Home Appliances Market size was estimated at $689,140.2 Million in 2019 and is expected to reach $920,695.4 Million by 2027, growing at a CAGR of 4.1% during the forecast period of 2020 to 2027.
Home appliances are electrical appliances that assist in getting household chores done. Functions such as cooking, food preservation and cleaning are performed by these home appliances to take the workload off the owner. Three primary classifications of these appliances are – White goods or Major appliances, Brown goods or small appliances and Shiny goods or Consumer electronics. While brown goods require technical skills to be repaired, the white goods are the ones which need heavy tools and equipment to get it fixed.
Growth factors and trends
The home appliances market is already booming and is all set to grow further in the coming five years from now. An approximated growth of 5% in CAGR is expected in the next five years due to surge in demand. The factors behind such growth are an increased level of urbanisation and greater need for comfort. People prefer to rely on electronic appliances more to get the chores done so that they can do something financially productive at that time. Also, the fact that almost every member of the family goes out to work, such appliances help them save time. A per capita income rise is another major growth factor for the home appliances market. People earning more money would mean that they would chase comfort and luxury, in the pursuit of which they will end up investing in these appliances. Also, these products are regularly updated by a new version which ensures that the sale cycle continues. People with the older models would replace it with the new ones for updated features and importantly for greater energy efficiency. New models are always more energy-efficient than their predecessors. The key market players here are- Panasonic, Philips NV, Electrolux, Whirlpool Corp and Samsung Group. Also, more number of distribution channels such as supermarkets, hypermarkets, speciality stores, and e-commerce adds to its positive growth trend.
Home Appliances Market Growth and Trends
The increased demand for consumer durables globally due to the rapid increase in the growing population is a major factor contributing to the increase in the home appliances market growth. The economic development in the leading economies of the world has increased the purchasing power of the population increasing the market demand for home appliances. A high standard of living, improved quality of life, are a couple of other factors contributing to the increase in the home appliances market trend. Moreover, features such as smart functionality, efficiency, and diversity are key contributors to increasing market revenue.
Urbanization, increase in the construction of residential houses, great offers by the retailers, innovation, and introduction of AI (Artificial intelligence) gadgets are some of the reasons that have increased the home appliances market demand. The surge in the change in the customer lifestyle has also largely impacted the home appliances market growth. Also, the need for eco-friendly and energy efficient products is soaring with each passing day and this has hugely contributed to the increase in the home appliances market demand. High demand in the urban markets for LED tv’s, laptops, and air conditioners has majorly resulted in the home appliances market demand and growth. Continuous developments in the leading economies of the world have resulted in more employment opportunities which have increased the per capita income. This has brought immense changes in the lifestyle where customers are inching towards the luxury end with the purchase of smart appliances which has resulted in high market demand of the home appliances market growth.
The major hindrance to the growth of home appliances is the exceptionally high cost along with high competition.
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