Report ID : CBI_1244 |
Base Year: | 2022 |
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CAGR: | 4.3% |
Forecast Year: | 2023 - 2030 |
Revenue 2022: | $582.08 Bn |
Revenue 2030: | $814.14 Bn |
Consegic Business Intelligence analyzes that the home appliances market is growing with a CAGR of 4.3% during the forecast period (2023-2030), and the market size is projected to be valued at 814.14 Billion by 2030 from 582.08 Billion in 2022.
Home appliances are electrical or mechanical devices designed to assist various household tasks. They make daily tasks more convenient and efficient. These appliances are used for cooking, cleaning, food preservation, and others. These devices are majorly divided into three classifications, which include small appliances, major appliances, and smart home appliances. Home appliances have made our lives easier and more convenient. They have also helped to improve our health and safety. For example, door refrigerators and freezers help to keep food fresh and prevent foodborne illnesses. Washing machines and dryers help to keep our clothes clean and free of bacteria. This has resulted in a significant increase in the demand and sales of comfort home products. This surge in the working culture along with the increasing demand for technologically advanced and smart home appliances is improving the demand for home appliances across the globe.
Home appliances are equipment that is used for various household applications such as cooking, cleaning, laundry, air conditioning, and others. The growing urbanization is heavily increasing the demand for home appliances. With rising level of disposable income people are spending more on home appliances such as washing machines, refrigerators, air conditioners, water purifiers, food processors, and others. Furthermore, rapid urbanization also leads to increasing technology adoption, which leads to increased demand for smart home appliances which also leads to the high demand for home appliances. Hence, the rapid growth in urbanization and rising disposable income are the key driving factors for the growth of the household appliances market. For instance, according to the report by The World Bank in April 2023, 56% of the world's population resides in cities accounting for 4.4 billion inhabitants and this number is expected to double by 2050. For this reason, increasing urbanization along with rising disposable income levels is boosting the household appliances market growth.
Innovations such as smart sensors, IoT connectivity, and AI-driven features are transforming home appliances into smart devices that offer convenience, efficiency, and improved user experiences. Smart home appliances equipped with IoT capabilities, allow users to remotely control and monitor their devices through smartphones or voice assistants. This level of connectivity not only enhances convenience but also enables energy-efficient usage, as users can adjust settings based on real-time information. Major home appliance manufacturers are focusing on the launch of advanced and efficient appliances to provide advanced and innovative products for consumers across the globe. For instance, in April 2022, LG Electronics, a manufacturer of electronic devices announced the launch of AI-powered home appliances and air conditioners product range. The increasing focus on the launch of innovative product launches by the various key players in the market is driving the market growth worldwide.
Semiconductor chips such as microcontrollers, temperature sensors, and others are highly used in the manufacturing of technologically advanced home appliances. Various home appliances such as refrigerators and washing machines, smart TVs, and washing machines heavily depend on these chips to offer enhanced features, connectivity, and automation. The shortage of semiconductor chips has resulted in supply disruptions, delayed production, and increased costs for manufacturers of home appliances. This has led to reduced availability of certain appliance models and in some cases increasing selling costs due to supply imbalances. According to the report by The World Economic Forum Organization in April 2022, there are several factors such as increasing demand for semiconductor chips from the automotive industry, complexity in the production of semiconductors, and disruption of the semiconductor industry due to Covid-19 pandemic have led to the global semiconductor chip shortages. The high demand for semiconductors for manufacturing smart home appliances is restraining the growth of the home appliances market.
Major players involved in the home appliance market globally are increasingly investing in their research and development activities for the development of advanced technologies in home appliances. This increasing spending on research and development activities by the key players worldwide is expected to drive global market growth. For instance, Samsung Electronics' total annual spending on research and development activities in the financial year 2022 accounted for USD 18611.98 million which was 9.3% higher than the previous year 2021. Furthermore, in 2021, Haier Smart Home continued to increase its investment in 5G, AI, IoT, and other technologies. The company's year-on-year investment in research and development activities increased by 22.0%. This increasing research and development expenses by home appliance manufacturers worldwide is expected to increase the launch of the latest innovations and technologies in home appliances and drive market growth over the forecast period.
Report Attributes | Report Details |
Study Timeline | 2017-2030 |
Market Size in 2030 | USD 814.14 Billion |
CAGR (2023-2030) | 4.3% |
By Type | Major Appliances, Small Appliances, and Smart Home Appliances |
By Product Type | Refrigeration Equipment, Cooking Appliances, Washing & Drying Equipment, Heating & Cooling Equipment, Food Processing Equipment, and Others |
By Distribution Channel | Online (Company Owned Websites and E-Commerce Channels) and Offline (Supermarkets/Hypermarkets, Specialty Stores, and Others) |
By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Key Players | Whirlpool Corporation, Samsung Electronics Co. Ltd., Haier Inc., Bajaj Electricals Ltd., IFB Appliances, Panasonic Holdings Corporation, LG Electronics, Bosch-Siemens Hausgeräte, Electrolux AB, and Voltas Limited |
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Download Sample ReportThe type segment is categorized into major appliances, small appliances, and smart home appliances. In 2022, the major appliances segment accounted for the highest market share of 40.30% in the overall household appliances market. Major home appliances consist of equipment such as freezers, refrigerators, washing machines, dishwashers, air conditioners, ovens, and others. The kitchen and laundry have become an essential part of the home, which is creating a high demand for home essential appliances such as dishwashers, refrigerators, and washing machines. Various key players across the globe are focusing on the launch of new products to meet the growing demand from consumers worldwide. For instance, in October 2022, Whirlpool Corporation, an America-based home appliances manufacturing company, announced the launch of a high-capacity dishwasher. However, the smart appliances segment is expected to grow at the fastest CAGR in the market during the forecast period. The growth of the segment is attributed to the increasing focus of the key players on developing remote monitoring IoT and AI-based large home appliances.
