Consumers aren’t connecting their smart appliances to the internet, and it’s a challenge for appliance makers

Francis Scialabba

· 3 min read

Smart homes are only as smart as the tech that occupies them. Whether it's a smart speaker, fridge, or garage-door opener, each device is reliant on a strong connection to the internet or the cloud.

However, some consumers are reportedly opting to not connect their internet-enabled devices at all.

According to a recent article from the Wall Street Journal, a conundrum is sprouting up for smart-home appliance manufacturers. Customers are using internet-enabled appliances without connecting them to the internet, frustrating manufacturers who might want to use data gathered from users and as a way to potentially drum up additional revenue through things like replacement parts and subscriptions.

Smart appliances could help manufacturers like LG, Samsung, and Whirlpool to "transform their businesses" from mostly one-time interactions to more long-term relationships with customers through subscriptions and interaction with internet-enabled products, per the WSJ.

"Smart appliances have always been at the tail end of adoption, since the smart home's inception. Most other smart-home devices have done well, because their value centers around their entertainment, or security and safety at home, or reducing household energy consumption or reducing household costs," Adam Wright, research manager for IDC's smart-home and office devices program, told Tech Brew. "The appliance market continues to still struggle to convey an added value to the consumer from that connectivity that's added to the device."

LG told the WSJ that "less than half of the smart appliances it has sold stay connected," while Whirlpool Corp. told the WSJ that "more than half of its smart appliances remain connected." A staggering 80%–90% of appliances sold by LG have smart features, according to the WSJ.

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Sheldon Lam, senior manager of Home Connect at Bosch, told Tech Brew in an email that encouraging people to adopt connected appliances into their homes starts with "educating them on how the technology can integrate seamlessly with other smart devices they are already using every day. "

Wright said that "added connectivity disproportionately benefits" the company, and vendors may need to do more to educate their consumer base.

"In the store, when somebody's browsing or looking for an appliance, I think they need to do more to provide more marketing and education and awareness of what that wi-fi is and what it can do for you. I also think that vendors need to do a better job engaging with the customer, after the customer has bought that machine," Wright said.

GE Appliances offers more than 650 connected appliances and accessories, Whitney Welch, senior manager of brand and product communications at GE Appliances, told Tech Brew in an email.

Welch told us that GE Appliances works to engage customers in connecting their products which include "over-the-air" updates, so features "aren't limited" to what was on the appliance when it was purchased.

In a similar vein to the smart-home interoperability standard Matter, the Home Connectivity Alliance released HCA Interface Specification 1.0 in January, aimed at establishing a standard for cloud-to-cloud compatibility and communication between long-life appliances, HVAC systems, and TVs, regardless of manufacturer, which could encourage customers to integrate smart appliances with the rest of their smart homes.

Tech Brew informs business leaders about the latest innovations, automation advances, policy shifts and more to help them make smart decisions.