Household Appliance Manufacturing
Description
Companies in this industry manufacture small electric appliances as well as other major household appliances. Major companies include BSH Hausgeräte (Germany), Electrolux (Sweden), Haier Electronics and GE Appliances (both based in China), LG Electronics (South Korea), and Whirlpool (US).
The global household appliances market has been growing steadily over the years. In 2024, global sales in unites amounted to over 770 million units of major appliances, according to figures from Statista. The growth is driven by innovations in technology, replacement demand, and a growing middle class in emerging markets.
The US household appliance manufacturing industry consists of about 300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $23 billion.
COMPETITIVE LANDSCAPE
Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The US industry is highly concentrated: the top 50 companies generate over 95% of revenue.
Imports, primarily from China and Mexico, are a major source of competition for US household appliance manufacturers, accounting for about 70% of the US market. US exports of household appliances, which account for about 40% of production, go mainly to Canada and Mexico.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are household refrigerators (about 20%), household ranges and ovens (about 10%), as well as dishwashers (about 10%), and small electric appliances (about 10%). Other leading sources of revenue include fans, vacuum cleaners, and personal care appliances.
Most appliance makers produce the body of their product from steel and plastics, and buy components like electric motors, compressors, heat elements, and controls from suppliers. Manufacturing operations consist largely of shaping metal in stamping presses with custom-built dies and assembling components. Steel, either cold-rolled, hot-rolled, or galvanized, is the major raw material. Plastics are used in making vacuum cleaner parts, as an insulating material in other products, and for the interiors of refrigerators. Painting operations are part of most manufacturing plants. Manufacturers generally produce several models of a particular product in long production runs to achieve economies of scale.
Many appliance manufacturers also operate as their own distributor, and some operate retail outlets. Because of the strength of brand names, manufacturers may license a brand name or act as contract supplier for a brand name.
The global household appliances market has been growing steadily over the years. In 2024, global sales in unites amounted to over 770 million units of major appliances, according to figures from Statista. The growth is driven by innovations in technology, replacement demand, and a growing middle class in emerging markets.
The US household appliance manufacturing industry consists of about 300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $23 billion.
COMPETITIVE LANDSCAPE
Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The US industry is highly concentrated: the top 50 companies generate over 95% of revenue.
Imports, primarily from China and Mexico, are a major source of competition for US household appliance manufacturers, accounting for about 70% of the US market. US exports of household appliances, which account for about 40% of production, go mainly to Canada and Mexico.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are household refrigerators (about 20%), household ranges and ovens (about 10%), as well as dishwashers (about 10%), and small electric appliances (about 10%). Other leading sources of revenue include fans, vacuum cleaners, and personal care appliances.
Most appliance makers produce the body of their product from steel and plastics, and buy components like electric motors, compressors, heat elements, and controls from suppliers. Manufacturing operations consist largely of shaping metal in stamping presses with custom-built dies and assembling components. Steel, either cold-rolled, hot-rolled, or galvanized, is the major raw material. Plastics are used in making vacuum cleaner parts, as an insulating material in other products, and for the interiors of refrigerators. Painting operations are part of most manufacturing plants. Manufacturers generally produce several models of a particular product in long production runs to achieve economies of scale.
Many appliance manufacturers also operate as their own distributor, and some operate retail outlets. Because of the strength of brand names, manufacturers may license a brand name or act as contract supplier for a brand name.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
