Home Appliances Market Size, Share & COVID-19 Impact Analysis, By Type (Major Appliances {Refrigeration Equipment, Cooking Appliances, Washing & Drying Equipment, Heating & Cooling Appliances, and Others}, Small Appliances [Coffeemakers, Food Processors, Humidifiers, Microwave Ovens, and Others], and Smart Home Appliances), By Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, Online/E-commerce, and Others), and Regional Forecast, 2022-2029

The global home appliances market size was valued at USD 646.56 billion in 2021 and is projected to grow from USD 720.59 billion in 2023 to USD 1100.4 billion by 2031, exhibiting a CAGR of 5.57% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with home appliances experiencing lower-than-anticipated-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 4.65% in 2020 as compared to 2019.

The improving quality of life of individuals worldwide, high consumer spending, including per capita income, and shifting consumer demands are some factors that propel the home appliances market growth. Work-from-home culture became popular during the pandemic, contributing to the rising demand for white goods globally. In 2020, people spent their time at home, which encouraged them to redesign and modify their home spaces, which helped in increasing the demand for home appliances. An increase in the population's purchasing power in developed and developing countries fostered various lifestyle changes, driving the market. The sale of appliances in premium brands is estimated to grow during the festive season worldwide. The demand for these appliances is higher in mature markets such as North America and Europe. Still, the market is snowballing in Asia due to the increasing population and rising trend of urbanization.

COVID-19 IMPACT

Supply Chain Interruptions Due to COVID-19 to Affect Growth Momentum of the Market

The coronavirus pandemic impacted market growth. Major players in this market are navigating the pandemic's challenges while addressing the customer’s needs. Companies are focusing on implementing agile operations, accelerating digital transformation, and establishing variable cost structures to emerge from the pandemic stronger. The COVID-19 crisis resulted in supply chain disruptions, workforce disruptions, and consumer behavior changes, significantly impacting various aspects of the industry's growth. As a result, companies are focusing on optimizing their resilience and assessing opportunities for growth to survive in the market.

Many countries imposed several measures in 2020 to control coronavirus's spread, resulting in severe supply chain disruptions. Although factories globally have been back in production since mid-2020, the continued spread of the virus and outbreaks of new emerging variants presented challenges to home appliance companies throughout the supply chain. Labor shortages at factories and logistics operations due to the pandemic further significantly impacted supply chains globally.

Despite the negative impact of the coronavirus pandemic, the global market is likely to recover in the coming years. With numerous individuals confined to homes, homeschooling, and working remotely, the demand for consumer electronics and smart home appliance products is increasing. The coronavirus pandemic pushed consumers toward e-commerce websites due to the temporary closure of physical stores. This factor has significantly increased online purchases of home appliances after the COVID-19 outbreak. White goods manufacturing companies are focusing on offering their products through online channels to generate more revenue. For instance, in September 2022, Samsung, a multinational conglomerate company headquartered in South Korea, launched its Ecobubble range of automatic top-load washing machines in India.

LATEST TRENDS

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Growing Traction for Smart Home Appliances to Influence Consumer Behavior

Intelligent home appliances use advanced technologies, such as artificial intelligence, the Internet of Things, touchless tech, and integrated smart home tech, that give users several benefits such as safety, security, and convenience for their homes. The high potential for growth in electronic appliances with innovative features due to the growing demand from high-tech users worldwide is boosting the market growth of smart home appliances.

The growing use of smart home appliances, such as bright air conditioning/external units, Heating, Ventilation, and Air Conditioning (HVAC), intelligent refrigerators, and cooking appliances, that provide energy consumption efficiency concerning customer usage is accelerating market growth. For instance, in April 2022, LG Electronics, a South Korea-based company, launched a range of intelligent appliances with AI technology in India. The new lineup consists of new InstaView door-in-door refrigerators, AI direct-drive washing machines, and air conditioners that are energy-efficient.

