technologies, sticking to the perennial New Year’s resolution to exercise more is getting easier.
- Customers really are the center of the universe. It’s no surprise that product differentiation in the smart home and appliance market is greatly influenced by which companies deliver the ultimate customer experiences. For that reason, focus is intensifying on how best to elevate usability by ensuring heightened comfort, convenience and performance. As a result, leading companies are embracing intuitive human-machine interfaces, display technologies, capacitive touch, voice activation, sustainable materials, embedded sensors, miniaturization and more.
- Data Security looms large. Smart home and appliance manufacturers must continually balance opportunities to gather and analyze device data to expedite problem resolution and inform future product development with the critical need to protect customers’ privacy. That’s why data privacy and security are front-and-center issues in this sector for the foreseeable future. Nothing erodes customer trust faster than feeling their personal data is being used improperly.
- Devices get smarter, thanks to AI. A rapid proliferation of sensors are empowering new levels of smart home device and appliance performance and communication. As more sensors become embedded in all types of appliances, they will enter the mainstream and get even smarter thanks to artificial intelligence and machine learning tools. While AI and ML are playing important roles in home security today, plentiful opportunities are starting to flow into other areas, including large appliances, to tailor operation based on customer preferences.
Jabil Smart Home and Appliances
Over the past 20 years, Jabil’s experts across the company’s Smart Homes and Appliances business have applied deep design, engineering, supply chain management and manufacturing expertise for many of the world’s best-known brands. That’s why Jabil components can be found in more than 40% of today’s appliances, with more than 100 million assemblies shipped to date.
Jabil’s technology building blocks and reference designs empower the most advanced robotic vacuums, coffee makers, washing machines, dryers, refrigerators, ovens, cooktops, outdoor grills, fitness equipment, home security solutions, lighting systems and more. As such, Jabil helps customers leapfrog their time-to-market by six months while empowering savings of up to $1 million in product design iterations, prototypes and engineering changes.
Jabil (NYSE: JBL) is a manufacturing solutions provider with over 260,000 employees across 100 locations in 30 countries. The world’s leading brands rely on Jabil’s unmatched breadth and depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise. Driven by a common purpose, Jabil and its people are committed to making a positive impact on their local community and the environment. Visit www.jabil.com to learn more.