The home appliances market witnessed a valuation of USD 720.59 billion in 2023, with projections indicating a substantial growth trajectory to reach USD 1100.4 billion by 2031, reflecting a compound annual growth rate (CAGR) of 5.57% throughout the forecast period. The market's expansion is primarily driven by the burgeoning demand to enhance individuals' lifestyles, buoyed by robust per capita income expenditure. However, market growth may face hindrances due to the escalating demand for household appliances in North America and Europe. Nonetheless, the market is poised for development, buoyed by factors such as population growth and the ongoing trend of urbanization. These insights are drawn from the comprehensive analysis presented in the "Home Appliances Market, 2024-2029" report by Fortune Business Insights™.

Information Source: https://www.fortunebusinessinsights.com/home-appliances-market-107020  

List of Key Players Profiled in the Home Appliances Market Report:

• Koninklijke Philips N.V. (South Korea)
• IFB Appliances (India)
• KENT (India)
• Eureka Forbes Ltd. (India)
• Panasonic Holdings Corporation (Japan)
• Orient Electric (India)
• Whirlpool Corporation (U.S.)
• Samsung Electronics Co. Ltd. (South Korea)
• Haier Inc. (China)
• Bajaj Electricals Ltd (India)

Report Coverage

The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.

Drivers and Restraints

Increasing Disposable Incomes to Progress Market Development

The anticipated growth of the home appliances market is driven by rising consumer spending and increasing disposable income among the population. Leading manufacturers have prioritized the development of energy-efficient appliances aimed at saving energy and maximizing efficiency. The market is propelled by the adoption of new technologies and the growing demand for environmentally friendly products. In February 2021, Panasonic Holdings Corp. unveiled plans to expand its range of AI-enabled appliances in India, featuring connected refrigerators, air conditioners, and washing machines.

Despite these positive trends, the market growth is likely to be hampered by a shortage of semiconductor chips.

Factors Affecting the Growth of the Home Appliances Market:

• Technological advancements: Advancements in technology play a significant role in driving the growth of the home appliances market. As new technologies emerge, consumers are attracted to innovative features and improved functionalities in home appliances. This includes smart appliances with connectivity options, energy-efficient models, advanced sensors, and automation capabilities.
• Changing consumer lifestyles: Changing lifestyles and increasing disposable incomes have a direct impact on the growth of the home appliances market. As people seek convenience and time-saving solutions, the demand for appliances like washing machines, dishwashers, microwaves, and robotic vacuum cleaners increases. Additionally, the trend of modular kitchens and the desire for aesthetically pleasing appliances also drive market growth.
• Urbanization and population growth: The rapid pace of urbanization and population growth contribute to the expansion of the home appliances market. In urban areas, there is a higher demand for appliances due to smaller living spaces and a busy lifestyle. Furthermore, the growing middle-class population in emerging economies also drives market growth as more households can afford home appliances.
• Energy efficiency and sustainability: With increasing environmental concerns, energy efficiency and sustainability have become crucial factors in consumers' purchasing decisions. Energy-efficient appliances not only help reduce utility bills but also have a positive environmental impact. Governments and regulatory bodies across the globe are implementing energy efficiency standards, which further drive the demand for eco-friendly home appliances.
• E-commerce and online retail: The rise of e-commerce and online retail platforms has revolutionized the home appliances market. Consumers now have access to a wide range of products, competitive prices, and convenient delivery options. Online platforms provide a platform for manufacturers and retailers to reach a larger customer base, driving market growth.
• Replacement and upgrade cycles: The replacement and upgrade cycles of home appliances also contribute to market growth. As appliances age or become outdated, consumers tend to replace them with newer models featuring advanced technologies or improved energy efficiency. Additionally, lifestyle changes, such as moving to a new house or renovating, often prompt consumers to upgrade their appliances.
• Government initiatives and incentives: Government initiatives and incentives aimed at promoting energy efficiency and sustainable practices can significantly impact the home appliances market. These may include tax benefits, subsidies, rebates, and awareness campaigns encouraging consumers to opt for energy-efficient appliances. Such initiatives create a favorable environment for market growth.
• After-sales services and warranties: The availability of reliable after-sales services and warranties also influences the growth of the home appliances market. Consumers are more likely to purchase appliances from manufacturers or retailers that offer comprehensive after-sales support, including maintenance, repairs, and extended warranties. This instills confidence in consumers and encourages them to invest in home appliances.

Segments

Smart Home Appliances to be the Prime Part Due to Digitalization

Categorized by type, the home appliances market comprises major appliances, small appliances, and smart home appliances. Among these, the smart home appliances segment commands the largest share due to factors such as the prevalence of spacious residences, rising disposable incomes, and affordability. Furthermore, the growing digitalization trend and the increasing popularity of smart homes worldwide are expected to further bolster the market share of smart home appliances.

Specialty Stores to Dictate Due to Various Discounts Offered to Customers

North America to Lead the Market Share Due to High Spending by Consumers

North America is poised to dominate the home appliances market share, fueled by robust consumer spending. In 2021, the market in the region reached USD 209.7 billion, buoyed by significant demand from countries like Canada and the U.S., driving the uptake of smart devices. The region is witnessing a surge in the adoption and consumption of high-efficiency, aesthetically enhanced, and insulated appliances, further fueling market growth.

Meanwhile, the Asia Pacific region is anticipated to experience substantial growth during the forecast period, driven by escalating demand for energy-efficient appliances. Countries such as India and China are expected to drive this demand surge significantly.

In Western European countries, the uptick in construction activities is driving an increased adoption rate of advanced appliances. The region is witnessing a growing appetite for innovative products and advanced appliance solutions, presenting lucrative opportunities for market growth.

Competitive Landscape

Technological Innovations by Key Players to Drive Market Progression

The market has various players who focus on new brands, product launches, and partnerships. Manufacturers have been focusing on the development of innovative products for increasing their customer base for more revenue generation. In May 2022, Hisense launched its new range of smart home appliances, which are Wi-Fi enabled in the Middle East. In February 2022, Crompton Greaves Consumer Electricals announced the acquisition of a small household appliances manufacturer, Butterfly Gandhimath Appliances Ltd. to support its small domestic appliances category.

Key Industry Development

• August 2022- Maytag launched its new laundry washer-dryer system, which is designed for the removal of towels, blankets, clothes, and other household fabric items of pet hair. Maytag is a brand of Whirlpool.