Home Appliances Market Size (2024 – 2030)

The Global Home Appliances Market size was valued at USD 676.84 billion in 2023 and is projected to reach USD 958.75 billion by 2030, with a CAGR of 5.1% during the forecast period 2024–2030.

Domestic appliances, often powered by electricity, are instruments used mainly in homes for everyday chores like cooking, cleaning, or preserving food. These appliances, commonly referred to as home appliances, mainly include white goods such as refrigerators, air conditioners, dishwashers, clothes dryers, drying cabinets, freezers, stoves, water heaters, and washing machines. Distribution of these appliances occurs through various channels, including Supermarkets and Hypermarkets, Specialty Stores, E-Commerce, and others.

In many households, the prevalence of compact domestic appliances is notable, as they facilitate indoor tasks such as cooking, cleaning, and personal grooming, enhancing efficiency. These smaller appliances, found in kitchens, are instrumental in reducing the time and effort needed for such activities. Retailers like Walmart, Reliance Digital, Croma, and others offer an extensive range of these appliances, from manual to semi-automatic and fully automatic options.

Key Market Insights:

The consumer landscape has transformed with the rapid embrace of advanced technological products that simplify daily activities. The widespread adoption of smartphones and the increasing use of IoT devices have opened up new avenues in various sectors, including industrial automation, smart homes, and smart cities.

Gadgets such as smartphones, intelligent speakers, and connected devices have spurred the evolution of the home appliance market, characterized by internet-connected appliances that minimize human intervention. The home appliance market is anticipated to see significant growth in the coming years, driven by rising disposable incomes in several developing nations.

There is a growing demand for air conditioners, washing machines, and refrigerators, aiding consumers in elevating their living standards and coinciding with an increase in the number of households worldwide.

Advancements in technology within the realm of electronic appliances have led consumers to opt for more efficient devices, incorporating new technologies into their homes. These newer home appliances are more energy and water-efficient compared to traditional models, a trend that is also generating opportunities in the home appliance market.

Numerous leading entities in the home appliance sector are heavily investing in research and development to innovate and create advanced appliances, fostering the growth of this market.

Global Home Appliances Market Drivers:

The growth of the home appliance sector is anticipated to be driven by advancements in technology.

Various measures and policies have been implemented globally to enhance the efficiency of home appliances in an effort to decrease carbon emissions. For instance, the European Union has established minimum energy performance standards and mandated eco-design along with energy labeling for appliances in numerous countries. Manufacturers are increasingly focusing on creating appliances that can be controlled via mobile devices. Technologies like the Internet of Things (IoT) are revolutionizing the way appliances such as air conditioners and heaters are monitored, enabling more efficient energy use by analyzing consumption patterns and optimizing temperature controls.

The development of intelligent home appliances, a result of technological progress, is expected to spur market growth during the forecast period. These smart appliances boast enhanced features, consume less energy, and are becoming increasingly popular among consumers. Factors such as rising disposable incomes, higher living standards, and a preference for convenience are prompting consumers to upgrade to these smarter versions, which is likely to amplify market demand. Home appliances are highly sought after for their convenience, effort reduction, and time-saving qualities. Continuous product innovation, development of new products, differentiation, and the addition of various value-added functionalities are projected to further drive market demand. Attributes like efficiency, variety, sustainability, stylish design, and smart functionality significantly influence the market. The ease of use and life-enhancing nature of these appliances present substantial opportunities for market growth.

Additionally, the market is experiencing trends towards sustainability and energy efficiency, making household chores simpler and more efficient. The integration of high-quality materials, appealing designs, and innovative functionalities offers prospects for market expansion. The design aspect remains crucial in home appliance manufacturing.

Increased Consumer Spending Power and Rising Disposable Incomes Fueling Market Growth

A home appliance, typically electric, aids in domestic tasks such as cooking, washing, and cleaning. The purchase of white goods like refrigerators, cooking devices, washing appliances, and heating & cooling systems is linked to increasing disposable incomes, a growing global population, and improved living standards. The enhanced spending capacity of consumers has led to a surge in demand for these appliances. High-end white goods such as refrigerators, washing machines, air conditioners, and cooking appliances are usually priced at a premium, targeting a demographic with substantial disposable income.

Global Home Appliances Market Restraints and Challenges:

Constraints on Market Growth Due to Worldwide Semiconductor Chip Scarcity

The worldwide scarcity of semiconductor chips, which began before the pandemic, has been a major obstacle affecting various global industries. This shortage was exacerbated during the pandemic by a surge in demand for electronic products coupled with disruptions in supply chains. These microchips are essential for enabling advanced features in appliances, such as connectivity with other smart devices or integration into innovative home systems, allowing control through smartphones. The heightened demand for consumer electronics led to supply chain challenges due to this microchip shortage, adversely impacting the electronics sector. The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has reported that numerous consumer electronics manufacturers are encountering production bottlenecks, and many companies are experiencing delays in fulfilling export orders.

