Industry: Consumer Goods
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP20566
The market is estimated to reach a valuation of US$1,200 Bn by the year 2033, at a CAGR of 7.8%, during the forecast period 2024-2033.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Home Appliances Market Size (2024) |
US$705 Bn |
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Market Size (2033) |
US$1,200 Bn |
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Forecast Growth Rate (CAGR 2024 to 2033) |
7.8% |
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Historical Growth Rate (CAGR 2019 to 2023) |
7% |
A home appliance refers to an electrical device predominantly utilized in domestic settings for functions such as cooking, cleaning, or food preservation.
Home appliances, commonly referred to as white goods, principally include refrigerators, air conditioners, dishwashers, clothes dryers, drying cabinets, freezers, kitchen stoves, water heaters, and washing machines.
Such home appliances can be obtained through a range of distribution channels, such as supermarkets, hypermarkets, speciality stores, e-commerce, and other outlets.
Smart household appliances are extensively utilized in residential settings due to their ability to enhance the efficiency of indoor tasks such as cooking, cleaning, and personal grooming.
Such compact kitchen gadgets greatly diminish the amount of time and effort needed for these activities.
Several electronic stores, including Walmart, Reliance Digital, and Croma, provide a diverse range of manual, semi-automatic, and automatic small household appliances.
Further, the global home appliances market is primarily driven by continuous innovation and technological advancements, driven by consumers' desire for convenience, effectiveness, and energy conservation.
To meet the evolving demands of consumers, producers in this sector focus on developing innovative functionalities, advanced technology, and sustainable solutions.
The growing urge of having smart home appliances among people is one of the major market trends driving the market forward.
Smart home appliances utilize cutting-edge technologies, including artificial intelligence, the IoT, touchless technology, and integrated smart home systems, to provide customers with numerous advantages, such as enhanced safety, heightened security, and increased convenience for their residences.
The increasing demand from tech-savvy consumers globally is driving the market expansion of smart home appliances, which have novel features and great potential for growth in the electronic appliances industry.
The global home appliances market witnessed significant growth during the historical period and witnessed a health growth rate of 7% from 2019 to 2022.
The anticipated proliferation of smart appliances in households is attributed to the rapid technological advancements and the prevalence of modern lifestyles.
The increasing popularity of technical devices and the expanding knowledge of the latest technologies are expected to drive the need for smart home equipment in the foreseeable future.
Increased Consumer Spending on White Goods
Home appliances help in various domestic operations, including but not limited to cooking, washing, and cleaning, as well as other tasks related to homemaking.
The increased demand for white goods, such as refrigerators, kitchen appliances, washing appliances, and heating & cooling appliances, can be attributed to the rise in disposable incomes, the growth of the world population, and the improvement of living standards.
The increasing purchasing power of customers in major emerging economies resulted in a high demand for such home appliances.
Further, the latest home appliances in the market, including refrigerators, washing machines, air-conditioners (AC), and culinary appliances, are costly and can only be purchased by individuals with a significant amount of discretionary cash.
Shifting Consumer Behavior in Line with Improving Standards of Living
Consumers who are knowledgeable about technology are prepared to make financial commitments towards smart home products that enhance their quality of life.
The rise in the number of internet users globally has shifted consumers' preferences towards using the latest and high-end technology, which has transformed the retail landscape of the global home appliances market.
The market value is estimated to be significantly boosted by the emergence of advanced technologies in smart and energy-efficient appliances.
Leading home appliance manufacturers prioritize the development of energy-efficient appliances with smart features to optimize energy conservation and offer sustainable solutions to consumers.
Shortage of Semiconductor Chip
The global chip shortage following the pandemic period caused huge supply-chain disruptions, leading to the shortage of semiconductor chips globally.
Microchips enable home appliances & products to possess crucial capabilities, such as establishing connections with other smart devices or home systems enabling consumers to remotely operate appliances using smartphones.
The global electronics industry faced severe supply chain challenges due to a scarcity of microchips in the global market, resulting from a surge in consumer electronics demand and affecting the global smart home appliances market size.
Evolutions of Wireless Technologies
With the evolution of wireless technologies, home appliance manufacturers can attract tech-savvy consumers by integrating such high-end technology into home appliances.
Bluetooth and Wi-Fi technology can be easily integrated with home appliances like air conditioners, television sets, refrigerators, and other household appliances, which are key attraction points to attract today's consumer base.
The development of a robust network infrastructure has led to the increased penetration of the internet which eventually creates opportunities for home appliances market players.
Consequently, consumers are increasingly selecting technologically advanced and wireless products due to the convenience they offer.
Opportunities for market growth are generated by the low cost of white product ownership, particularly in developing economies.
Furthermore, it is anticipated that the market demand will be stimulated by an increase in replacement sales in developed regions, which could be attributed to accelerated urbanization and the increasing per capita income.
