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CES 2016
IBS/KBIS 2016
CES 2016
Key trends across home appliance industry
Product
Innovation betterment Innovation Innovation Innovation
Product upgradation
Innovation
Innovation
Innovation
Innovation
Product Enhancement
Innovation
Innovation
Innovation Innovation
Innovation
Innovation Innovation
Product advancement
Innovation Innovation Innovation Innovation Product improvement
Innovation
GE’s Keurig
Refrigerator with
Samsung’s LG’s Signature Refrigerator with transparent LG’s Door-in-Door Haier’s Refrigerator Hot Brewing
Family Hub Refrigerator display and ‘touch-free’ open door feature Refrigerator with full door display Dispenser @ IBS
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 5
© 2016 IHS - NOTE: Above are some examples and not all.
HA market witnessed very few new product/technology innovations
- Washing machines was another product segment where we saw few innovations, followed by cooking appliances
- Panasonic changing display unit was also very cool.
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 6
© 2016 IHS - NOTE: Above are some examples and not all.
#2. Most of the news and product launches on HA market centered around
introduction of a better product, with improved specifications, upgraded
model, advanced features and a contemporary ‘look & feel’.
Product
Innovation betterment Innovation Innovation Innovation Product upgradation
Innovation
More program
settings More functions
More energy
efficient
Innovation
Innovation
Innovation
Product Enhancement
Less More
vibrating spacious
Innovation
Wi-Fi Less noisy
Connected Better integrated
Product
Innovation advancement Innovation Innovation Innovation Product improvement
Innovation
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 7
© 2016 IHS - NOTE: Above are some examples and not all.
2a. We saw some cool examples of product enhancements focusing on
specific consumer needs/pain-points.
- This specifies the need to continuously engage with end- consumers
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 8
© 2016 IHS - NOTE: Above are some examples and not all.
2b. Companies are experimenting with new materials & technologies.
- Introduction of steel and aluminum interiors,including‘blacksteel’;
- Return use of glass for fridge shelves replacing plastics;
- Use of touch on metal technology, more led lighting interiors, led display on front metal panel
Fridge with steel and Fridge with glass shelves, Fridge with steel & glass
aluminium interiors replacing plastic interiors interiors
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 9
© 2016 IHS - NOTE: Above are some examples and not all.
2c More displays and larger displays are now being used in HA. (1/4)
- Displays are getting larger and even multi – colored, mainly within laundry appliances
- Some displays with touch controls appearing either on front panel or at back panel as well as on knobs too.
Examples showing more and more use of display technology across laundry appliances - of various shapes, sizes, formats and across locations.
Some with touch controls, some even on central knob (e.g. bottom right corner)
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 10
© 2016 IHS - NOTE: Above are some examples and not all.
(2/4)
…arobustgrowthalso within cooking appliances with displays of various shapes, sizes and at different locations,
including induction ceramic cooker-tops.
Variety of display formats being used across large cooking appliance, including induction based ceramic cooker-tops
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 11
© 2016 IHS - NOTE: Above are some examples and not all.
(3/4)
…andalsoincrease in use of displays within cooling appliances segment - on the fridge door (fully or partly), water
dispenser area, and also inside the fridge.
Refrigeration appliances showed lots of potential growth in use of displays with/without touch control. This includes inside of fridge as well.
At CES 2016, Samsung launched it largest 21.7inch display on ‘Family Hub’ Refrigerator; LG with a transparent display which makes inside visible
without opening fridge by going nearer. Use of display also increases across room air-conditioners segment.
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 12
© 2016 IHS - NOTE: Above are some examples and not all.
(4/4)
…andusagefurtherextendingtowiderangeofsmall home kitchen appliances.
Popularity of display technology was also seen amongst wide range of small home kitchen appliances
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 13
© 2016 IHS - NOTE: Above are some examples and not all.
2d. An increase in use of touch control technology, including on displays.
- Touch on metal is the recent innovation in this space.
Growth is expected in use of touch control technology, especially amongst large cooking appliances, including induction based ceramic cooker-
tops due to many advantages
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 14
© 2016 IHS - NOTE: Above are some examples and not all.
2e. Increased focus is given towards the ‘Face of the Appliance’ by
enhancing its ‘Look and Feel’ to match ones kitchen décor and lifestyle.
- IBS section later in this report provides more examples of developments in this space
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 15
© 2016 IHS - NOTE: Above are some examples and not all.
#3. However, more positive news was that many companies who had being
presenting some innovation concepts since last 2-3 years appeared more
confident this year – some even announcing new product launches in 2016.
Launching soon Launching soon
“Now launching”
Innovation Innovation Innovation Innovation
Product Enhancement
Innovation
Innovation
Innovation
Smart air-conditioners in Washing machines already
Summer 2016 in production
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 17
© 2016 IHS - NOTE: Above are some examples and not all.
… and looking beyond white-goods, we even have connected air-fresheners
which could release fragrance/s of your choice whenever you want
For example, when you are arriving home from office
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 18
© 2016 IHS - NOTE: Above are some examples and not all.
#5. Evolving themselves, many HA companies were not only seen to be
marketing their connected appliances but also extending their offering
covering ‘Smart Home Solutions’ connecting wider range of home devices.
Connectivity
Innovation Innovation Innovation Innovation Connectivity
Innovation
Innovation
Innovation
Innovation
Innovation
Innovation
Innovation Innovation
Innovation
Innovation Innovation
Connectivity
Innovation Innovation Innovation Innovation Connectivity
Innovation
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 20
© 2016 IHS - NOTE: Above are some examples and not all.
#6. Saying so, there were companies who stayed focused and designed
products addressing some key consumer ‘pain-points’, rather than just
embedding connectivity modules in their appliances
Example:
Whirlpool ‘Easy Fridge’optimiseseveryinchof
space available & also making it easy to access:
- Part-sliding shelves – central area only
- Easy adjustable shelf heights
- 3-4 layers of storage in the bottom area
- Well-thought of compartmentalisation, storing various
type of food items available in various shapes and sizes
of containers/boxes (even loose).
- Provides adequate lighting internally as well.
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 21
© 2016 IHS - NOTE: Above are some examples and not all.
#7. As market is getting too competitive at lower/medium end, many HA
makers are also focusing on premium/super-premium segment.
- Many HA makers launched their premium appliance suite / extended ranges.
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 22
© 2016 IHS - NOTE: Above are some examples and not all.
#8. To increase global footprint, Chinese companies are getting aggressive
in the HA market and also broader consumer electronics market.
- Haier Group is gearing up to be the next consumer electronics giant, similar to Samsung & LGE.
to Smartphones …to Smartwatches …to Smart TVs …to Robots and even Robotic manufacturing
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 23
© 2016 IHS - NOTE: Above are some examples and not all.
…
Even Hisense, another Chinese company, is very aggressively launching products across consumer appliance segments,
including having its own range of Smart Home Solutions.
CES 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 24
© 2016 IHS - NOTE: Above are some examples and not all.
CES 2016 – To summarise key market trends
IHS’analysis of the recent home appliance market trends based on CES 2016
1)Level of excitement at CES 2016 was much higher due to new segments - Automobiles, AI, VR, Robotics
o Appliance market did not witness any ‘ground-breaking’ innovations, but only few ‘notsonew’innovations
2) Most of the home appliance news and product launches centered around product enhancement
o Companies mainly focused on product improvisation, improvised specifications, adding advanced features
o Companies were also see experimenting with new materials & technologies
o More use of display technology, especially amongst laundry, cooking and refrigeration appliances
o An increase in use of touch and sensor technology, including touch on displays
o Increased focus towards enhancing the ‘Face of the Appliance’withnew,freshandcontemporary‘Lookand Feel’.
3)Positively, many companies who had being presenting some innovation concepts since last 2-3 years
appeared more confident, willing to launch them soon.
