Home Appliances Market By Product (Refrigerator, Air Conditioner & Heater, Washing Machine, Microwave & Oven, and Others), Application (Kitchen Appliances, House Maintenance, Entertainment, Cleaning, Others) Distribution Channel (Offline and Online), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 – 2032
Market Perspective
The global Home Appliances Market was valued at USD 490.7 billion in 2022 and is expected to maintain a steady growth rate. By 2032, the market size is anticipated to reach USD 778 billion, reflecting a Compound Annual Growth Rate (CAGR) of 4.7% during the period 2023-2032.
The demand for home appliance products is increasing, driven by consumers' desire for greater comfort in housekeeping and a shift towards energy-efficient and environmentally friendly appliances. The market is benefiting from the advancement in technology, growth in the housing sector, and favorable energy-efficient appliance initiatives by governments in advanced economies. Despite the market's growth potential, high procurement costs and regular maintenance requirements continue to pose challenges. However, the home appliances market is expected to witness significant growth during the forecast period, propelled by increasing urbanization and a developing economy.
The market is being propelled by attractive offers from online sellers, innovative products with artificial intelligence, and significant investments in research and development. Moreover, customers are looking for appliances that can perform multiple tasks with minimal resources, which has led to increased demand for advanced home appliances. With rising purchasing power and disposable income, customers are gradually increasing their spending on home appliances. This has increased the demand for advanced home appliances and led to increased vendor investments in innovative products and technologies, positively impacting the home appliances market growth.
The market's growth is also attributed to a wide range of products and brands, as well as special discounts and sales guidance in stores, which facilitate the purchase and installation process for consumers. Additionally, environmental concerns about pollution and global warming have led to the development of energy-efficient appliances.
Key Insights
- Based on the product, the refrigerator segment held the largest market share
- Based on application, the kitchen appliances segment generated the highest revenue
- By distribution channel, offline segments are expected to dominate over the forecast period
- On the basis of region, North America accounted for the largest market share
Growing Trend Towards Smart Functionality and Stylish Design of Home Appliances Augments the Market Growth
The market has been revolutionized by the increasing availability of aesthetically advanced products and the growing popularity of reality TV shows. The introduction of new shapes, sizes, and features with greater ease of use is expected to drive market growth. Additionally, the increasing number of hotels and restaurants and state and union cleanliness and hygiene regulations are important factors driving the home appliances market share.
The growing consumer preference for e-commerce and the desire to improve the visual appearance of Kitchen Appliances have expanded the market's growth potential. The introduction of modular and energy-efficient home appliances, such as induction cookers, pressure cookers, and warming boxes, is also fueling the home appliances market revenue. The market has witnessed new trends in sustainability and energy efficiency, which simplify many kitchen appliances tasks and support changing consumer demand.
High-quality materials and aesthetically pleasing design, combined with innovative and versatile features, offer significant opportunities for market growth. Additionally, the increase in the number of retail channels creates new opportunities for the home appliances market during the forecast period.
Technological Advancements are Propelling the Home Appliances Market
The home appliances market is witnessing growth owing to the increasing adoption of technologically advanced devices that offer better performance while consuming less energy. Additionally, the demand for various advanced home appliances is increasing due to rising consumer spending on kitchen appliances. The availability of many brands and products in supermarkets and other retail formats is also contributing significantly to the market's growth.
The growth potential for the home appliances market is expected to be boosted by the increasing number of e-commerce retailers and the development of next-generation devices that offer increased consumer convenience, connectivity, and energy-saving features. The ongoing rural electrification projects also present stable growth prospects for long-term profitable entry into the home appliances sector.
The demand for smart appliances is rising due to their advanced features and energy efficiency. The accelerating need for convenience encourages consumers to upgrade their current devices to smarter versions, which is expected to drive market growth. The introduction of wireless technologies, such as Bluetooth and Wi-Fi, running on smartphones and tablets, is creating lucrative opportunities for major players to strengthen their position. Additionally, the use of artificial intelligence (AI) and machine learning can improve efficiency, automate tasks, and reduce human interaction in various processes.
Emerging trends such as versatility, durability, efficiency, smart functionality, and stylish home appliances are expected to drive market growth during the forecast period.
Prolonged Product Life Cycle Pose as a Challenge to the Market
The major challenge that hinders the growth of the market is the long product life cycle of large equipment. Appliances like refrigerators, air conditioners, and washing machines are made of durable materials like stainless steel and hard metal, resulting in longer replacement cycles compared to older appliances made of less durable materials.
