The World Market for Major Appliances

Delivery

This report comes in PPT.

Key Findings

Market growth returns after two years of decline

Volume growth is back in the major appliances space, albeit modest at 0.5% in 2024. We expect this trajectory to continue, with a 1.8% CAGR over 2024-2029, as inflation tapers. However, the unpredictability of Trump tariffs and their impact on interest rates, make forecasting growth in the market difficult.

Global South driving growth in major appliances

Nine out of the top 10 markets driving growth are from the Global South, with Russia an exception. These markets are growing at a range of 2.9-15.6%, significantly above the global average of 0.5%. Growth regions include Eastern Europe, South Asia, and Latin America.

Smart appliances is now AI appliances

Companies are jumping on the AI bandwagon. The industry has fully embraced AI and smart appliances are now AI appliances. Smart technologies are now being relabelled as AI focusing on climate control, cooking, health, energy management and connectivity. We expect AI to drive growth in the premium segment.

Beko Corp emerges as the number two company in the world

Arçelik, now Beko Corp, has become the world’s number two home appliance company after integrating Whirlpool’s EMEA markets. However, it still trails Haier, which holds a dominant 17.4% market share. This positions Beko to challenge Chinese companies in the medium to high-end segment of the market they have long dominated.

Shifting focus towards direct sales and a subscription model

Appliance companies want to own their customer relationships. Many are now focusing on selling directly to customers, through own retail stores and brand.com sites. This transition will also facilitate the move to servitisation. Subscription appliances have been very successful for LG, with growth rates over 20% for LG in South Korea and plans to expand to SEA.