Businesses in the global market are focusing on the development of food recognition, remote monitoring, automating heat sensing, and other technologies and integrating them into kitchen applications such as ovens and refrigerators. Companies such as Samsung, Panasonic, and others, have been introducing concepts such as refrigerator that identifies and monitors food, remote monitoring of a stovetop, and integrating artificial intelligence (AI) into appliances for recommendations. Hence, technological advancements, and contributions by market players will further foster market growth over the forecast period.
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Download Sample ReportThe product type segment is categorized into refrigeration equipment, cooking appliances, washing & drying equipment, heating & and cooling equipment, food processing equipment, and others. In 2022, the refrigeration equipment segment accounted for the highest market share in overall household appliances market. Increasing innovations in smart refrigerator technology are driving segment growth across the globe. For instance, in January 2020, Samsung Electronics Co., Ltd. introduced a new refrigerator with artificial intelligence (AI) features that can plan meals and connect with Samsung devices around the home. This new refrigerator is equipped with the company's AI ViewInside technology which scans items, identifies them, and sends updates when new or old items are out.
However, the food processing equipment segment is expected to grow at the fastest CAGR in the overall household appliances market. Food processing equipment is the kitchen appliances that allow users to quickly perform food preparation activities such as chopping, grinding, slicing, mixing, blending, kneading, and other activities. This food processing equipment comes in various categories such as dryers, mixers, chillers, feeders, fryers, grinders, homogenizers, separators, roasters, slicers, and others. Rising per capita income along with the increasing consumer spending on household and kitchen appliances are expected to drive the segment growth across the globe over the forecast period.
The distribution channel segment is categorized into online and offline. In 2022, the offline segment accounted for the highest market share in the overall home appliances market. Further, the offline segment is categorized into supermarkets/hypermarkets, specialty stores, and others. The growth of the segment is attributed to the high presence of various brand stores, electronic stores, the presence of the home appliances section in supermarkets and hypermarkets, and the existence of a strong distributor network of key manufacturers across the globe. The increasing launch of new brand outlets and stores is further driving segment growth across the globe. For instance, in July 2023, LG Electronics announced the launch of its new store in Srinagar, India to elevate the shopping experience and provide a one-stop shop for all lifestyle needs of a household for their consumers.
However, the online segment is expected to grow at the fastest CAGR in the overall home appliances market. The online segment is further categorized into company-owned websites and e-commerce channels. Online distribution channels provide the convenience of home delivery, easy purchasing, and convenience of purchasing from anywhere across the globe. The rising consumer preference for e-commerce purchases worldwide is expected to drive the segment growth over the forecast period.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regional Growth Insights
Download Sample ReportIn 2022, Asia Pacific accounted for the highest market share of 37.78% valued at USD 219.91 billion and is expected to reach USD 309.29 billion in 2030. In the Asia Pacific region, China accounted for the highest market share of 25.20% during the base year 2022 owing to the high presence of large market players across the region, increasing adoption of growth strategies by key players across the region, and high manufacturing capabilities of the region. For instance, according to the report published by The Government of China in January 2022, the revenue of China's home appliance sector reached USD 95.3 billion in 2021, which was 7.1% higher compared with the previous year 2020. According to the same report, China is the largest manufacturing hub for home appliances across the globe accounting for 60-70% of the global production capacity. Furthermore, the Asia Pacific region is dominated by some of the largest home appliances manufacturers across the globe such as Samsung Electronics Co. Ltd., Haier Inc., Bajaj Electricals Ltd., Panasonic Holdings Corporation, and LG Electronics. This presence of large market players along with the high production capacity for home appliances in the region is driving the home appliances market growth.
Moreover, Europe is expected to grow at the fastest CAGR of 4.9% during the forecast period due to rising demand for energy-efficient appliances and the high expenditure capability of end-users on smart homes appliances is driving the market growth factors across the region. Furthermore, various key players in the home appliances market are focusing on expanding their business across the Europe region, which is also driving the market growth. For instance, in August 2022, Samsung Electronics Co. Ltd. announced its plan to grow its home appliances business in the European market. Therefore, the aforementioned factors are anticipated to bolster the market growth in the Europe region.
Details Countries Growth Insights
Download Sample ReportThe Home Appliances Market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include -
In 2022, the market size of home appliances was USD 582.08 billion
In 2030, the market size of home appliances will be expected to reach USD 814.14 billion.
Increasing urbanization along with rising disposable income levels is propelling the home appliances market growth.
In 2022, the major appliances segment accounted for the highest market share of 40.30% in the overall Home Appliances market.
Europe is expected to be the fastest-growing region in the market during the forecast period.