Home Appliances Market Size (2024-2030)

The Home Appliances Market was valued at USD 720.59 billion in 2023 and is projected to reach a market size of USD 1,053.11 billion by the end of 2030. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 5.57%. 

An appliance is a gadget applied in household activities. Food preservation, cleaning, and cooking are instances of domestic tasks which are called household appliances. Every gadget is made to carry out particular tasks and comes with the technology required. Refrigerators, water heaters, stoves, washing machines, microwave ovens, induction cookers, dryers, dishwashers, and drying cabinets are all major appliances.

These gadgets are either electric, gas, or gas and driven by electricity. They save house help and homemakers substantial time by lowering the time and effort spent on domestic duties. By providing them more time, they can preserve their energy and become more productive, which saves money. They can achieve more in less time because they are more productive and well-facilitated.

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.

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.

Key Market Insights:

• Wireless technologies like Wi-Fi and Bluetooth can be utilised in or approached by smartphones and tablets. A technique of product differentiation by producers that is enticing tech-savvy customers is the involvement of these technologies in home appliances (like air conditioners). The modernisation of network infrastructure has modified into better broadband and internet penetration.
• Smart appliances provide advanced features and are very energy-efficient. The growth in consumer disposable income, high living standards, and the requirement for comfort encourage consumers to advance their current appliances to smarter versions, which is further anticipated to impact the market demand. Consumers extensively purchase home appliances as they provide ease, diminish efforts, and save time.
• 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.

Home Appliances Market Drivers:

• Growth in Consumer Spending Power and Enhancing Disposable Income

A home appliance is an electric appliance that helps in household operations such as cooking, washing, and cleaning, among other homemaking activities. Buying white goods, like refrigerators, cooking appliances, and washing appliances, heating & cooling equipment, is dedicated to increasing levels of disposable incomes, widening the global population, and bettering the living standards of the population. The rising expenditure power of customers led to a great demand for such gadgets. Brand-new white commodities such as refrigerators, washing machines, air-conditioners (AC), and cooking appliances are costly and can be afforded by a population with greater disposable income.

• Transition towards Technology and Eco-friendly Products

Tech-savvy users are ready to deploy smart home appliances that better their lives. The rapidly rising number of internet users has altered consumer behaviour and the retail landscape for this market. Modern technology developments for intelligent and energy-efficient appliances are significant factors that will escalate the market value. Key home appliance manufacturers highly emphasised initiating efficient appliances with intelligent services that increase energy savings to offer sustainable solutions for users. For example, in February 2021, Panasonic Holdings Corp., a company from Japan, made it public about the expansion of its AI-enabled appliances, involving connected refrigerators, air conditioners, and washing machines in India.

Home Appliances Market Restraints and Challenges:

• Shortage of Semiconductor Chip all over the world

The global chip shortage started pre-pandemic and disrupted numerous industries worldwide. The global chip shortage was prompted throughout the pandemic owing to higher demand for electronic gadgets and disruption in the supply chains throughout. Microchips permit appliances to have modern functions such as networking with other intelligent equipment or innovative home systems that permit users to control equipment using smartphones. Enhanced demand for consumer electronics led to a struggle in the supply chain owing to a microchip shortage in the market that detrimentally affected the electronics industry. As per the Consumer Electronics and Appliances Manufacturers Association (CEAMA), various manufacturers of consumer electronic appliances are experiencing bottlenecks in manufacturing and many organizations have fallen behind in terms of exports.

• Increasing scenarios of household appliance hazards/accidents

Appliances in homes are often backed by electricity or gas. These gadgets are significantly useless for customers in low- and middle-income countries due to inadequate infrastructure and a difficult approach to fuel or electricity. Moreover, allegations of harmful radiation from gadgets and short circuit problems with electricity-powered gadgets have surfaced. Individuals are experiencing emotional stress because of technological glitches with smart appliances. These could have horrible results, involving personnel and property damage and fire. Hence, the industry's development will be affected by safety issues over household appliances.

