The global household appliances market is estimated to reach USD 342.82 billion by 2022 at a CAGR of 6.06 percent. The global demand for appliances increased significantly. The home comfort segment depicted the highest growth rate among all five sectors in 2016. The market is expected to grow majorly in developing countries like China, India, and the Middle East.
The market can be categorized into two sectors: the mature market which mainly consist of Europe, America, and Australia where the growth is low and sales are dominant by replacement, and then there are the growth market which include India, China, and the Middle East; in 2016 the demand in this market accounted for 68 percent of appliances.
The Indian household appliances industry is expected to grow due to easy availability of finance drop prices due to increased rivalry. South Korea, India, China, and Hong Kong are expected to drive growth in Asia, according to Research and Markets. APAC is also expected to emerge as a good destination for companies to set up their factories due to low labor and manufacturing costs.
The major driver of this industry is the rise in per capita income in developing countries, which has led to consumer spending. Housing activities have always been there, and appliances like these are making life easier hence increasing the demand for these products. Increasing urbanization, rising working class population, and new product development are also one of the factors for the growth in this market.
However a major constraint is the cost of the appliances as making these products requires technological tools that come at a great cost. The competition is very high as the five largest manufacturers of appliances in the world account for almost half of the global sales.