Appliances Market Size, Share & Trends Analysis Report By Product (Personal Care, Home Appliances, Smartphones), By Region (North America, Central & South America, APAC, MEA), And Segment Forecasts, 2019 - 2025

Industry Insights

The global appliances market size was valued at USD 969.4 billion in 2016 and is projected to register a CAGR of 7.2% in the coming years. This growth can be attributed to the rising demand for modern and technologically upgraded household and personal care appliances. In addition, the growing popularity of e-commerce shopping portals due to discount packages and free delivery services is expected to have a positive impact on market growth over the forecast period. Furthermore, rising consumer spending and growing awareness regarding energy-efficient products across the emerging economies will propel market growth.

Easy availability of several household and kitchen appliances at lower prices, including refrigerator, air conditioners, and televisions owing to intense rivalry among the industry participants has also significantly benefitted the market across emerging nations, especially in Asia Pacific region. The rising need for safe and efficient appliances has made companies manufacture eco-friendly products with increased durability, efficiency, and lesser power dependence. Macroeconomic factors, such as changing consumer buying patterns, digitalization, and rising demand in emerging economies, are augmenting the revenue growth. Manufacturers are focusing on developing autonomous, smart appliances by integrating sensors and intelligent electronic control and machine programming concepts.

This is also expected to contribute to market expansion. Raw materials used in the production of the appliance include silicone, precious metals, plastics, and chemicals. Raw materials account for over 65% of the manufacturing cost of a final product. These raw materials have considerable negative environmental and social impacts including toxic gas emissions, mass-scale extraction of metals, and resource contamination. Regulatory bodies, such as the U.S. EPA, Energy Efficiency and Renewable Energy (EERE), Association of Home Appliance Manufacturers (AHAM), and American Society of Heating, Refrigerating and Air-conditioning Engineers (ASHRAE), have implemented regulations about the use of these products and related raw materials to ensure consumer safety.

The concept of managing and controlling home appliances through smartphone devices and the internet is gaining prominence, leading to the higher adoption of smart appliances. Additionally, manufacturers are shifting their focus towards revenue-oriented and high-margin smart connected appliances. These factors have given rise to intense competition, thus, making manufacturers develop innovative and convenience-oriented products.The rapidly growing popularity of several major Operating Systems (OS), such as iOS and Android, has also been a major driver. Android held over 80% of the global smartphone market share, while Android and iOS together held over 95% of the share in 2016.

Product Insights

In 2017, the smartphone product segment held the largest share of the market. Price, design, and operating systems are the most crucial parameters in the smartphone industry. The growth of mobile internet is projected to be dominant with a significant rise in smartphone sales across emerging economies, such as Africa and India, in the near future due to flexibility in social networking and unlimited communication facilities. Several innovations in smartphone technology are expected over the forecast period owing to fierce rivalry among android and iOS device manufacturers, which will help boost the market growth.

Home appliances held the second-largest share of the global market in the past. China, Germany, Italy, and Mexico are the major exporters of household products, such as air conditioners and televisions. The small appliances sector has witnessed robust growth in recent years with a rise in consumer disposable income, the increased popularity of e-commerce platforms, and rapid urbanization. Small appliances include coffee makers, vacuum cleaners, blenders, and room heaters among others.

Regional Insights

Asia Pacific was the leading regional market in 2017, in terms of revenue, and is expected to continue its dominance over the forecast period. The regional market is mainly characterized by products made in China, which dominate the APAC market volume share, and premium products manufactured by global companies. Consumers in the region are increasingly preferring low-priced, eco-friendly products. Thus, the kitchen appliances segment is projected to witness steady growth over the forecast period.

North America was the second-largest regional market in 2017. The home appliances segment in the region is characterized by the high revenue generated from the sale of products, such as refrigerators, dishwashers, washing machines, and stove hoods. Small-scale manufacturers of home appliances are being increasingly taken over by industry giants in the region. Moreover, major companies, such as LG, are focusing on innovations in the white goods sector to sustain in the market for a prolonged period.

Appliances Market Share Insights

The market is dominated by multinational companies. Competition among existing companies is growing due to technological innovations and rising middle-class population, especially in emerging markets. In addition, a rise in demand for energy-efficient devices and premium products is forcing them to invest more in R&D activities. A lot of companies are also focusing on M&A for an improved product portfolio. Some of the key manufacturers in the global industry include The Whirlpool Corporation, Electrolux AB, Haier Group Corp., BSH Hausgeräte GmbH, LG Corp., Midea Group, and Samsung Electronics Co. Ltd.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global appliances market report on the basis of product and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Home

    • Television

    • Washing Machine

    • Refrigerator

    • Air Conditioner

    • Others

  • Personal Care

    • Hair Care

    • Oral Care

    • Others

  • Smartphones

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

  • Europe

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Malaysia

    • Philippines

    • Singapore

    • Thailand

    • Vietnam

    • South Korea

    • Taiwan

  • Central & South America

    • Brazil

  • Middle East & Africa