4) Connectivity was becoming a standard feature offered across most product segments.
5)Evolving themselves many appliance makers extended their offering with ‘Smart Home Solutions’
6)Beyond connectivity, some companies stayed focused and designed products addressing key
consumer ‘pain-points’.
7)As market get competitive at lower end, HA makers started to focus more on premium segment.
8)Chinese appliance makers are getting me innovative and very aggressive, in order to increase
their footprint across global market
o Some like Haier & Hisense are gearing to be the next consumer electronics giants expanding their product portfolio
CES 2016 HA Trends: February 2016 25
© 2016 IHS
CES 2016 - Market Impact
…..IHS’perspectiveonthehomeappliancemarket
1) Connectivity now becoming a standard offering is expected to boost the growth of HA market
o Penetration of smart connected appliances is set to increase to nearly 50% by 2020 - on a conservative basis
o Byendof2016,allthosecompanieswhohavebeingsittingonfencewouldlaunchtheir‘connected’appliances
2)However it will be easier to sell ‘smart’ appliances which are not connected, but one may not be
able to sell ‘connected’ appliances which are not smart, intelligent & efficient.
3)Connected appliances would also provide boost to its allied electronic/components industry
o More use of displays, touch controls & sensor technology would increase the average semiconductor content
4)Home appliance market would continue to consolidate with mergers & acquisitions, technology tie-
up, partnerships, collaboration across allied businesses offering integrated services (e.g. utility companies)
o To drive innovation, tying up with ‘start-ups’ could to be the next ‘IN’ thing.
o To drive market share, we expect M&A activity to get aggressive within small & personal care appliance sector
• PostHaier’splannedacquisitionofGEappliances,therewouldbelessmajorappliancecompaniesouttheretoacquire.
5)Industry needs more/new regulations including those addressing data sharing/privacy concerns
o The standards of energy efficiency would be set even higher than current giving reason to continuously innovate
o Some of below concerns if remain unaddressed would slowdown the pace of growth in HA market
• Interoperability, data privacy, data hacking issues, after sales service, back-office support, providing technical know-how,
andnowthelatestbeing‘ProductRecalls’and‘Building&MaintainingTrustamongstconsumers
7)Product development islikelytobedictatednowbyconsumersneedsratherthanengineers’need.
8)It is more likely to be ‘Technology driving consumer demand than vice-versa’ - similar to mobile market
CES 2016 HA Trends: February 2016 26
© 2016 IHS
IHS’ Big Questions
Some key questions we needs answers to
1. Why at CES, a technology launch platform, home appliance market was seen as thirsting for some
‘ground-breaking’ innovations?
Tosurvive,homeappliancemarketneedsachangeofpaceaswestartselling‘technology’product&services
Appliance makers need to start building software capabilities which are as important as hardware components
Tie-upwith‘start-ups’couldbecomeagoodstrategicoption,inordertoinnovatecontinuouslyandfaster
2. Surprisingly, why companies are still launching new models without ‘connectivity’ feature,
especially premium range appliances, some even costing around $2,000?
• What if, consumer buying appliances having lifespan of 10-20 years may not need or understand the benefits of
connectivity now, but may find the product obsolete in next 2-3 years.
• Technology changing rapidly and appliances live for long. How are we bridging this product and technology gap.
• Companies have to play an important role of providing a long term solution, and make consumer think long-term
3. Why have companies become less vocal about energy-efficiency, a key market driver for growth?
4. And while there were talks of providing whole range of smart home solutions, there is still less
discussions on interoperability, data security, post-sales technology support?
5. What next after a consumer buys aconnectedappliance‘product’?
• Are appliance makers ready to play a new role of a service provider, content provider and so on?
© 2016 IHS
IHS’ Key Takeaways
Availability Availability
Availability
Availability
Availability Availability
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 30
© 2016 IHS
IBS 2016 focused on demonstrations, display of full range, discussing
delivery schedules, logistics, order quantities, cut sizes availability.
