Electrical appliances are defined as devices which use electricity to perform specific functions. A wide range of such appliances include refrigerators, wine-coolers, washing machines, tumble dryers, vacuum cleaners, steam mops, shavers, trimmers, water heaters, air conditioners, air coolers, heaters, fans, rice cookers, bread makers, toasters, irons, and juicers. A large number of companies across the world manufacture and sell such appliances, providing customers with a range of options.

global electrical appliances market

Changing lifestyles driven by higher household income is a major driving factor of the global electrical appliance market

One of the primary drivers of the market is higher standards of living, especially in the Asia Pacific region. As the average monthly income of households has increased, they have been able to make purchases beyond the basic human necessities. This has led households to purchase electrical appliances, which have historically been looked upon as luxury items. Another major factor driving the global electrical appliances market are the lucrative offers and the easy availability of credit schemes to purchase them. In fact, the purchase decision of nearly 70% of potential customers is positively influenced by the presence of such offers.

The global electrical appliance market faces uncertainty regarding supply of raw materials

A major threat facing the global electrical appliances market is the fluctuations in the supply of raw materials. While companies are capable of absorbing considerable amounts of fluctuations in the product price, the instability of raw material supply can affect production as well as demand, and hence, the associated revenue, profits, and R&D investments of the companies. Another threat includes the rise of smart appliances, robots, and connected living. Electrical appliances specifically designed for such purposes present a threat of extinction to the conventional models of various electrical appliances.

Another major restraint of the global electrical appliances market is the consistent and considerable R&D investment required to develop new, more efficient, environment-friendly, smart, and connected appliances. It is a highly competitive market coupled with increasingly stringent government regulations regarding emissions of environmentally harmful chemicals. In such a scenario, the constant improvement of products is important, though this is mostly possible only by larger companies such as Whirlpool Corporation, Haier Group, and LG Electronics Inc.

Opportunities present in the market include product differentiation, new product development, and expansion of retail chains

The major opportunities in the global electrical appliances market exist in product differentiation and new product development. Almost all the companies focus on providing a wide range of products to meet the needs and price affordability of consumers from different economic strata. This in turn creates the need for product differentiation. Companies try to provide this through the different features offered in the appliances. For example, a 1-door refrigerator is more affordable for consumers belonging to the lower end of the economic strata whereas the high-cost side-by-side refrigerators are offered to consumers from the higher end of the economic strata.

In terms of new product development, the forecast period is expected to witness the rise of smart and connected electrical appliances. These appliances go a long way in easing the work of households by giving them the ability to remotely control and operate the products through mobile phone applications. In terms of different supply chain segments, retail chains have an opportunity to expand and sell higher number of electrical appliances. Similarly, an opportunity is emerging for new raw material providers.

Traditional manufacturing companies are striving to gain a technological edge in products, either through acquisitions or by developing in-house capabilities

The global electrical appliances market is defined by continuous improvement to products undertaken by companies. This generally means the introduction of new technology in products on a regular basis. For example, Whirlpool Corporation has announced that in 2018, it will become the first appliance maker to incorporate Apple Watch functionality in the company’s products. On the other hand, Philips Electronics N.V. has focused on adapting its appliances to the needs of the African population, a majority of which lives off-grid. In the meantime, Gree Electric Appliances Inc. is focused on automating its production processes. Separately, Samsung has focused on differentiating its designs from those of its competitors. To a lesser extent but an equally important strategy of companies is to acquire rivals or newly-started competitors, either to gain new technology or to expand geographically. For example, Midea Group recently acquired KUKA AG, a leading global supplier of intelligent automation solutions, for its technology. It also acquired the Home Appliances business of Toshiba for geographic expansion. Similarly, in late 2016, AB Electrolux acquired Kwikot, a leading water heater company in South Africa. The acquisition not only strengthened its expertise in the home comfort area, but also contributed to improving its overall market reach in Southern Africa. On a similar note, Panasonic Corporation acquired Hussman, the U.S.-based industrial refrigerator and freezer display case manufacturer.

The global electrical appliance market is expected to witness medium growth rate during the forecast period, driven by replacement demand in developed economies and new product purchases in developing economies

The global electrical appliances market has existed for a long time and during this time, has been dominated largely by manually operated products. However, the last few years have seen the rise of autonomous products where functions are carried out at the touch of a button. This has been matched by additional functionalities added to the products over a period of time. However, the outlook in terms of the products sold, is expected to be different during the forecast period.

The development of smart and connected appliances is expected to provide an impetus to the market. The market is expected to witness higher growth rate in developing countries, especially those in the Asia Pacific region. This is expected to be driven by the first-time purchase of electrical appliances by majority of the households in the region. Meanwhile, replacement demand is expected to be the major driver of demand in the developed regions of North America and Europe. The average lifespan of an electrical appliance is around 10 years, after which it needs to be replaced. In 2016, Asia Pacific generated the largest demand for electrical appliances and this trend is expected to continue during the forecast period.

A large number of local and regional players have a presence in different countries of the world

The global electrical appliance market is a relatively unorganized market with the top players accounting-for ~30% of the total market. Such companies include Haier Group, BSH Bosch & Siemens, Midea Group, Whirlpool Corporation, AB Electrolux, Gree Electric Appliances Inc., LG Electronics, Samsung Electronics, Panasonic Corporation, Koninklijke Philips N.V., Godrej Group, IFB Industries Limited, Midea Group, Hitachi Limited, and Glen Dimplex Group. The rest of the market is captured by local and regional players. These companies may not have the strength to expand into different regions and countries; however, it is difficult for multinational companies (MNCs) to grab share of national markets from such players.

Electrical Appliances Market – Overview

Electrical appliances are defined as devices which use electricity to perform specific functions. A wide range of such appliances is available from refrigerators, wine-coolers, washing machines, tumble dryers, vacuum cleaners, steam mops, shavers, trimmers, and water heaters to air conditioners, air coolers, heaters, fans, rice cookers, bread makers, toasters, irons, and juicers. Also, many companies across the world manufacture and sell such appliances, providing customers with a large range of options. The global electrical appliances market is expected to register a medium rate of growth during the forecast period. However, this growth rate will be spread unevenly across the different regions of the world. The developing region of Asia Pacific is expected to witness a higher growth rate, followed by North America, whereas Europe is expected to witness slower growth rate during the same period.

This report analyzes and forecasts the market for electrical appliances at the global and regional level. The market has been forecast based on units (Mn) and revenue (US$ Mn) from 2017 to 2025. The study includes drivers and restraints of the global electrical appliances market. It also covers the impact of these drivers and restraints on demand for electrical appliances during the forecast period. The report also highlights the opportunities in the electrical appliances market at the global and regional level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global electrical appliances market. Porter’s Five Forces model for the electrical appliances market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.

Electrical Appliances Market – Scope of Study

The study provides a decisive view of the global electrical appliances market by segmenting it in terms of product and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for electrical appliances in North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The report also covers demand for individual product segments in all the regions.

The study includes profiles of major companies operating in the global electrical appliances market. Key players in the electrical appliances market include Haier Group, BSH Bosh & Siemens, Midea Group, Whirlpool Corporation, AB Electrolux, Gree Electric Appliances Inc., Koninklijke Philips N.V., LG Electronics, Panasonic Corporation, Hitachi Ltd., Glen Dimplex Group and others. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The report provides the estimated market size of electrical appliances for 2016 and forecast for the next nine years. The global market size of electrical appliances has been provided in terms of revenue and volume. Market numbers have been estimated based on key product types and regions of the electrical appliances market. Market size and forecast for each major product type has been provided in terms of global and regional/country markets.

Key Takeaways of the Study

  • The report provides an extensive analysis of electrical appliances market trends and shares from 2016 to 2025 to identify the market opportunities and industry development
  • The report provides consumption and production patterns of electrical appliances by type, region, and country to help understand the manufacturing opportunities and developments
  • Import and export data as well as forecast for the same are provided for a better understanding of the various business opportunities
  • The report also provides the key industry developments of various manufacturing companies of the electrical appliances market
  • The report identifies the key factors responsible to build the upcoming opportunistic roadmap for the electrical appliances market at a global, regional, and country level
  • Comprehensive analysis with respect to investments, regulatory scenario, and price trend that will subsequently impact the market outlook and forecast of the global electrical appliances market between 2016 and 2025
  • The report provides details of various stakeholders in the value chain to understand the opportunities for them as well as their role in the market
  • A detailed competition landscape of key players dominating the industry to understand the competition level and the leading players in the world
  • Porters’ Five Forces and SWOT analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit oriented business decisions and analyze the strength and weakness to gain strategic position in the market. PEST Analysis is provided to understand the micro-economic and macro-economic factors affecting the global electrical appliance industry.

The global electrical appliances market has been segmented as follows:

Electrical Appliance Market: By Product

  • Refrigeration Appliances (Fridge, Freezer, Fridge-Freezer, Wine-cooler)
  • Home Laundry Appliances (Washing Machine, Tumble Dryer, Washer Dryer, Garment Care)
  • Dishwashers(Free-standing, Built-in)
  • Air Treatment Products (Air Purifier, Air Conditioner, Air Cooler, Humidifier/Dehumidifier, Heater, Fan)
  • Microwaves (Oven, Microwave)
  • Small Cooking Appliances (Air Fryer, Rice Cooker, Multi Cooker, Deep Fryer, Bread Maker, Toaster, Coffee Machine, Food Steamer)
  • Vacuum Cleaners (Vacuum Cleaners, Steam Mops)
  • Food Preparation Appliances (Blender, Food Processor, Mixer, Hand Mixer/Blender, Ice-cream Maker, Juicer)
  • Personal Care Appliances (Shaver, Trimmer, Hair Dryer, Hair Straightener, Steamer)
  • Irons (Steam Iron, Iron)
  • Others (Water Heater, Water Treatment Appliance, Electric Hand Dryer)

Electrical Appliance Market: Regional Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Thailand
    • Indonesia
    • Vietnam
    • Malaysia
    • The Philippines
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa