Global Home Appliances Market - Segmented By Product (Kitchen Appliances, Washing Appliances, Entertainment Appliances), Distribution Channel (Direct Selling, Supermarkets, E-Commerce), and Geography - Growth, Trends and Forecast (2018 - 2023)
The global home appliances market was valued at USD 174.07 billion in 2017 and is projected to reach a value of USD 203.37 billion by the end of 2023, at a CAGR of 2.6% over the forecast period 2018-2023.
The global home appliances market is experiencing steady growth with the growing middle-class economy, improved disposable income levels in a number of countries, increase in labor costs, busier lifestyles, and the availability of a range of home appliances at competitive prices. With increasing digitalization, consumers have become tech-savvy and have strong knowledge regarding the use and benefits of all modern appliances. The number of smart appliances introduced in the market has increased steadily since 2012. The emergence of smart homes is aiding the proliferation of smart appliances, which can be connected to the end-user's smartphone and monitored remotely.
Use of connectivity as a differentiating feature by manufacturers Wireless technologies like Wi-Fi, Bluetooth, and ZigBee can be used in or accessed by smartphones and tablets. But the inclusion of these technologies in home appliances (like air conditioners) is a means of product differentiation by manufacturers, that is enticing tech-savvy consumers. The improvement in network infrastructure has translated into better broadband and internet penetration. Therefore, consumers are increasingly opting for wireless and technologically advanced products, mostly for the convenience it offers.
Refrigeration Appliances Account for Significant Market Share
Only a few vendors like LG Electronics and Samsung Electronics have paved their way into the smart connected refrigerator space, with product offerings largely targeted at the developed markets. Also, the provision of smart connection in a refrigerator is more of an addition in terms of feature and not a breakthrough technology in mechanics. In developed countries, the demand for smart connected kitchen appliances are gaining traction owing to early technology adopters; however, these are still in the introduction phase, and we expect that it would take three to four years for them to reach a log phase. However, the rise in consumer spending coupled with the introduction of technologically advanced models within the category are influencing the market.
Developing Nations Dominate the Asia-Pacific Home Appliances Market
The smart appliances market in Asia-Pacific is expected to grow at a rapid rate. Developed countries like Japan, Singapore, Hong Kong, and Indonesia are expected to register an increase in the sales of smart appliances, mostly owing to the rising energy and labor costs, high purchasing power of consumers, and greater awareness about smart cities and smart integrated appliances. China has the highest demand for conventional air conditioners, by volume, across the globe, owing to government policies that favor energy-saving appliances, a growing property market, and hot weather. The merger of Haier and GE appliances has given Haier an access to the latter's smart appliance technology expertise, which will make it a strong player in China.
Key Developments in the Market