Home Appliances Market Opportunities:

• The introduction of advanced household appliances 

Customers are becoming more conscious of climate change and global warming, which inspires them to use eco-friendly and energy-efficient items, such as home gadgets. Technological advancements and product innovation have generated sophisticated, intelligent, eco-friendly, and energy-efficient household appliances. Time, money, and the environment are all preserved by these items. The players' consistency in investments in innovation through research and development helped the market's expansion. Furthermore, the market will benefit from the suitable climate the government authorities have offered with supportive laws and regulations.

HOME APPLIANCES MARKET REPORT COVERAGE:

Home Appliances Market Segmentation:

Home Appliances Market Segmentation By Type:

• Major Appliances
• Small Appliances
• Smart Home Appliances

The demand for household appliances has enhanced into a global industry. With enhancing disposable income, wider spaces, and access to electricity, household appliances are now more cost-effective for a large share of the global population to help with daily household chores. Connected equipment has evolved into the market, and most devices are linked to the internet to automate activities with minimum human intervention.

The latest trend of smart homes, integrated with the rising focus of major companies to develop and introduce innovative and connected home appliances, is estimated to fuel the market's development. Demand for smart white goods is directed by various factors such as the rising penetration of smart homes, increasing home development projects, and quick IT and wireless communication advancements. Escalating home improvement projects in economies such as the United States, Canada, and Germany are making their way for unique innovative products for residential applications.

Home Appliances Market Segmentation By Distribution Channel:

• Supermarkets & Hypermarkets
• Specialty Stores
• Online
• Others

The Specialty stores segment held a major home appliances market share in 2023, holding more than 45% of global sales. The segment is anticipated to grow steadily over the future years. Specialty stores offer customers personalised services along with many discounts and coupon codes.

Though the specialty stores segment held the largest market share in 2023, the Online retail sector is also expected to develop at the fastest rate. Online platforms have become famous as they offer doorstep delivery with free shipping and comfortable exchange & return offers to capture the market share and raise appliance sales. Another major element for the growth in online sales is the quickly changing lifestyles of consumers, where the dominant fall under the functional category and have hectic schedules. The customer can opt for the good from the comfort of home, lowering time, and there is no necessity to go in person, as all various products are listed on the website and applications. The growth in online sales is further propelled by options such as EMI and finance options.

Home Appliances Market Segmentation By Region:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

North America is mainly driven by the huge import of multiple appliances, including refrigerators and washing machines in the U.S. and Canada, thereby encouraging the consumption rate of these gadgets. It is the world's biggest regional economy and is expected to remain a primary region in the global economy for the predictable future, primarily for developing new technologies. The high spending power of consumers, growing adoption of smart appliances, and important consumer demand for linked home appliances will propel the consumption rate of IoT-based appliances in the region.

COVID-19 Impact Analysis on the Home Appliances Market:

The global supply chain of the primary home appliances and consumer electronic brands was disrupted by COVID-19. China was one of the biggest consumers and manufacturers of various home appliances and consumer electronics items, but it also catered to a huge range of nations by exporting several input supplies that were significantly used to make finished goods. The shutdown of the manufacture in China forced other consumer electronics makers based in the United States and Europe to pause production of the finished goods. This increased the supply and demand gap.

Latest Trends:

• Increasing Traction towards Smart Home Appliances

Intelligent home appliances install modern technologies, such as artificial intelligence, the Internet of Things, touchless tech, and integrated smart home tech, that give consumers several advantages such as safety, security, and convenience for their homes. The great potential for development in electronic appliances with creative features owing to the enhancing demand from high-tech users globally is pushing the market development of smart home appliances.

The accelerating use of smart home appliances, like bright air conditioning/external units, Heating, Ventilation, and Air Conditioning (HVAC), smart refrigerators, and cooking appliances, that offer energy consumption efficiency concerning customer usage is escalating market expansion. For example, LG Electronics, a company from South Korea, started a variety of intelligent appliances with AI technology in India. The new lineup consists of the latest Insta View door-in-door refrigerators, AI direct-drive washing machines, and air conditioners that lead to energy efficiency.

Key Players:

1. Whirlpool Corporation
2. Samsung Electronics Co. Ltd.
3. Haier Inc.
4. Bajaj Electricals Ltd
5. Koninklijke Philips N.V.
6. IFB Appliances
7. KENT
8. Eureka Forbes Ltd.
9. Panasonic Holdings Corporation
10. Orient Electric