NEW YORK, Jan. 30, 2023 (GLOBE NEWSWIRE) -- According to a recent IndexBox report on the global domestic appliance market, here are some interesting takeaways.
Market Overview
The global household appliance market is forecast to grow from $394B in 2022 to $460B in 2030, rising at a CAGR of 2.0% over the forecast period. The main drivers for this growth are expected to be an increase in demand from the construction and renovation sector, especially in Asia and Europe, growing middle class in Asia, rising incomes and standards of living in developing countries.
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In addition, there will be a continued shift towards energy-efficient appliances, which will help to decrease costs for consumers. The need to reduce carbon footprints and save on energy bills is encouraging consumers to switch to energy-efficient appliances. The advent of smart home technologies is another factor stimulating the growth of the domestic appliance market. Smart appliances offer features such as remote control, voice control, and automated operation, which are attracting consumers.
Market Challenges
One of the primary challenges facing the home appliance market is intense competition. There are a large number of manufacturers operating in the space, all vying for market share. This competition often leads to price wars, which can erode margins and profitability. Additionally, many companies are turning to online channels to sell their products, which further intensifies the struggle.
Another problem is unstable consumer preferences. As incomes rise and lifestyles change, consumers are increasingly looking for appliances that offer more features and functionality. This shift has led to a decline in demand for some traditional products, such as clothes irons and sewing machines. Manufacturers must be able to adapt their product offerings to meet changing consumer needs or risk losing market share.
Finally, the global economic environment presents a challenge for the market. Rising interest rates and trade tensions could lead to slower economic growth, which would impact demand for appliances. Additionally, currency fluctuations could result in higher prices for imported domestic products.
US Market
In the US, consumers are spending more on premium appliances such as built-in refrigerators and dishwashers. In addition, the popularity of smart home technology such as washing machines and dryers that can be controlled via a mobile application is growing robustly. Online retailers like Amazon offer competitive prices on a variety of home appliances, making them an attractive option for consumers looking for low-cost solutions.
Despite the overall positive outlook, there are some challenges that could hinder growth in the North American domestic appliance market. Trade tensions between the US and China are causing tariffs on imported appliances, which is resulting in higher prices for consumers.
Asia-Pacific Market
Energy-efficient appliances are becoming increasingly popular in the Asia-Pacific region due to the growing awareness about environmental issues and the need to reduce carbon footprints. To reduce waste generation and encourage resource conservation and environmental protection, China's government enacted 'Circular Economy Promotion Law' in 2008. As a result, manufacturers are launching energy-efficient models of existing products. For instance, LG Electronics presented its first ever line of refrigerators designed to automatically adjust their settings based on user behavior and optimize power consumption.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
LG Electronics, Samsung Electronics, Panasonic Corporation, Robert Bosch GmbH, Haier Group Corporation, Electrolux AB, Midea Group Co., Ltd., Whirlpool Corporation, Siemens AG
Sources
World – Domestic Appliances - Market Analysis, Forecast, Size, Trends and Insights
EU - Domestic Appliances - Market Analysis, Forecast, Size, Trends and Insights
Asia - Domestic Appliances - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Domestic Appliances - Market Analysis, Forecast, Size, Trends and Insights
