According to Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates, broadband connectivity creates a channel for control and management applications. Broadband connectivity enables cloud services like real-time feedback or automated controls.
Devices connected to the Internet are able to pass on the computing power from devices to central servers where analytics can provide solutions at a small cost premium. Both broadband and the cloud allow solutions to use existing displays such as smartphones, connected TVs, or tablets to interface with connected devices in the home. Using existing screens in the home instead of a dedicated display also lowers hardware costs and allows for faster product development cycles.
Global appliance manufacturers LG and Samsung have launched Wi-Fi-enabled appliances, while European manufacturers are taking a guarded approach to connected appliances. Instead of moving forward alone, product managers in Europe are closely watching the industry and are prepared to follow others into the market. European OEMs are finding partners and platforms that will provide broader capabilities in the long term.
Connected appliances can provide services that respond to demand and price fluctuations and extend benefits to the owners, the manufacturers, and utilities. OEMs can also create value-added features to products, such as personalized services that recommend other features, software upgrades, and customer care services. They can also offer e-commerce services, offering extended warranties, accessory recommendations, and targeted promotions.
These offerings will provide differentiation to connected products, but in the long term, consumers will not find much use for products that do not interoperate with the other products in their home. As consumers acquire more connected products, interoperability must be prioritized.
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