The Household Appliances market was one of the few markets that withstood the onslaught of the COVID-19 pandemic. In fact, the pandemic has had a positive impact on the market, with revenues growing 8.4% YOY in 2020 and 8.1% in 2021, fueled by the increasing use of home appliances in the wake of infections and because consumers spent significantly more time at home. To illustrate this with some concrete numbers, Whirlpool, one of the most well-known names in the U.S. consumer appliances industry, reported decade-high net sales of almost US$22 billion in 2021. In the same year, Swedish appliance manufacturer Electrolux generated around US$14 billion in revenue, its highest revenue over the past decade.
The market consists of two segments, which are both driving its growth. First, there is the Major Appliances section, which includes more expensive appliances that are replaced less frequently, such as refrigerators, stoves, and ovens. Second, there is the Small Appliances section, which is contributing the most to volume sales. Small appliances have a shorter lifespan, and, typically, consumers are readily persuaded, or even eager, to upgrade to a newer model.
Interestingly, the popularity of household appliances differs between geographical regions. In countries such as the U.S. and Canada, for example, coffee machines are more popular than freezers and dishwashing machines, with a 68%–69% penetration rate, according to the findings of the Statista Global Consumer Survey conducted in early 2022. In the East, by contrast, in mainland China and India, for example, the penetration rate of coffee machines is still in the low 20s, whereas the penetration of products such as freezers is comparatively higher.
Smart technology solutions, such as connected / IoT-enabled refrigerators and washing machines are expected to be key growth drivers in developed economies in the medium term. Meanwhile, growth in developing economies is likely to be fueled by growing disposable incomes as well as a rising awareness of household appliances and the consequent increase in penetration. Additionally, hybrid home/office working models are also expected to have a positive impact on the market in the short to medium term.
Key players in this segment include the Midea Group, Whirlpool, AEG, Bosch, Siemens, Gree, and Electrolux.
