White Goods Market Size, Share & Trends Analysis Report By Product (Air conditioners, Refrigerator, Washing Machine, Dishwasher, Microwave Oven, Others), By End-User (Residential, Commercial), By Distribution Channel (Supermarket & Hypermarket, Specialty Store, Department store, E-commerce, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global white goods market was valued at USD 769.53 billion in 2023. It is expected to reach USD 1,565.42 billion in 2032, growing at a CAGR of 8.21% over the forecast period (2024-2032). As disposable incomes increase globally, especially in emerging economies, the demand for white goods rises. Consumers are more likely to upgrade to newer, more advanced appliances that offer better features and durability.

White goods refer to hefty consumer durables or huge home appliances that have historically only been available in white. Although these items are available in various colors, they continue to be called "white products." They include washing machines, air conditioners, refrigerators, and other home equipment. White appliances are typically utilized for various everyday activities, including heating and cooling, cleaning, and washing.

The most significant problem with the older versions of these gadgets is that they produce a great deal of noise. There are numerous users of white goods despite their severe disadvantages. The primary reason for their use is the necessity for various appliances and other products in multiple locations. The convenience of white goods is another important aspect of why individuals utilize them. Numerous end-use businesses, including hospitals & clinics, dry cleaners & cleaning services, and the hotel industry, use white goods extensively.

During the period forecast, the global market for white goods expansion is anticipated to be fueled by an increase in disposable income and home improvement spending. People are constantly adopting smart appliances to enhance their quality of life. Thus companies that manufacture white goods are investing considerably in research and development. In 2020, for instance, at CES, LG Electronics (LG) presented its most sophisticated laundry innovation, employing artificial intelligence to give ideal outcomes with no guesswork through careful washing. In addition, consumers are opting to replace their outdated household appliances, such as air conditioners, refrigerators, and washing machines, with new and innovative white goods. Increasing acceptance of robotics in large industries has contributed to expanding smart and advanced home appliances.

Market Dynamics

White Goods Market Driving Factors

• The Advancing Urban Population and Technologies in Home Appliances

Increasing population and population density in metropolitan areas have been the primary growth drivers of the white goods sector. People primarily migrate from rural regions to urban areas in quest of employment opportunities and remain there permanently. This movement generates enormous prospects for real estate, hotels, restaurants, hospitals, and clinics that demand a variety of white goods. Air conditioners, water heaters, refrigerators, and vacuum cleaners are examples of white goods. As the population living in metropolitan areas who seek a high standard of life increases, there is a tremendous demand for white goods.

Urbanization, the progressive migration of the human population from rural to urban regions, along with the rise of the global population, might bring another 2.5 billion people to urban areas by 2050, according to some estimates. This will propel the demand for white goods in the coming years. Moreover, most manufacturers are investing extensively in research and innovation to enhance their home appliances in response to the rising desire for highly advanced and intelligent devices. The Internet of Things and cell phone connectivity with smart products and appliances are in extremely high demand among customers. There are currently available air conditioners, refrigerators, and water heaters with internet connectivity that can be operated by cell phones. Customers are becoming increasingly interested in intelligent features and functionality, which can significantly enhance their quality of life. And thus, boosting the white goods market share worldwide.

White Goods Market Restraining Factors

• Lack of Suitable Electrification to Hinder Market Growth

Electricity is the primary component of household appliances, as most white goods are powered by electricity, and a few are battery-operated. Energy prices account for a substantial portion of domestic spending, play a crucial role in industrial competitiveness, and impact energy consumption patterns. Lack of adequate electricity in rural and remote areas discourages the purchase of white goods. As of 2017, as per the Alliance for Rural Electrification (ARE), more than a billion people, or 14 % of the world's population, lacked access to household electricity. This factor hampers the white goods market growth.

White Goods Market Opportunities

• Speedy Advancements in the Retail Sector to Boost Market Opportunities

Smart and improved home appliances require advertising for their visibility and an extensive area distribution network. In developing nations, the growing number of large department stores, including supermarkets and hypermarkets, has increased the availability of white goods. These retailers contribute to the growth of household appliance sales. Supermarkets, hypermarkets, and specialized stores have functioned as more effective distribution points for a variety of white goods, like air conditioners, refrigerators, vacuum cleaners, and water heaters. Urbanization expansion is anticipated to stimulate the retail sector's development, increasing the demand for white goods and creating remunerative opportunities.

Regional Analysis

The region-wise segmentation of the global white goods market includes North America, Europe, Asia Pacific, and LAMEA.