DRIVING FACTORS

Increase in Consumer Spending Power and Rising Disposable Income to Offer Impetus to Market Growth

A home appliance is an electric appliance that assists in household functions such as cooking, washing, and cleaning, among other homemaking tasks. The purchase of white goods, such as refrigerators, cooking appliances, and washing appliances, heating & cooling appliances, is attributable to rising levels of disposable incomes, growing global population, and improving living standards of the population. The growing expenditure power of consumers led to a great demand for such appliances. Brand-new white goods such as refrigerators, washing machines, air-conditioners (AC), and cooking appliances are expensive and can be afforded by a population with high disposable income.

Shifting Consumer Demand toward Technology and Environment-friendly Products is Likely to Impede the Demand

Tech-savvy consumers are ready to invest in smart home appliances that improve their lives. The rapidly growing number of internet users has changed consumer behavior and the retail landscape for this industry. New technology developments for intelligent and energy-efficient appliances are crucial factors that will increase the market value in 2021. Major home appliance manufacturers are highly focused on introducing efficient appliances with intelligent services that maximize energy savings to provide sustainable solutions for users. For instance, in February 2021, Panasonic Holdings Corp., a Japanese company, announced the expansion of its AI-enabled appliances, including connected refrigerators, air conditioners, and washing machines in India.

RESTRAINING FACTORS

Global Semiconductor Chip Shortage to Restrain Market Expansion

The global chip shortage began before the pandemic that disrupted several industries worldwide. The global chip shortage was prompted during the pandemic due to higher demand for electronic products and disruption in the supply chains throughout. Microchips allow appliances to have advanced functions such as connecting with other intelligent devices or innovative home systems that permit individuals to control appliances using smartphones. Increased demand for consumer electronics caused a struggle in the supply chain due to a microchip shortage in the market that negatively affected the electronics industry. According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), several manufacturers of consumer electronic products are facing bottlenecks in manufacturing and many companies have fallen behind in terms of export.

SEGMENTATION

By Type Analysis

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Trend for Smart Homes Coupled with Digitization across Households to Encourage Major Appliances Segment Growth

Based on type, the market is segmented into major appliances, small appliances, and smart home appliances. The major appliances segment dominated the market in 2021.

The demand for household appliances has developed into a global industry. With increasing disposable income, bigger spaces, and access to electricity, household appliances are now more affordable for a large share of the worldwide population to assist in day-to-day household chores. Connected devices evolved into the market and most appliances are connected to the internet to automate activities with less human intervention.

The recent trend of smart homes, coupled with the increasing focus of major companies to develop and launch innovative and connected home appliances, is expected to fuel the market's growth. Demand for smart white goods is driven by various factors such as the rising penetration of smart homes, increasing home development projects, and rapid IT and wireless communication developments. Rising home improvement projects in countries such as the United States, Canada, and Germany are making their way for different innovative products for residential applications. The product segment contributed a market share of 11.10% in 2021 in the global market and is poised to grow continuously over the forecast period.

By Distribution Channel Analysis

Due to COVID-19 Response, Online Segment to Dominate the Market in the Future

On the basis of distribution channels, the market is divided into supermarkets & hypermarkets, specialty stores, online/e-commerce, and others.

The specialty stores segment held a significant home appliances market share in 2021, accounting for more than 45% of global sales. The segment is predicted to grow steadily over the forthcoming years. specialty stores offer customers specialized services along with various discounts and coupon codes.

Though the specialty stores segment held the biggest market share in 2021, the online retail segment is also anticipated to grow at the fastest rate. Online platforms have become popular as they provide doorstep delivery with free shipping and easy exchange & return offers to capture the market share and increase appliance sales. Another major factor for the increase in online sales is the rapidly changing lifestyles of consumers, where the majority fall under the working category and have hectic schedules. The customer can choose the product from the comfort of home, reducing time, and there is no requirement to go in person, as all different products are listed on the website and applications. The rise in online sales is further fueled by options such as EMI and finance facilities.

REGIONAL INSIGHTS

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Based on geography, the global market is categorized into Europe, North America, South America, Asia Pacific, and the Middle East & Africa.

