The main reason for boosting the market of home appliances increased disposable income of people in several countries, a rise in labor costs, more hectic schedules of people, and the availability at reasonable prices of a variety of home appliances. Consumers have become tech-savvy with increasing digitalization and have a good awareness of the use and benefits of all new appliances, which is driving the market of the global home appliance market.
Usage of Wireless technology by manufacturers as a distinguishing feature such as Wi-Fi and Bluetooth can be used in smartphones and tablets or accessed. However, the use of these technologies in household appliances such as air conditioners is a way for manufacturers to distinguish goods, attracting tech-savvy customers. The increase in network infrastructure has resulted in better penetration of broadband and the internet. Consumers are therefore increasingly opting, mainly for the comfort it provides, for wireless and technologically advanced goods.
The global home appliance market is estimated at USD 104.4 billion in 2019 and is projected to reach USD 196.4 billion by 2026, registering a CAGR of 9.4% from 2019 to 2026.
Moreover, home appliances perform various functions, ranging from cooking meals to personal care. Trends such as performance, variety, sustainability, and sleek design, and smart functionality of home appliances are significantly driving the market. Home appliance markets provide valuable opportunities for market development, as they are easy to use and help to enhance the quality of life.
Moreover, in terms of sustainability and energy conservation, the industry is experiencing new developments, thereby simplifying many household tasks while encouraging well-being. Avenues for market growth are provided by high-quality materials and aesthetically appealing designs combined with innovative and diverse functionalities. Besides, the growing adoption of mobile devices and technologically advanced products worldwide coupled with technological developments in the fields of communication media, sensors, microchips, and hardware products is propelling demand for the smart home appliance. The abovementioned factors are anticipated to drive the global home appliance market.
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COVID-19 has become an incomparable global public health emergency that has set back the development of the global home appliance market. Shut down of leading brands hypermarkets, stores, and showrooms have impacted sales of different home appliances goods and have changed the purchasing pattern of the customer. China is one of the largest suppliers of raw materials as well as finished goods are heavily affected, impacting international trade on a large-scale. The sector is facing a decline in production, instability in supply, and price volatility. Although this will significantly encourage local producers to step up and meet increasing demand, the raw material shortage can still pose a challenge to this field.
Based on product type global home appliance market is divided into Refrigerators & Freezers, Washers & Dryers, and Dishwashers. The refrigerators & Freezers segment is accounted to hold the largest market share in 2019, and it is expected to grow with the highest CAGR during the forecast period. A refrigerator is a healthy, simple, and convenient way to preserve food and food items. Increased disposable income, the availability of smart and energy-efficient refrigerator systems, and the growth of the nuclear family base are contributing to a rise in demand for household refrigerators.
The most frequently used type of door is single door refrigerators since they are cost-efficient and easy to use. Contrarily, due to the ease of use and smart features introduced in these refrigerators, French door refrigerators are rapidly gaining popularity. Another factor boosting the market of refrigerators & freezers is their durability and toughness. An average lifespan of a properly maintained refrigerator is estimated to be between 14 and 17 years.
However, industry participants are trying to come up with new models that have a minimal environmental impact. Abandonment of the use of old refrigerators and frequent maintenance may minimize toxic emissions, thus decreasing the environmental pollution. Refrigeration is further used in various manufacturing industries, including food and beverage, chemical, mechanical engineering, plastic processing, and others, which is expected to fuel the market in near future.
Based on the price range, the market is segmented into low, medium, and high. The medium price segment is accounted to dominate the market in 2019, and it is expected to grow with one of the highest CAGR over the forecast period. Owing to the massive population of middle-class people, many manufacturers opt for the medium price range because it effectively draws buyers and increases the company's sales and revenue.
The medium price category significantly attracts buyers in the medium income category who are looking for the product's price, brand image, and special features. The population of the middle class is growing across the globe, and the growth of this segment is expected to be powered by it. The expansion occurs in the 'financial status of middle class' that will grow from 1.8 billion in 2009 to 3.2 billion by 2020 and 4.9 billion by 2030, respectively.
The rising revenue in parallel with the increasing urbanization in the world is, therefore, estimated to contribute significantly to the demand for home appliances. On the other hand, products in a low-price range with luxury appearances quickly catch the customer’s attention. The increasing popularity of consumer loans and the expansion of hire purchase schemes is estimated to drive the price-sensitive consumers to the market.
By region, the market is segmented into North America, Europe, Asia-Pacific, and Central and South America and the Caribbean, and the Middle East and Africa (LAMEA). Among these, Asia-Pacific is expected to dominate the market and is presumed to exhibit the fastest growth in the home appliance market during the forecast period. This is due to the emergence of the retail sector, real estate, and housing demand, along with higher disposable income and changing lifestyles of the population in the region. Also, a large middle-class population has the potential to be called a growth engine of the developing world, particularly in the largest developing countries like China and India.
Asia will account for 66% of the world's middle-class population and 59% of middle-class consumption by 2030, compared to 28% and 23% in 2009. Growing rural electrification, the e-commerce sector, and the presence of numerous key players are driving consumption and domestic demand, consolidating this nascent middle-income community into a stable middle class might provide a strong foundation for economic growth.
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The market in North America is booming for home appliances, owing to the potential it has to expand and meet the customer trend of using products that demands less service and energy efficiency. Manufacturers try to modify the product to give more value with multi-utility features that look basic and trendy than the regular ones and are aesthetically pleasing. Besides, in recent times, environmentally friendly goods are also gaining considerable popularity, with a growing emphasis on efforts to control global warming by both the government and consumers.
The most prominent revenue form for manufacturers was replacement sales powered by-products with improved quality levels, less or restricted harmful emissions, technological advances, better wireless goods, ease of access, and in-built and chargeable inverters are expected to boost the global home appliances market in the future.
According to Straits Research analysis, the major key players in the global video creation tool market are
The current business environment is highly competitive, witnesses intense rivalry between the key players to achieve market supremacy. Thus, facilitating increasing market growth through strategic measures such as partnerships, mergers, and acquisitions. Industry participants have entered into strategic alliances to strengthen their product range and regional reach with suppliers and distributors.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Product Type (Washers & Dryers, and Dishwashers), Price Range (Low-High), Channel (Direct and Distributor)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Qingdao Haier Co., Ltd, SAMSUNG ELECTRONICS CO., LTD, Whirlpool Corporation, AB Electrolux, Vestel, Midea Group, Godrej.com, BSH Hausgeräte GmbH, Hitachi, Ltd, LG Electronics, THERMADOR, GE Appliances (Haier Company), ASKO APPLIANCES, AEG (AB Electrolux), JennAir, Dacor, Inc., Sub-Zero Group, Inc, Viking Range, LLC, Fisher & Paykel Appliances Limited, SchulthessMaschinen AG, V-ZUG Ltd, Miele, SMEG S.p. A, Gaggenau, NEFF,|
|Key Market Opportunities||High Demand In Technology Sector Is Pushing Home Appliance Market|