Korean smart appliances market to grow sharply in next 5 years

The global market for smart home appliances is forecast to grow by more than twofold annually over the next five years, buoyed by advancement in the Internet-of-Things (IoT) technology, a report said Tuesday.

Production of consumer electronics, whose functions will be connected to other mobile devices, is estimated to reach an annual 223 million units by 2020, up an average of 134 percent each year from the current output of around 1 million units, according to market tracker IHS.

Given that the forecast is only based on white goods, the figure could soar to as many as 700 million units by that time if it includes smaller products like rice cookers, air purifiers and microwaves, it added.

The outlook came as household appliance makers around the world are pushing for the adoption of IoT technology -- a concept of interconnection between smart devices -- into their products as it has emerged as a fresh growth driver.

Samsung Electronics Co., South Korea's tech giant, has pledged to make all of its consumer electronics items support the IoT function. In August last year, it bought SmartThings Inc., a U.S. platform operator as part of a push into the new mobile software business.

It also began to sell products that are preinstalled with its own operating system Tizen in a bid to bolster its market presence.

LG Electronics Inc., Samsung's domestic rival, has rolled out a similar IoT-based service, HomeChat, which offers customers remote access to control their home appliances via mobile messengers.

The competition to gain an edge in the smart home appliance market is expected to get fiercer as only a few brands will likely survive in the next two or three years, the report said.