North America is primarily driven by the enormous import of a variety of appliances, including refrigerators and washing machines in the U.S. and Canada, thereby supporting the consumption rate of these appliances. It is the world's largest regional economy and is anticipated to remain a key region in the global economy for the predictable future, mainly for developing new technologies. The high spending power of consumers, rising adoption of smart devices, and significant consumer demand for connected home appliances will propel the consumption rate of IoT-based appliances in the region.

According to the data presented by the Consumer Technology Association in 2019, 28.6 million units of connected home products were sold in the U.S. compared to 24 million units in 2018. In terms of household appliances such as refrigerators that work all day, consumers prefer refrigerators that are energy savers. The precise size and capacity of appliances are highly looked for when buying appliances such as freezers, refrigerators, and dishwashers. High efficiency, enhanced design, and enhanced insulated appliances are gaining traction in the market.

In Asia Pacific, rising consumers demand from middle-income groups for energy-efficient appliances will offer newer market growth opportunities. In 2020, according to the data presented by the China Household Electrical Appliances Association, online retail sales of washers & dryers in China reached USD 1,645.85 million, 5.6% up over the previous year. Shifting consumer trends toward premium-quality white goods and the growing middle-class population in countries such as China and India will drive market growth. The growing population in China and India will lead to more household appliances such as washing machines and refrigerators supporting the product demand.

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The rising residential infrastructural construction and consumers showing interest in appliances will increase the consumption rate of household appliances among the Western European population, thereby fueling the market growth rate. The growing demand for innovative products and the popularity of technologically advanced home appliances are expected to drive the market.

KEY INDUSTRY PLAYERS

Innovative Product Features and Affordable Prices by Market Players to Help Gain Competitive Advantage

The leading companies in the white goods market have been focusing on new brands, product launches, and partnerships for the expansion of the market. Key players progressively focus on launching innovative white goods to attract new consumers and boost product sales. For instance, in September 2022, Samsung Electronics launched its all-new bespoke refrigerator with 10 customizable and ultra-luxurious color combinations. In May 2022, Hisense, a white goods and electronics manufacturer, launched its new range of Wi-Fi-enabled smart home appliances in the Middle East.  

Manufacturers emphasize on new technologies to develop innovative products, increase their customer base, and generate more revenue. Some companies also focus on mergers and acquisitions to expand their product portfolio. For instance, in February 2022, Crompton Greaves Consumer Electricals announced the acquisition of Butterfly Gandhimathi Appliances Ltd., a small household appliances manufacturer, to strengthen its small domestic appliances category.

LIST OF KEY COMPANIES PROFILED:

• Whirlpool Corporation (U.S.)


• Samsung Electronics Co. Ltd. (South Korea)


• Haier Inc. (China)


• Bajaj Electricals Ltd (India)


• Koninklijke Philips N.V. (South Korea)


• IFB Appliances (India)


• KENT (India)


• Eureka Forbes Ltd. (India)


• Panasonic Holdings Corporation (Japan)


• Orient Electric (India)

KEY INDUSTRY DEVELOPMENTS:

• August 2022: Maytag, a brand by Whirlpool, launched a new laundry washer-dryer system specifically designed to remove pet hair from towels, blankets, clothes, and other household fabric items.


• September 2022: Samsung launched its new range of semi-automatic washing machines with innovative features such as auto restart, rat protection, and an air turbo drying system.


• August 2022: Haier China and the Investment Authority of Egypt signed a memorandum of understanding to construct an industrial complex in Egypt for USD 130 million to manufacture home appliances.


• July 2022: Samsung Electronics Singapore launched new dishwashers designed for convenient, hygienic, and efficient cleaning. The products are available with smart features that assist users in controlling, monitoring, and personalizing dishwashing experiences.


• August 2020, IFB Appliances launched two new front-load washing machines, Senator Smart Touch and Senator VXS, in the high-end segment for Indian consumers.

REPORT COVERAGE

An Infographic Representation of Home Appliances Market

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The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and market dynamics. Besides this, the report provides insights into the key market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth.

Report Scope & Segmentation