When it comes to household appliances, we can broadly classify it into three categories. The first one being major appliances or white goods, the second one is small appliances and the third one is consumer electronics.
Talking about the growth of the global household appliances industry, it is expected to rise in the next 5 years, as experts see it. The factors that are going to drive this growth include product innovation, product enhancement, and portfolio extension.
As per reports and market analyses, the competition among the sellers has increased significantly. This is because the market is now driven by the advancement of technology and ever-evolving customer preferences. Design improvement, enhanced performances and high-end features are some of the reasons behind the augmentation of global household appliances market growth in the coming few years.
Some factors behind the growth
In 2017, the global household appliances market was evaluated at $501,532 million which is expected to rise to $763,451 by 2025. Some factors that would contribute to this growth would include:
- Technological advancements
- Increasing urbanization
- Growth in the housing sector
- Increasing per capita income
- Improvement in the living standards
- Enhancement in consumer’s lifestyle
- The inclination of the customers towards energy-efficient and eco-friendly applications
These, along with an increasing number of smaller households at a global level, has impacted the growth of the industry more positively.
With the increase in adoption to multi-functional and advanced products, there has been a positive impact on the growth of the industry. To save time and money, consumers are now diverting their choices to products that serve different purposes altogether. Having these products are convenient for all and thus sellers are also trying to innovate these so that they can increase their customer base. For example, you would now find the best vacuum cleaners with multi-functional options, so that you can clean the toughest corners of your house with them. They are not only easy to handle but are made as per customer convenience to cater to their busy lifestyle.
It is expected that the small appliance market will grow at a rapid rate in the Asia-Pacific region. Developed countries here are expecting an increase in their sales figure when it comes to smart appliances. This can be owed to some major factors like increasing energy and labor cost, improvement in the purchasing power of the customers along with the desire to go with smartly integrated appliances.
The fastest-growing type
After some research it has been found that refrigerators are the first purchased appliances when income level increases to a sufficient point. This is followed by washing machines. As a huge percentage of these products are already in use, thus market advances for products like freezers, dishwashers and clothes dryers would not be as strong as expected. The demand for freezers in the low and middle-income countries would be boosted where usage pattern is typically low. The comparative price of separate freezers are quite low and that would drive the gains as well. But the demand for the same in the developed countries are quite low and this would prevent the overall demand from growing at a faster pace.