Growing Consumer Affluence Drives the Global Electric Household Appliances Market
The global market for electric household appliances is projected to reach 1.5 billion units by 2020, driven by technology innovations and high replacement demand, as well as growing affluence of the middle-class population in emerging markets, according to a recent report from Global Industry Analysts Inc. Household appliances have become an essential part of modern life. Today, the market is replete with a range of household appliances designed to suit various requirements of consumers across the globe. Key factors driving market growth include the increase in the number of working women, the rise in dual income nuclear families, increasing disposable income, and higher per capita spends on lifestyle products. In addition, social and cultural factors also influence demand in the market. Technological improvements in product efficiency and performance are also expected to benefit market growth.
The market is reportedly witnessing a steady influx of high-priced appliances, with innovative features that reduce human labor and provide superior home care. Manufacturers are focusing on developing smart and autonomous devices by integrating sensors, and intelligent electronic control and machine programming concepts. Smart appliances are forecast to show strong potential for future growth, especially against a backdrop of escalating electricity costs worldwide and growing government emphasis on reducing energy consumption. Smart grid-connected dishwashers, refrigerators and water heaters, among others, are currently being developed to enable consumers to better manage their electricity consumption patterns. The growing trend of home automation is also expected to result in an increased number of electric household appliances connecting to home computer networks.
Demand for washing machines, electric ranges, microwave ovens, room air conditioners, and dishwashers in the developing nations of Asia-Pacific and Latin America is forecast to continue witnessing strong growth. Replacement of older and obsolete appliances with energy-efficient products is a key factor driving demand in developed markets such as North America, Japan, and Europe. Energy-efficient appliances with innovative compact designs are poised to score the highest gains in the coming years.
Asia-Pacific represents the largest market worldwide, according to the report. The region is also forecast to emerge as the fastest growing market with a compound annual growth rate (CAGR) of 6.3% over the analysis period. Growth in the region is reportedly driven by growing population, rising GDP rates, growing affluence of the middle-class population, Westernization of lifestyles, rise in disposable incomes, rapid urbanization, increasing number of households, and improving standards of living.
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