Range Hood Market Size, Share & Trends Analysis Report By Product Type (Under Cabinet, Wall-mounted, Ceiling Mount), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2020 - 2025

Report Overview

The global range hood market size was valued at USD 10.71 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2025. Technological advancements along with rising usage of IoT in kitchen hood devices are expected to be the key factors boosting the market growth. Manufacturers are focusing on developing innovative devices owing to consumer preference for smart features, such as noise reduction, wireless connectivity, and installation of temperature, optic, and infrared sensors, in the products.

For instance, manufacturers use multiple insulation layers, sound absorbing base, and filtration system motors to reduce noise. This factor is also likely to contribute to the market growth. In addition, changing lifestyles due to busy work schedules along with increasing number of hotels and food chains, particularly in developing countries like India and China, are driving the market.

Stringent regulations by various regional governments regarding the cleanliness and hygiene in restaurants and food chains have mandated the installation of range hoods, which is also boosting the market growth. Moreover, these devices offer added advantages, such as heat reduction, maintenance of air quality, and increased safety.

On the other hand, high maintenance cost and availability of substitutes, such as exhaust, are anticipated to hamper the growth of the market. However, the manufacturers are focusing on product development and cost reduction, which will support product demand. For instance, UL710 Type 1 hoods launched by North American Kitchen Solutions, Inc., operate without a factory cut duct connection, resulting in reduced operational costs.

Range Hood Market Trends

Changing lifestyles, exposure through traveling, and global design innovations have set the pace for new modern standards of living. With higher spending capability as well as improved infrastructure facilities, the need for comfort in the kitchen has triggered a positive impact on the market.

With rising home prices, consumers are increasingly investing in home improvement or home remodeling projects to revamp their traditional houses. The U.S. economy steadily expanded with rising home price growth and low unemployment from mid-2009 to 2019, thereby putting more equity in the pockets of homeowners and downward pressure on the number of homes in negative equity.

Kitchens and baths continue to be the most popular renovation projects, even though they are the priciest and involve a lot of work. With an increasing number of families considering the kitchen as a central gathering place in the home, the focus on renovating and improvising the area has been growing. For instance, the 2019 U.S. Houzz Kitchen Trends Study found that spending on both median and large kitchen remodels increased by 10% from 2018.

Rapid construction in the commercial segment, particularly the hospitality sector, is also driving the demand for kitchen range hoods. The hotel industry is a key supporting factor to the region’s hospitality sector, driving the construction of more hotels. The booming tourism and real estate industries, accompanied by various infrastructural developments in the hospitality sector, will continue to spur the market for kitchen ventilation over the forecast period.

According to Hospitalitynet.org, in 2019, 1,017 new hotels/118,674 rooms opened in the U.S., a 2.2% growth in new supply, bringing the total U.S. census to 57,903 hotels/5,486,909 rooms. Additionally, a total of 1,704 hotels with 364,274 rooms are planned to open across North America in the coming years as per a blog by TOPHOTELPROJECTS.

Furthermore, the rising trend of food away from home is building lucrative growth opportunities for restaurants and eating joints. These eating places are creating a greater need for range hoods and related appliances. The growth of quick-service restaurants (QSR) is generating greater demand for cooking appliances such as fryers, grills, and cooking tops. The usage of these cooking appliances creates high amounts of moisture and heat in the environment, which has resulted in greater market opportunities for range hoods in these fast-food joints.

Fluctuations in the prices of copper, steel, and glass act as a major restraint on market growth. These raw materials have a wide application scope in the range hood market and raw material price trends have a direct impact on the market.

Product Type Insights

Under cabinet hood segment held the highest market share of 41.42% in 2019. Under cabinet hood is the most widely used product type owing to its easy installation and affordability and compatibility with different kitchen designs. Moreover, the duct transports the smoke and particles out of the kitchen whereas other ductless versions recirculate the air into the kitchen. Ceiling-mount hood segment is expected to register the fastest CAGR over the forecast period. This product type is also known as island hood as it is not attached to the wall and is installed over the stove. This device type is gaining popularity owing to its stylish and sleek designs.

Distribution Channel Insights

The offline distribution channel segment accounted for the highest market share in 2019. It is further expected to maintain its leading position throughout the forecast period due to the availability of a wide variety of products to choose from and the advantage of checking the products before buying. Moreover, the majority of the leading companies have their own specialty stores across the globe, which contributes to the segment growth.

The online segment, however, is anticipated to expand at the highest CAGR of 4.5% over the forecast period. Rising popularity of e-commerce and usage of smart devices including mobile phones and tablets are expected to be the key growth-driving factors. Moreover, benefits offered by online portals, such as discounts, easy payment options, and free installation services, will drive the segment further.

Regional Insights

North America accounted for the highest range hood market share in 2018 and is projected to expand further at a steady CAGR from 2019 to 2025. Quick adoption of advanced technologies in the region and resultant demand for connected and smart devices, especially in countries, such as Canada and Mexico, are the key market drivers. Asia Pacific is expected to be the fastest-growing regional market with a CAGR of 5.0% from 2020 to 2025.

Continuous expansion of the residential sector on account of the increasing number of households, coupled with major home improvement projects undertaken by consumers in the country, is boosting the demand for range hoods in the U.S. According to the National Association of Home Builders (NAHB), 82% of the remodelers in the U.S. ranked kitchen renovation as their top job as of 2019. Consumers are likely to invest in high-end kitchen appliances that complement their kitchen décor.

According to the Leading Index for Remodeling Activity, home improvement spending in the U.S. is rising at ~6% annually. In addition, homeowners are investing more in lifestyle-enhancing projects than in traditional maintenance tasks. Moreover, the rising trend of millennials buying homes, particularly older homes, is driving the need for more repairs. According to a study by HomeAdvisor, millennials are investing in a higher number of home improvement projects each year compared to other age groups. This rising trend will boost the demand for range hoods in the U.S.

Increasing consumer spending capacity and high demand due to increasing awareness about the product benefits are accelerating the growth of the market in the Asia Pacific region. The increased need for convenient cleaning solutions due to the growing number of working individuals, especially in developing countries like India and China, is also driving the product demand. Moreover, with rapid urbanization and the popular trend of small and compact homes in the region, consumers prefer convenient kitchen designs, such as modular patterns, which is expected to drive the demand further.

Key Companies & Market Share Insights

Some of the leading companies in the global market include Asko Appliances; Broan, Inc.; BSH Home Appliances Corp.; Elica S.p.A.; Faber S.p.A.; Falmec S.p.A.; Miele, Inc.; Panasonic Corp.; Samsung Electronics; and Whirlpool Corp. These companies focus on product modification with respect to additional features and functionality. For instance, Faber had introduced a new concept of chimney without filter, which makes lesser noise than other products and does not require regular cleaning.

Range Hood Market Report Scope

Global Range Hood Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global range hood market report on the basis of product type, distribution channel, and region.

• Product Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Under Cabinet

  • Wall Mounted

  • Ceiling Mount

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa