The global home appliances market size was valued at USD 675.59 billion in 2022 and is projected to grow to USD 987.35 billion by 2029, exhibiting a CAGR of 5.57% during the forecast period. Growing demand for improving the lifestyle of individuals and high spending per capita income is expected to propel market growth. Growing demand for house appliances in North America and Europe is expected to impel the market course. The increasing population and the trend of urbanization are set to assist in market development. Fortune Business Insights™ shares this information in its report titled “Home Appliances Market, 2023-2029.”
List of Key Players Profiled in the Home Appliances Market Report:
- Koninklijke Philips N.V. (South Korea)
- IFB Appliances (India)
- KENT (India)
- Eureka Forbes Ltd. (India)
- Panasonic Holdings Corporation (Japan)
- Orient Electric (India)
- Whirlpool Corporation (U.S.)
- Samsung Electronics Co. Ltd. (South Korea)
- Haier Inc. (China)
- Bajaj Electricals Ltd (India)
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market’s key players.
Drivers and Restraints
Increasing Disposable Incomes to Progress Market Development
Increasing spending by consumers and increasing disposable income amongst the population are anticipated to drive the home appliances market growth. Major manufacturers have been focused on efficient appliances that are highly focused on saving energy and maximizing energy. Shifts in new technology and demand toward environment-friendly products are set to propel market growth. In February 2021, Panasonic Holdings Corp. announced its expansion of AI-enabled appliances, including connected refrigerators, air conditioners, and washing machines in India.
However, a shortage of semiconductor chips is expected to hamper the market growth.
Factors Affecting the Growth of the Home Appliances Market:
- Technological advancements: Advancements in technology play a significant role in driving the growth of the home appliances market. As new technologies emerge, consumers are attracted to innovative features and improved functionalities in home appliances. This includes smart appliances with connectivity options, energy-efficient models, advanced sensors, and automation capabilities.
- Changing consumer lifestyles: Changing lifestyles and increasing disposable incomes have a direct impact on the growth of the home appliances market. As people seek convenience and time-saving solutions, the demand for appliances like washing machines, dishwashers, microwaves, and robotic vacuum cleaners increases. Additionally, the trend of modular kitchens and the desire for aesthetically pleasing appliances also drive market growth.
- Urbanization and population growth: The rapid pace of urbanization and population growth contribute to the expansion of the home appliances market. In urban areas, there is a higher demand for appliances due to smaller living spaces and a busy lifestyle. Furthermore, the growing middle-class population in emerging economies also drives market growth as more households can afford home appliances.
- Energy efficiency and sustainability: With increasing environmental concerns, energy efficiency and sustainability have become crucial factors in consumers’ purchasing decisions. Energy-efficient appliances not only help reduce utility bills but also have a positive environmental impact. Governments and regulatory bodies across the globe are implementing energy efficiency standards, which further drive the demand for eco-friendly home appliances.
- E-commerce and online retail: The rise of e-commerce and online retail platforms has revolutionized the home appliances market. Consumers now have access to a wide range of products, competitive prices, and convenient delivery options. Online platforms provide a platform for manufacturers and retailers to reach a larger customer base, driving market growth.
- Replacement and upgrade cycles: The replacement and upgrade cycles of home appliances also contribute to market growth. As appliances age or become outdated, consumers tend to replace them with newer models featuring advanced technologies or improved energy efficiency. Additionally, lifestyle changes, such as moving to a new house or renovating, often prompt consumers to upgrade their appliances.
- Government initiatives and incentives: Government initiatives and incentives aimed at promoting energy efficiency and sustainable practices can significantly impact the home appliances market. These may include tax benefits, subsidies, rebates, and awareness campaigns encouraging consumers to opt for energy-efficient appliances. Such initiatives create a favorable environment for market growth.
- After-sales services and warranties: The availability of reliable after-sales services and warranties also influences the growth of the home appliances market. Consumers are more likely to purchase appliances from manufacturers or retailers that offer comprehensive after-sales support, including maintenance, repairs, and extended warranties. This instills confidence in consumers and encourages them to invest in home appliances.
Smart Home Appliances to be the Prime Part Due to Digitalization
On the basis of type, the market is divided into major appliances, small appliances, and smart home appliances. The smart home appliances segment holds the largest part in the type segment with spacious houses, increasing levels of disposable income, and affordability. Increasing digitalization and recent trends for smart homes globally are set to gain market share.
Specialty Stores to Dictate Due to Various Discounts Offered to Customers
Based on distribution channel, the market is categorized into supermarkets & hypermarkets, specialty stores, online/e-commerce, and others. The specialty stores segment is anticipated to dominate the market accounting for more than 45% in terms of sales as they offer various discounts and codes to consumers. The online/e-commerce segment is also set to grow at a fast pace due to easy shipping & exchange, change in the lifestyle of customers, and financial availabilities.
North America to Lead the Market Share Due to High Spending by Consumers
North America is expected to have the largest part of the home appliances market share due to the high spending of consumers. The market stood at USD 209.7 billion in 2021 due to high demand from countries such as Canada and the U.S., thereby increasing the adoption and consumption rate of smart devices. High efficiency, enhanced design, and insulated appliances are expected to gain traction in the market growth of the region.
Asia Pacific is expected to have a considerable substantial growth in the forecast period due to increasing demand for energy-efficient appliances. Growing demand from countries such as India and China is set to increase the demand for such appliances.
The increasing number of construction activities in Western European countries has led to an increasing adoption rate of such appliances. Demand for innovative products and the popularity of advanced appliances are anticipated to pose opportunities for market growth.
Technological Innovations by Key Players to Drive Market Progression
The market has various players who focus on new brands, product launches, and partnerships. Manufacturers have been focusing on development of innovative products for increasing their customer base for more revenue generation. In May 2022, Hisense launched its new range of smart home appliances, which are Wi-Fi enabled in the Middle East. In February 2022, Crompton Greaves Consumer Electricals announced the acquisition of a small household appliances manufacturer, Butterfly Gandhimath Appliances Ltd. to support its small domestic appliances category.
Key Industry Development
- August 2022- Maytag launched its new laundry washer-dryer system, which is designed for the removal of towels, blankets, clothes, and other household fabric items of pet hair. Maytag is a brand of Whirlpool.