Top Five Trends in Major Appliances

February 2025

The major appliances market is rebounding, driven by AI, sustainability and servitisation. AI is transforming smart appliances, while circular economy practices enhance sustainability. Beko Corp rises to number two globally, challenging market leaders. Subscription models and direct sales are reshaping customer relationships, offering recurring revenue and loyalty opportunities.

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Key Findings

AI will take smart homes to the next level

The smart home market is expected to reach USD600 billion by 2030, driven by demand for connected, convenient and energy-efficient home solutions.

AI will enable personalised services such as energy management and health monitoring, central to the servitisation model. This is a critical shift from one-off sales to a recurring model.

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.

This positions Beko to challenge Chinese companies in the medium to high-end segment of the market they have long dominated.

Circularity and AI will elevate home sustainability

Sustainable appliances are approaching the limits of physics. The next level of efficiency will only be achieved through home automation using AI.

Extended Producer Responsibility (EPR) regulations, and resultant circularity initiatives will be key to a company’s sustainability push.

The USD50 billion servitisation opportunity

Servitisation shifts companies from one-time sales to recurring revenue through integrated product-service solutions, boosting customer loyalty.

It enhances margins, increases touchpoints and leads to higher market valuations through stable recurring revenue streams.

Owning the customer relationship

Appliance subscription models shift companies from one-time sales to ongoing, service-based customer relationships. This approach enhances customer loyalty and recurring revenue.

LG has been a pioneer and has seen tremendous success with subscription revenue growing 200% between 2022 and 2024.

Our expert’s view of Major Appliances in 2024
Key findings
AI homes and servitisation are potential market changers
Top five trends in Major Appliances
Top five trends uncovered
Smart appliances are now being rebranded as AI appliances
Even smaller brands such as Liebherr and Asko were showcasing AI at IFA 2024
AI adoption will be essential for value-driven innovation
Arçelik’s strategic leap: Acquiring Whirlpool’s operations to boost global presence
Beko Corp’s rise: Regional brands to global power
AI and circularity will bring appliance sustainability to the next level
Haier recycling plant
Miele circularity
AI and circularity: Future of sustainable appliances
Servitisation will increase consumer brand loyalty and switching costs
LG’s O2O services is part of its Home as a Service ( HaaS ) focus
Driving loyalty, profits and brand value through recurring revenue models
Revolutionising appliance sales: The rise of subscription models
LG’s subscription success: Convenience, growth and loyalty redefined
Transforming customer relationships: Growth of appliance subscription models
Future implications
Opportunities for growth

Consumer Appliances

Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.

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