Household Appliances Market Definition
The household appliances market consists of sales of household appliances by entities (organizations, sole traders and partnerships) that produce household appliances such as electric housewares, washing machines and major household appliances. The household appliances industry comprises businesses that manufacture and sell household appliances such as microwave ovens, blenders, mixers and coffee/tea makers to end users for their personal use or domestic purposes.
Household Appliances Market Size
The global household appliances market reached a value of nearly $ 307.6 billion in 2019, having grown at a compound annual growth rate (CAGR) of 6.9% since 2015, and is expected to grow at a CAGR of 8.9% to nearly $433.4 billion by 2023.
Growth in the historic period resulted from increasing hygiene and health awareness, and technological advances. Factors that negatively affected growth in the historic period were increased tariffs on raw materials, and growing environmental concerns.
Going forward, surging demand for microwavable foods, rising trend of cookouts, and rising waste generation will drive growth. Factors that could hinder the growth of the household appliances market in the future include growth in online on demand laundry services, and high cost of waste disposal units.
Household Appliances Market Drivers
The key drivers of the household appliances market include:
Surging Demand For Microwavable Foods
The rising demand for frozen and ready-to-eat food is expected to contribute to the growth of the household appliances market in the forecast period. The fast-paced life style of individuals combined with the increasing preference for convenience, boosted the demand for microwavable foods globally. Microwavable foods such as frozen meals and soups require minimal cooking time and provide high nutritional benefit as they are involve little added fat. Other factors such as globalization, rising female workforce and increasing disposable income will also drive the market for microwavable foods. The global market for microwavable foods is expected to grow from $104.6 billion in 2017 to $142.4 billion in 2024. All these factors will boost the market for microwave ovens, which in turn will drive the market for household appliances in the forecast period.
Household Appliances Market Restraints
The key restraints on the household appliances market include:
Growth In Online On Demand Laundry Services
Increasing demand for online on demand laundry services is expected to restrain the market for household washing machines in the forecast period. The on demand laundry services market is expected to be aided by stable economic growth forecast in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global real GDP growth will be 3.7% over 2019 and 2020, and 3.6% from 2021 to 2023. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, China is forecast to register GDP growth of 6.2% in 2019. Stable economic growth, increasing internet penetration, and rising disposable income coupled with hectic lifestyle of individuals will lead to an increase in on demand laundry services, thereby decreasing the market for household washing machines.
Household Appliances Market Trends
Major trends influencing the household appliances market include:
Growing Popularity Of Smart Home Appliances
The growing popularity of smart home appliances is a major trend in the market. Smart home appliances are devices which are connected to other devices via the internet, and other technologies such as Bluetooth, near field communication (NFC) and Wi-Fi. The increased popularity of smart appliances can be attributed to the increased demand for smart homes, the rise in internet and smartphone penetration, and energy efficiency initiatives. The rise of the Internet of Things (IoT) technology also supports the development of smart appliances. Smart appliances are generally more energy-efficient than their traditional counterparts. Currently, various product categories such as washing machines, refrigerators, microwave ovens, and coffee machines are available with smart and connected features. Owing to the growth in the demand for smart home appliances, traditional appliance makers such as Whirlpool, Electrolux, GE Appliances, Miele, and BSH have acquired significant capabilities and experience in the smart appliance segment. In addition, technology companies such as Apple, Google, Microsoft, Intel, Xiaomi, and Cisco, which are not known for producing appliances, are also entering this segment. The global market for smart home appliances was estimated at about $32 billion in 2018 and is growing rapidly , supporting the overall household appliances market.
Premiumization Of Household Appliances
Household appliance manufacturers are increasingly offering premium appliances to cater to the growing demand for these product categories and increase revenues. This can be attributed to the changes in consumer lifestyles and increased consumer preference for high-quality luxury products. Premium appliances mainly focus on focus on the aesthetics and color of the products, use premium quality materials such as metals and glass, and offer an enhanced consumer experience at a premium price. Examples of premium appliances include side-by-side four-door refrigerators, twin washing machines, wine conditioners, coffee machines, steam ovens and kitchen hobs. High net-worth individuals (HNIs) as well as and young upper-middle-class populations with high disposable incomes are the major consumers of premium household appliances. Global manufacturers such as LG Electronics, Philips, Samsung Electronics, Miele, Siemens, are Panasonic have launched a range of premium appliances in the market. Samsung, for example, launched the Chef Collection line-up of premium kitchen appliances in 2014. The line’s refrigerator sells for about 8 million won ($7,054) in South Korea, up to four times the price of other fridges in the market. LG Electronics unveiled its LG Signature line-up of premium home appliances in 2016. It is estimated that LG Electronics spent about $7 billion on research and development of premium products in 2018.
