A home appliance, also referred to as a domestic appliance, an electric appliance or a household appliance, is a machine which assists in household functions such as cooking, cleaning and food preservation. Collectively, their effect on industrial society has been to eliminate the drudgery and drastically reduce the time long associated with housekeeping and homemaking. The trend toward using automatic and powered household implements to ease basic housekeeping chores, once established, soon extended into such additional fields as personal hygiene and grooming. Household appliances can be distinguished into three categories small appliances, major appliances and consumer electronics. Major appliances are huge home appliances which are used for housekeeping tasks and for optimizing the room conditions which includes temperature fluctuations, washing clothes, cooking and others. They are acquired with connections such as plumbing, electrical, gas and ventilation arrangements which further reduces the mobility of these appliances. Small appliances or semi-portable machines are basically used on various platforms such as table-tops and counter-tops. Some of these appliance’s examples are humidifiers & de-humidifiers, blenders, air purifier, iron, cloth steamers, coffee & kettle electric and others. Consumer electronic devices consist of communications, entertainment devices along with house office activity systems for example music system, TVs, computers and others. They are available readily in the market through different distribution channels like the newly popular and reliable e-commerce, speciality stores etc.
Growth in technological advancements, rising per capita income, surging need for comfort in households’ sectors, changing consumer lifestyle, enhanced living standards, fast urbanization along with increasing housing sector and the escalating number of small households are the major factor driving the growth of the market. The market is considerably driven by trends such as effectiveness, diversity, sustainability, and elegant design and smart functionality of home appliances. Various advanced technologies have upsurged the development of home appliances and is anticipated to drive the market in the near future. Smart appliances supply with various advanced features and are known to be more energy efficient. Consumers generally purchase home appliances as they provide ease with less efforts and also saves time. These factors led to the market growth. Furthermore, innovation of products, differentiation of products along with implementation of various value-added features are anticipated to increase the market demand over the forecast period of home appliances. Moreover, the market is forming new trends in terms of efficient energy and sustainability which further untangles various households’ tasks. In addition, inclination of consumers toward eco-friendly & energy-efficient appliances further boosts the market growth. Moreover, factors, such as government initiatives for energy-efficient appliances across the U.S. and several EU countries, are expected to facilitate the adoption of energy efficient appliances in the recent years. Attractive offers by online retailers, power innovation for AI-driven gadgets, and significant investments towards the acquisition and product development are growth opportunities for the market.
This pandemic has disrupted the supply chain of the home appliances and consumer electronic brands. The Covid induced lockdown forced population to stay at home. The shutdown of the production in China forced other consumer electronics makers based in the United States and Europe to temporarily hold the production of the finished goods which led to an increase in the supply and demand gap. The lockdown gave an opportunity for e-commerce market to grow at an unprecedented rate. It also changed the shopping habit of people. While they were hesitant earlier to buy products online, they now do the same in the blink of an eye supported by offers, discounts and other attractive conditions provided by the companies. Continuance of work from home culture and lectures/classes being conducted online supported the demand of goods that enhance convenience at home, such as refrigerators, electric cooking appliances, washing machines and ACs. This growth was primarily driven by pent up demand and the festive season in Q3FY21 in particular aided the growth.
One of the major sales point of home appliances are small retails stores and supermarkets. While big players were not much impacted, the impact of the COVID-19 crisis on the retail sector tends to be heterogeneous and depend on the combined effect of certain characteristics. First, the effect of social distancing measures on individual retail businesses depended on whether they are deemed essential. Second, lockdowns and social distancing measures affect retailers with physical stores more than online retailers. Consumer preference more towards ecommerce reduced the footfall at other supermarkets and small retail stores.
The report analyses of the home appliances market based on product type, distribution channel and by geography.
By product type, the global home appliances market is segmented into major appliances, small appliances and consumer electronics. Of the major appliances also known as white goods, refrigerator segment is one of the major segments due to the availability of smart and energy-efficient refrigerator units, the growing disposable income, and the widening base of nuclear families. Refrigerators are known to be easy, safe and convenient way to safe and preserve food and various food products. Single door refrigerators are the highly used door types as they are cost effective, very easy to use. The French door refrigerators are also gaining popularity due to ease of usage and advanced features introduced in these refrigerators. Moreover, key players are inventing new models that have less impact on the environment. Stopping the usage of old refrigerators and regular services are likely to lessen toxic emissions which further reduces environmental pollution. Small appliances are portable or semi-portable machines, generally used on table-tops, counter-tops or other platforms, to accomplish a household task. They are used in various tasks such as beverage making, cleaning, cooking, lightning, or thermal comfort. With the increased population and now more than ever trend of nuclear families, these small appliances find extensive applications. The number of coffee drinkers in the world is constantly increasing and so the coffee makers are one of the most bought items among the small appliances. They accounted for US$12,189.4m in 2021 and in global comparison, most revenue is generated in the United States (US$3,816m in 2021).
Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. They are for leisure and entertainment rather than purely practical tasks and include devices used for entertainment, communications and recreation. Compact discs were one of the most popular product in the past which is now being comfortably taken over by modern television sets which come with exciting technological advancements such as connections to internet via Wi-Fi, Bluetooth, and Ethernet etc. The energy consumption of consumer electronics increases – in America and Europe – to about 50% of household consumption, if the term is redefined to include home appliances such as refrigerators, dryers, clothes washers and dishwashers.
The home appliances market by distribution channel is classified into e-commerce, supermarket & hypermarket, specialty stores, others. The e-commerce segment is expected to be a major player of the market over the forecast period due to a boom in the penetration of smartphones, tablets and laptops. The unfortunate lockdown has had a major impact on the growth of the e-commerce sector. As lockdowns became the new normal, businesses and consumers increasingly went digital, providing and purchasing more goods and services online, raising e-commerce’s share of global retail trade from 14% in 2019 to about 17% in 2020. Furthermore, specialty store segments is expected to dominate the market in the near future due to consumer preferences in analyzation and evaluation of the product before purchasing procedure. This is due to various products associated with high financial and safety benefits.
The retail sector is of paramount importance across OECD countries. It operates as a gateway to consumers from upstream sectors, accounts for almost 5% of GDP, and employs about 1 in 12 workers. COVID-19 has dramatically disrupted the sector. Consumers tend to shift to e-commerce due to factors such as, the effect of social distancing measures on individual retail businesses depending on whether they are deemed essential, and lockdowns and social distancing measures affecting retailers with physical stores more than online retailers.
Geographically, the home appliances market is studied across the countries of key regions such as, North America, Europe, Asia Pacific and the rest of the world regions which includes Latin America, and Middle East & Africa. The North American market is further categorized into US, Canada and Mexico, the European market into Germany, France, Italy, Spain, UK, and Rest of Europe, while the Asia Pacific market is classified into China, India, Japan, South Korea and Rest of APAC. North America is considered to be the homogenous market for the household appliances along with high product penetration. The demand for household appliances is dominated due to replacement of products. European market is experiencing increment due to their good economic situation and low interest rates. The market is observing a growth in demand for premium integrated appliances which includes flexible induction hobs, implemented hob extractors also built-in dishwasher among others. The market for home appliances in the Asia-Pacific region is largely dominated by regional brands, including Haier, Midea, Gree, Hisense from China; Samsung, and LG from Korea; Panasonic, Sharp, and Hitachi from Japan; and Videocon from India. The smart appliances market in Asia-Pacific is expected to grow at a rapid rate. Developed countries like Japan, Singapore, Hong Kong are expected to register an increase in the sales of smart appliances, mostly owing to the rising energy and labor costs, the high purchasing power of consumers, and greater awareness about smart cities and smart integrated appliances. China has the highest demand for conventional air conditioners, by volume, across the globe, owing to government policies that favor energy-saving appliances, a growing property market, and hot weather.
Some of the major players operating in this market include, Qingdao Haier Co., Ltd. (Haier), AB Electrolux, SEB, Midea Group Co., Ltd. (Midea), Sharp Corporation (Sharp), Hitachi Ltd., LG Electronics Inc. (LG), Samsung Electronics Co. Ltd, Panasonic Corporation (Panasonic), Videocon, Robert Bosch GmbH and Whirlpool Corporation.
The report analyses of the home appliances market based on product, distribution channel and by geography. The market is bifurcated into major appliances, small appliances and consumer electronics based on the product type. Refrigerators are expected to be a major player in the major appliance sector owing to their various advantages and the coffee makers are expected to be a major player from the small appliance department. The home appliances market by distribution channel is classified into e-commerce, supermarket & hypermarket, specialty stores, others. The ecommerce segment is expected to be a major player due to rapid increment over the forecast period due to high amount of penetration of smartphones along with the internet and the advancement in technologies. Geographically, the home appliances market is studied across the countries of key regions such as, North America, Europe, Asia Pacific and the rest of the world regions which includes Latin America, and Middle East & Africa.
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