According to a new report published by Allied Market Research titled,"Household Appliances Market by Product and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global household appliances market size was valued at $501,532 million in 2017, and is projected to reach $763,451 million by 2025, growing at a CAGR of 5.4% from 2018 to 2025. In 2017, the U.S. household appliances market accounted for nearly 17% of the global household appliances market.
Household appliances can be categorized into major appliances or white goods, small appliances, and consumer electronics. The household appliances market growth is attributed to increase in technological advancement, rapid urbanization, growth of the housing sector, rise in per capita income, improvement in living standard, surge in need for comfort in household chores, changes in consumer lifestyle, and escalation in number of smaller households. In addition, inclination of consumers toward eco-friendly & energy-efficient appliances further boost the market growth.
Growth in government subsidiaries in the form of rebates and tax credits to the manufacturers producing energy efficient device is anticipated to drive the development of the energy efficient as well as smart household appliances. Along with easing the customer-user interface by integrating the devices with the IoT platform, the manufacturers focus on developing energy efficient technologies, which comply with the energy star specifications and efficiency levels.
Manufacturers in the household appliances market are continuously developing products with enhanced functionality and features to remain competitive. Despite developing products with higher added value, the prices for the products have collapsed and thus, remained stagnant at a low level for several years. The decrease in price was due to the pressure of competition from countries with low manufacturing costs. Manufacturers are also facing pressure related to margins owing to fierce competition in the market. This price fall is forcing companies to develop innovative products. This decrease in price trend of household appliances is encouraging customers to purchase the products, which in turn can drive the market. Reducing prices of household appliances has a positive impact on the growth of the household appliances market.
The market is highly competitive, as repeat purchase is low and consumers are well versed with the product, therefore losing a customer is a sensitive affair. To build relation with every single customer, manufacturers invest heavily on R&D to launch quality products at a competitive price and offer after sale services as well. Moreover, after launching new products, players must invest heavily on various types of marketing communications to increase their reach.
In November 2018, Samsung announced to expand its washing machine product line to cater to the demand across broad range of income groups in the rural, tier-II, tier-III, and tier-IV markets.
In September 2018, OnePlus, the Chinese smartphones manufacturing company announced to expand its product line into the SmartTV industry and is expected to compete with other brands and its rival smartphone companies such as Xiaomi and Samsung.
In August 2018, Flipkart launched a new, innovative range of washing machines through its private label brand, MarQ. The new line of washing machines is featured as top-of-the-line quality, superior tech-specifications, and energy efficient within economic pricing.
In July 2018, Xiaomi launched a new product to its Mijia product line. Mijia Smart Air Conditioner features an anti-UV ABS polymer resin body, which won the 2017 Good Design gold award. The product further comes with additional features such as a LED display on the front of the unit, and users can control the temperature and cooling times via the Mi Home app from their smart devices.
The global household appliances industry is segmented into product, distribution channel, and region. By product, in the cooking appliances segment, induction cooking technology is gaining popularity, owing to rise in fuel prices. Moreover, changes in lifestyle of consumers with increase in number of nuclear families has increased the dependence of users on the household devices and hence is expected to drive the growth of the household appliances market.
By distribution channel, the specialty store segment generated the highest revenue in 2017, as the majority of the consumers rely on specialty stores owing to specialization in the product category and presence of high expertise.
Conversely, e-commerce sales have witnessed the highest growth rate, as it offers a wide variety of products and is one of the convenient shopping methods.
Asia-Pacific household appliances market share is expected to account for the highest market share in 2017 and is expected to maintain its dominant position throughout the forecast period. Improvement in living standard and development of the housing sector foster the growth of the Asia-Pacific market.
Key findings of the Household Appliances Market:
- In terms of value, the refrigerator segment is expected to grow at a CAGR of 6.4% during the forecast period.
- North America is expected to dominate the market, registering a significant CAGR of 4.6% in terms of value.
- Asia-Pacific is projected to show exponential growth throughout the forecast years, growing at a CAGR 6.3%, in terms of value.
- The specialty store distribution channel is anticipated to dominate global household appliances market, registering a CAGR of 5.0%.
- China accounted for more than one-third of the total Asia-Pacific household appliances market in 2017.
- In the global household appliances market, India is expected to grow at a CAGR of 8.3% in terms of value.
The key players profiled in this report include AB Electrolux; Qingdao Haier Co., Ltd. (Haier); Hitachi, Ltd.; LG Electronics Inc. (LG); Midea Group Co., Ltd. (Midea); Panasonic Corporation (Panasonic); Robert Bosch GmbH; Samsung Electronics Co., Ltd.; Sharp Corporation (Sharp); and Whirlpool Corporation.