Global Home Appliances Market Opportunities:

Wireless technologies such as Wi-Fi and Bluetooth, commonly associated with smartphones and tablets, are now being integrated into home appliances like air conditioners to attract tech-savvy consumers. The ongoing improvement in network infrastructure has led to a surge in broadband and internet accessibility, prompting consumers to opt for wireless and technologically advanced products due to their inherent convenience. The affordability of owning white goods, especially in developing economies, presents lucrative prospects for market expansion. Additionally, the anticipation of increased replacement sales in developed regions is poised to fuel market demand, driven by factors like rising per capita income and the rapid pace of urbanization.

HOME APPLIANCES MARKET REPORT COVERAGE:

Global Home Appliances Market Segmentation: By Product

• By Major Appliances

• Refrigerators

• Freezers

• Dishwashing Machines

• Washing Machines

• Cookers and Ovens

• By Small Appliances

• Vacuum Cleaners

• Small Kitchen Appliances (Food Processors, Air Fryers, Mixer Grinders)

• Hair Clippers

• Irons

• Toasters

• Grills and Roasters

• Hair Dryers

• Water Purifiers

The market categorizes products into Major Appliances and Small Appliances. In 2023, the major appliances segment accounted for over 75% of revenue. Market growth is expected to be driven by the adoption of seamless and efficient cooktops in the United States and Canada, demand for affordable chest freezers in Asia, and the increasing popularity of multi-air flow cooling refrigerators in Saudi Arabia and South Africa. Additionally, the major appliances segment is growing due to the rising demand for QuadWash dishwashers in France and Germany.

During the forecast period, significant growth is anticipated in the small appliances segment. Factors contributing to this growth include the increasing demand for blended drinks among European consumers, the rising popularity of zoom wheelchair clippers, and the demand for auto cut-off anti-dry protection electric kettles in France and Germany. Moreover, the market is propelled by the adoption of heat-resistant microwave ovens among consumers in Central and South America.

Global Home Appliances Market Segmentation: By Distribution Channel

• Supermarkets & Hypermarkets

• Specialty Stores

• Online/E-commerce

• Others

Distribution channels include supermarkets & hypermarkets, specialty stores, online/e-commerce, and others. The specialty stores segment held a significant market share in 2023, representing over 45% of global sales. This segment is expected to grow steadily in the coming years, offering specialized services, discounts, and coupon codes to customers.

While the specialty stores segment dominated in 2023, the online retail segment is poised for the fastest growth. Online platforms are gaining popularity for their doorstep delivery, free shipping, easy exchange & return policies, capturing market share, and increasing appliance sales. The rise in online sales is further fueled by changing consumer lifestyles, busy schedules, and the convenience of choosing products from home. Options such as EMI and finance facilities contribute to the surge in online sales.

Global Home Appliances Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

Asia-Pacific led in revenue share in 2023, surpassing 35%, driven by the growing demand for jet spray washing machines in emerging economies like India and China. The region's high consumption value of home appliances, particularly in countries like China, Japan, and India, contributes to higher revenues from small domestic appliances. The region's growing middle-class population, combined with increased kitchen appliance penetration, is expected to drive market growth. Japan's rising consumption of major and minor home appliances is also anticipated to stimulate market expansion. Industrial expansion and increased appliance production in China further contribute to market growth.

The European region is projected to maintain a significant market share due to the increasing demand for energy-efficient electronic appliances in countries such as the United Kingdom, France, and Italy. The region's growing trend of cooking activities is expected to drive further market growth.

COVID-19 Impact Analysis on the Global Home Appliances Market:

The COVID-19 pandemic has notably influenced the growth of the global home appliances market. Key industry players are adapting to the pandemic's challenges while striving to meet customer demands. Their focus is on adopting flexible operational strategies, accelerating the digitalization process, and establishing adaptable cost structures to strengthen their positions post-pandemic. The crisis has led to disruptions in supply chains, workforce availability, and alterations in consumer behavior, all of which have substantially affected various facets of the industry.

In 2020, numerous countries implemented measures to curb the spread of the coronavirus, causing significant interruptions in supply chains. While global factories resumed production around mid-2020, the persistent spread of COVID-19 and the emergence of new variants posed ongoing challenges for home appliance companies, particularly in supply chain management. The pandemic-induced labor shortages in manufacturing and logistics further exacerbated these challenges on a global scale.

Despite the setbacks caused by the pandemic, the global home appliances market is expected to rebound in the ensuing years. The pandemic-induced shift to home confinement, remote working, and homeschooling has spurred a rise in demand for consumer electronics and smart home appliances. The closure of physical retail outlets due to the pandemic has significantly driven consumers towards e-commerce platforms, leading to a surge in online home appliance purchases. In response, manufacturers of white goods are increasingly leveraging online channels to boost sales. A case in point is Samsung, the South Korean multinational conglomerate, which in September 2022 introduced its Ecobubble range of automatic top-load washing machines in India, exemplifying this strategic shift towards online retailing.

Key Players:

1. Haier

2. Whirlpool Corporation

3. Samsung Electronics

4. LG Electronics

5. Bosch

6. Sony

7. Midea

8. Hitachi

9. Electrolux

10. Philips

11. Videocon

12. Panasonic Corporation.