Opportunities And Recommendations In The Household Appliances Market
Opportunities – The top opportunities in the household appliances market will arise in the small electrical appliances market segment, which will gain $91.6 billion of global annual sales by 2023. The household appliances market size will gain the most in China at $39.84 billion. Market-trend-based strategies for the trailers market include developing smart appliances, offering premium products to target high income consumers, and focusing on developing energy-efficient products to comply with the regulatory standards and reduce environmental footprint of the products. The major player adopted strategies include expanding global foot print through mergers and acquisitions, increasing production capacity by building new plants, and developing high-quality products through research and development (R&D) activities.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the household appliances companies to launch energy efficient appliances, provide competitively priced offerings in low-income countries to reach new users and offer outsource activities to low-cost countries to save costs.
Household Appliances Market Segmentation
The household appliances market is segmented by type of appliance and by geography.
By Type Of Appliance-
The household appliances market can be segmented by type of appliance
- a) Small Electrical Appliances
- b) Household Cooking Appliances
- c) Household Refrigerators And Home Freezers
- d) Household Laundry Equipment
- e) Other Major Household Appliances
The small electrical appliances market was the largest segment of the household appliances market in 2019 at 59.3%. The household laundry equipment market is expected to be the fastest-growing segment going forward at a CAGR of 11.8%.
By Geography–
The household appliances market is segmented into
o North America
o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- Denmark
- Switzerland
- Ireland
- Sweden
- Netherlands
- Austria
- Belgium
- Portugal
- Norway
- Finland
o Asia Pacific
- China
- Japan
- India
- Australia
- Philippines
- Vietnam
- Indonesia
- Malaysia
- New Zealand
- Hong Kong
- Singapore
- South Korea
- Thailand
o Eastern Europe
- Poland
- Russia
- Romania
- Czech Republic
o South America
- Peru
- Argentina
- Chile
- Brazil
- Colombia
- Venezuela
o Middle East
- Saudi Arabia
- UAE
- Turkey
- Israel
o Africa
- Nigeria
- Egypt
- South Africa
Asia-Pacific was the largest market for household appliances market, accounting for 45.1% of the global market in 2019. It was followed by Western Europe, North America, and then the other regions. Going forward, the fastest growing regions in the household appliances market will be the Middle East, and Africa, where growth will be at CAGRs of 22.9% and 14.0% respectively. These will be followed by the Eastern Europe, and Asia-Pacific where the market is expected to grow at CAGRs of 9.8% and 8.8% respectively.
Household Appliances Competitive Landscape
Major Competitors are:
- • Whirlpool Corporation
- • Haier Smart Home Co., Ltd. (Qingdao Haier Co., Ltd.)
- • Robert Bosch GmbH
- • Midea Group Co., Ltd.
- • LG Electronics Inc.
Other Competitors Include:
- • Godrej
- • IFB
- • Voltas
- • Hitachi
- • Blue Star
- • Midea Group
- • GREE
- • Galanz
- • Chang Hong
- • Hisense
- • Skyworth
- • Mitsubishi
- • ASKO
- • Liebherr
- • SMEG
- • Miele
- • Daikin
- • Electrodomesticos Taurus SL
- • Cata Electrodomesticos SL
- • Edesa Industrial
- • KTD GROUP
- • Aisberg Company
- • Philips
- • Spectrum Brands Legacy Inc
- • Camco Inc
- • Danby Products Limited
- • TFI Food Equipment Solutions
- • Onward Manufacturing Company Limited
- • Viking Range
- • Amica Group
- • Zahran Holding Company
- • Elaraby Group
- • Unionaire Group
- • Tragen
- • Nafea Group
- • PASSAP Home Appliances
- • QASA
- • Polystar
- • Sharp
- • Fareast Mercantile Co Ltd
- • PZ Cussons Nigeria Plc