Quick Take: We think highly of the Pike Research team, but we find ourselves at odds with their latest optimistic predictions about smart appliances, which you can read about in the story below. They correctly state that "the market for smart appliances has not developed as quickly as anticipated." They incorrectly (in our view) attribute the slow growth to a shortage of smart appliances while predicting that sales will soon pick up.

Although there aren't a lot of smart appliances on the market now or many types to choose from, a recent report from Pike Research says the market for those appliances will boom from $613 million in 2012 to $34.9 billion in 2020. The cleantech markets firm notes that as utilities install smart meters throughout the world, smart appliances have a "significant role to play" in achieving the efficiencies and grid optimization we expect to see in the smart grid.

"The market for smart appliances has not developed as quickly as anticipated, due primarily to the fact that there are very few smart appliances commercially available," said Pike senior research analyst Bob Lockhart. "In order for this market to flourish, there needs to be a wider selection of appliances by type, by brand and by price range. In addition, it will take time and education to bring smart appliances awareness and interest to the forefront of consumers' minds."

The report identifies smart plugs as an "interim technology" that could help generate more awareness of smart appliances. The plugs work as sensors for conventional appliances and electronics, allowing consumers to manage their power consumption from plug-equipped outlets. As Pike puts it: the number of appliances available is low and prices are high – smart plugs may be the ticket to give consumers a way to save money while becoming more familiar with smart household technologies and benefits.

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.

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