- Large cooking and refrigeration appliances were product categories of key focus at KBIS/IBS 2016
Product Demonstrations
Availability Availability Availability
Showcasing the whole range
Availability
Availability Availability
Availability
Product comparisons Product benefits
Availability
Displays
Availability the kitchen concept Availability Availability Actual ‘LookAvailability
& Feel’
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 31
© 2016 IHS
For trade partners/visitors experiencing the real ‘Look & Feel’ was important
- Looking at the display set-up of the entire kitchen or full range of consumer appliances, or to actually look and feel the
materials being used, internally as well as externally.
Below are examples of wide range of materials and panels used for in-built appliances
Contemporary finish
Displaying closed and open units of full kitchen Closed and open units of storage cabinets Wood finish display - Closed & open refrigerator unit
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 32
© 2016 IHS - NOTE: Above are some examples and not all.
For trade partners/visitors experiencing the real ‘Look & Feel’ was important
Below are examples how appliances are displayed, with some demonstrating their usage; some new sleek designs
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 33
© 2016 IHS - NOTE: Above are some examples and not all.
Wine chillers were the new favourites amongst refrigeration appliances.
- Companies showcased wide range of refrigeration appliances of different capacities, available in various exterior and
interior designs/materials, under and over the counters, built-in types, etc.
Below are some examples of wide range of wine chillers at display. Wine chillers are getting popular across regions
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 34
© 2016 IHS - NOTE: Above are some examples and not all.
Wine chillers were the new favourites amongst refrigeration appliances.
Below are some examples of refrigerators displayed – each showcasing different material used internally as well as
externally, shelving and other differential offerings from that of competition.
GE’s Keurig
REF with Hot
Dispenser
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 35
© 2016 IHS - NOTE: Above are some examples and not all.
Cooking ranges & ovens of various colors, designs & sizes were displayed
- To promote induction cooking, companies were not only showcasing various options but also explaining the benefits of
using induction cooker-tops
Cooking Appliances
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 36
© 2016 IHS - NOTE: Above are some examples and not all.
Due to popularity of gas cookers, emphasis was given to ‘burner technology’
- Companies were explaining about its enhanced heating power, how much gas it would save, how fast it would cook and
how it is better than others
Burner Technology
IBS/KBIS 2016 HA Trends: February 2016 Pic courtesy: CES 2016/IBS 2016/KBIS 2016 & company websites 37
© 2016 IHS - NOTE: Above are some examples and not all.
IBS/KBIS 2016 – To summarise market trends
IHS’analysis of the current home appliance market trends based on IBS/KBIS 2016
1)IBS 2016 was all about ‘Design and Re-engineering’, emphasizing more on ‘What’s in for now’ in
their offering unlike CES shows which are all about innovations and technologies of the future.
2)Exhibitors at IBS 2016 focused on product demonstrations, displaying full range, discussing
delivery schedules, logistics, order quantities and cut sizes availability.
o At IBS 2016 all was about installing the latest available range for their houses, properties and kitchens
3)For trade partners/visitors experiencing the real ‘Look & Feel’was very important
o Looking at the display set-up of the entire kitchen or full range of consumer appliances, or to actually look and feel
the materials being used, internally as well as externally, matching consumers kitchen décor and their lifestyle.
4) Large cooking and refrigeration appliances were product categories which gained greater
attention at KBIS/IBS 2016
o Companies showcased wide range of refrigeration appliances, especially wine chillers of different capacities,
available in various exterior and interior designs/materials, under and over the counters, built-in types, etc.
o Cooking ranges & ovens of various colors, designs & sizes were displayed
o To promote induction cooking, companies were not only showcasing various options but also explaining the benefits
of using induction cooker-tops.
o Duetopopularityofcookingongas,lotsofemphasiswasgiventothe‘burnertechnology’,explainingitsenhanced
heating power, amount of gas it would save, how fast it would cook and how it is better than others
5) Companies were paying lots of attention to this very key ‘builders segment’ of the home appliance market.
© 2016 IHS 40