The Asia Pacific and North America Will Dominate the Regional Market

The Asia Pacific is expected to advance at a CAGR of 9.5% and command the market with the largest share. Globally operating companies of white goods intend to invest in the emerging economies of Asia-Pacific, particularly India, China, and Indonesia, due to the increasing demand for smart and advanced appliances, rising disposable income, and growing millennial population. Increasing urbanization and a high level of living among the people, particularly in developing nations like India and China, are boosting the expansion of the white goods market in the Asia-Pacific region. Increasing discretionary income and home improvement expenditures are two of the most influential variables positively affecting the product market. People in India are replacing outdated household appliances with more innovative and advanced models, increasing the demand for white goods during the projection period.

North America is expected to have a share of USD 2, 67,192 million, growing at a CAGR of 4.7%. The North American market for air conditioners and refrigerators has shifted due to the development of home and kitchen equipment and globally operating companies in the region. The rising use of energy-efficient white appliances due to a lowering energy consumption rate is expected to increase demand for new and innovative white appliances. North American washing machine demand is driven by the growing demand for energy-efficient devices in the United States. Increasing awareness of ENERGY STAR-certified items contributes to the expansion in the United States. In addition, it is anticipated that the regional market will experience tremendous development due to replacing conventional machines with smart, connected devices.

Segmental Analysis

The global white goods market is classified based on product, end-user, distribution channel, and region.

By Product Analysis

Segmentation based on product includes air conditioner, refrigerator, washing machine, dishwasher, microwave oven, and others.

The refrigerators segment is anticipated to advance at a CAGR of 7.3% and hold the largest share. A refrigerator is a household and commercial equipment composed of a thermally insulated chamber and a heating system that transfers heat from its inside to its exterior, cooling its interior to below room temperature. Increasing investments in the invention of refrigerator units, rising income levels, and the availability of low-priced products with high specifications are some important factors driving the expansion of the refrigerators market. The market for refrigerators is expanding steadily due to rising consumer purchasing power and the availability of financing options. Increasing consumer awareness of premium and sophisticated refrigerator brands will contribute to the market's growth in the future years.

The air conditioners segment will hold the second-largest share. Air conditioning reduces heat and humidity to improve occupant comfort in inhabited spaces. The predicted rise in the market is mainly attributable to growing global temperatures and humidity levels, as well as the rising adoption of air conditioners as a necessity rather than a luxury. Increasing technological advancements in air conditioners, such as the availability of inverter and air purification systems, will likely favor global air conditioners over the forecast period.

By End-User Analysis

Segmentation based on end-user includes residential and commercial. 

The residential segment will likely grow at a CAGR of 7.5% and hold the largest market share. The residential sector refers to the consumption of white goods for non-commercial purposes. Improving lifestyles and living standards are significantly boosting the demand for white goods. People actively engage in home improvement, interior design, and replacing obsolete white goods with smart and innovative alternatives. The residential segment of the white goods market is driven by the rising living standards, changing lifestyles, and rise in disposable income of the population.

The commercial segment will hold the second-largest share. Hotels, restaurants, industries, hospitals, commercial and government complexes, and offices make up the commercial component of the white goods market. The global expansion of the hotel segment and the industrialization and commercialization of small and medium-sized businesses benefit the demand for white goods such as air conditioners, vacuum cleaners, water heaters, and microwave ovens. Throughout the projected period, the rise of the tourism industry will continue to influence the expansion of the hotel industry, which in turn will increase the demand for white goods.

By Distribution Channel Analysis

Segmentation based on distribution channels includes supermarkets & hypermarkets, specialty stores, department stores, e-commerce, and others.

The specialty store segment is expected to grow at a CAGR of 7.6% and hold the largest market share. Unlike retailers selling various consumer goods categories, a specialty store specializes in particular product divisions. The segment's rise is mainly attributable to the benefits associated with specialty stores, such as providing consumers with additional brand options for a specific product area and expert and educated staff guidance. In specialty stores, customers can compare and purchase numerous parameters.

The e-commerce segment will hold the second-largest share. E-commerce platforms' easy accessibility enhances their development in the white goods sector, making them a preferred channel for purchasing white goods. The white goods market growth over the forecast period will be fueled by the accessibility of information and online demonstration videos. In addition, time-saving features and the home delivery option lead to product market expansion. Transportation convenience and globalization are driving the development of the online distribution of business-to-business white-goods products, such as air conditioners, refrigerators, and water heaters. The growing use of e-commerce platforms is anticipated to increase the demand for white goods sold via e-commerce.

Recent Developments

• July 2024 - The Department for Promotion of Industry and Internal Trade (DPIIT) declared that the Production-Linked Incentive (PLI) scheme for white goods will reopen for applications. The window will be open for ninety days, starting on July 15. This decision aims to give potential investors one more chance to profit from the program, which is centered around LED lights and air conditioners.
• May 2024 - The manufacturer of appliances and consumer electronics, Veira, announced that it would invest Rs 450 crore to build a new manufacturing facility in Greater Noida to increase production capacity for air coolers and washing machines. According to Veira's statement, this investment will enable the company to increase its yearly production capacity of air coolers and washing machines from 100,000 to 500,000 units.