Entertainment Appliances Dominate Sales Charts with 25% Market Share
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Market Segment by Product Type |
Market Value Share (2023) |
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Entertainment Appliances |
25% |
Based on product type, the global home appliances market is further segmented into entertainment appliances, refrigerators and cooking appliances, where entertainment appliances dominate with 25% of the market share.
The entertainment appliances segment is said to dominate the market owing to the recent technological advancements leading to the integration of entertainment and information functionalities into home appliances making the devices more versatile and appealing.
Further, the advent of the smart home ecosystem has increased the demand for interconnected home appliances, where entertainment appliances or devices play a crucial role.
Consumers are now seeking seamlessly integrated smart devices for their homes, that enable them to control and manage their devices through a single platform.
Nearly 60% of Market Revenue Comes from Offline Stores
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Market Segment by Type |
Market Value Share (2023) |
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Offline |
60% |
Based on sales channel segmentation, the home appliances market is further sub-segmented into online and offline sales channel, where the offline sales channel dominates the market with 60% of the total market share.
The dominance of the offline sales channel can be attributed to the growing consumer demand for small home appliances which can be easily catered by retail outlets, supermarkets and general stores.
Domestic appliance stores offer a diverse selection of household appliances, including electric kettles, cookers and furnaces, grills and roasters, and dishwashers.
The primary factors that are expected to drive the demand for home appliances are the immediate product offering, reliable communication with local suppliers, and effective aftermarket service.
Household appliance distributors implement supportive strategies to execute marketing campaigns for domestic suppliers.
Healthy relationships among suppliers, distributors, and consumers will facilitate market expansion in the offline sales channels.
Asia Pacific Remains in the Leading Position with More than 1/3rd Share
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Region |
Market Value Share (2023) |
|
Asia Pacific |
35% |
Asia Pacific region dominates the global home appliances market share with around 35% of the market share in 2023.
The growth of the Asia Pacific region can be attributed to the presence of emerging economies like India, China, and Japan, where the rising disposable income of people is rising.
The consumption value of home appliances is high in countries such as China, Japan, and India, which is reflected in the increased revenue generated by tiny domestic appliances in the region.
Additionally, the market is anticipated to expand due to the region's expanding middle-class population, and the increasing popularity of various kitchen appliances.
It is anticipated that the market will expand with an increase in the consumption of both major and minor household appliances.
Furthermore, it is anticipated that the market growth will be primarily attributed to the increasing production of appliances and the expansion of the industrial sectors in India, and China.
Europe’s Massive Installed Base Provides a Strong Impetus to Market Growth
Europe is estimated to dominate the global market owing to the increasing demand for energy-efficient electronic appliances in countries like the United Kingdom, France, and Italy.
The APPLIA Home Appliance Europe reports that European households registered around 8000 million home appliance installations in the year 2022.
The market here experiences additional development due to the increasing popularity of cooking activities.
Cutting-Edge Technology Trends Drive Growing Attractiveness of MEA
It is anticipated that the Middle East and Africa will experience the highest CAGR between 2023 and 2033 at 7.7%, owing to the increasing demand for i-wave microwave cookers.
The market demand will be stimulated by the growing trend in Saudi Arabia to embrace appliances with cordless technology and is anticipated that the market will expand during the forecast period due to the increasing popularity of roasters, coffee appliances, grills, and irons in South Africa.
Furthermore, the market is expected to experience growth due to the increasing demand for refrigerators with shelving constructed from tempered glass in Middle Eastern countries.
September 2023
Bosch Home Appliances Pvt Ltd., one of the leading names in the home appliances segment, introduced its new range of fully automatic washing machines to provide innovative solutions to enhance consumers’ life.
January 2023
Samsung introduced their new product series called customizable home appliances lineup, which includes a Bespoke AI oven and a wide range of Bespoke refrigerators, with customizable designs and the latest kitchen innovations seamlessly integrating with smart IoT system.
August 2022
Haier, a leading electronics manufacturer from China, signed a memorandum of understanding (MOU) with the Investment Authority of Egypt to construct a huge industrial complex in Egypt to manufacture home appliances valued at approximately US$130 million.
The major competitors in the home appliances market are primarily evaluated based on their product or service offerings, their financial statements, developments and the approaches implemented, the company's position in the global market scenario and its geographical reach.
Major home appliances companies are primarily focused on offering a diverse range of smart home appliances with advanced features along with personalized solutions and seamless integration to enhance user experience.
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Attributes |
Details |
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Forecast Period |
2024 - 2033 |
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Historical Data Available for |
2019 - 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Countries Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Product Type
By Sales Channel
By Region
To know more about delivery timeline for this report Contact Sales
The home appliances market is estimated to exhibit a CAGR of 7.8% during the next ten years.
Offline sales channel dominates the market share with 60% of the total market share.
Asia Pacific has the major market share with 35% of the global market.
The market will possibly reach a valuation of US$1200 billion in 2033.
Shifting consumer preferences towards using smart home appliances is the major market driving factor.