Furthermore, appliances that come into contact with water, such as refrigerators and washing machines, are at risk of rusting, and suppliers use high-quality plastic or stainless steel to make them durable and lightweight. To extend equipment life, suppliers engage in extensive research and development to develop innovative and durable materials.
However, the long service life of such equipment reduces the frequency of product replacement, which has a negative impact on the market's annual growth. Consequently, these factors control and extend the life of home appliances, which limits the frequency of repeat sales of home appliances.
Recent Developments
In December 2022: Kenmore and Galanz collaborated to expand their portfolio of home appliances with the aim to provide engineered, design-driven appliances to present a unique and exciting product offering to the market.
In August 2022: Samsung Electronics launched a new Bespoke product line-up in Europe with the commitment to provide sustainable, intelligent, and beautifully designed digital home appliances. The product range includes a variety of eco-conscious, intelligent, and sublime design features that enable consumers to improve their lifestyles, as well as smart features that further enhance the healthy cooking experience.
Segmentation Analysis
The home appliances market report is categorized by product, application, and distribution channel. The product segment includes refrigerators, air conditioners & heaters, washing machines, microwaves & ovens, and others. The refrigerator segment is the largest, as it is an essential component of kitchen appliances and one of the first appliances people buy. Refrigerators offer an easy and convenient way to preserve food.
The application segment includes kitchen appliances, house maintenance, entertainment, cleaning, and others. The home care segment is in high demand, particularly among millennials living in urban areas who prioritize convenience and lifestyle. There is also a trend toward downsizing kitchen appliances, which is driving the growth of built-in appliances.
The distribution channel is divided into online and offline. The offline segment is dominant because consumers prefer small appliances and demand faster response times. Home appliance distributors organize marketing campaigns to build strong relationships with suppliers and customers, which helps boost the home appliances market growth.
North America is Dominating the Market Share Owing to the Availability of Technologically Advanced Home Appliances
The North America home appliances market is the most dominating market mainly due to the presence of large players in countries such as the United States and Canada and the increasing focus on upgrading old home appliances. The robust availability of digital and electronic infrastructure and surging demand for technologically advanced appliances in the region are spurring market growth. The fast and hectic lifestyle of consumers and the huge number of nuclear families increase the demand for innovative and advanced home appliances. Rising technological advancements and the adoption of the latest home appliance technologies with the increase in smartphone penetration and high internet speed are the main trends in the market.
Asia Pacific is the Fastest Growing Market Due to the Development of Smart Homes
The Asia Pacific home appliances market is the fastest growing market share mainly due to the increase in kitchen appliances incomes, the increase in the number of middle-class residents, rapid urbanization, easy availability of goods through the development of retail channels, and the changing lifestyles of the population, which promotes the growth of the regional market. The explosive adoption of large and small devices in Japan is expected to drive market growth.
With the growth of luxury apartment construction and the urbanization of the APAC region, the demand for smart home technology is growing the fastest. In addition, the improvement in people's living standards, supported by rising disposable incomes, is also driving consumers towards advanced and convenient smart homes, increasing the demand for technologically advanced products across the region.
Market growth in the APAC region is primarily driven by the growing middle-class population and their rising incomes, which have increased their purchasing power for Kitchen Appliances needs and appliances. Growing awareness of device development and transformation from traditional methods of cooking, housekeeping, and housekeeping to advanced Kitchen Appliances appliances for home maintenance and other Kitchen Appliances tasks. Additionally, rising incomes and high living standards along with modernization will also increase the demand for quality home appliances, which contribute to the growth of the concentrated market in the APAC region during the forecast period.
Competitive Landscape
- Bajaj Electricals Ltd
- Guangdong Galanz Enterprises Co., Ltd.
- Haier Inc.
- Hitachi Appliances, Inc.
- Koninklijke Philips N.V.
- LG Electronics
- SAMSUNG
- SONY ELECTRONICS INC.
- Transform SR Brands LLC
- Whirlpool
The global home appliances market is segmented as follows:
By Product
- Refrigerator
- Air Conditioner & Heater
- Washing Machine
- Microwave & Oven
- Others
By Application
- Kitchen Appliances
- House Maintenance
- Entertainment
- Cleaning
- Others
By Distribution Channel
- Offline
- Online
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Home Appliances Market By Product
- February-2023
- 148
- Global
- retail
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