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Smart Home Appliances Continue to Grow Market Share
Home Appliances Market Analysis and Commentary
21 Oct 2019 - Household refrigeration and laundry appliances are on track to ship 326 million units worldwide in 2019, with smart appliances accounting for a growing share of the market, according to a new summary report from Futuresource Consulting.
“Smart tech is making a noise in white goods. It’s one of the key trends to watch,” says Morris Garrard, Research Analyst at Futuresource Consulting. “Our research shows that annual shipments of connected appliances will double between 2018 to 2020, achieving 33 million units in 2020 and 10% shipment penetration.
Smart Appliances Driven by Competition
“The cost of smart appliances is falling, but this additional functionality is generally still restricted to higher end models. However, Chinese manufacturers are rolling out connected features into lower price brackets in their domestic market, where nearly one in five units that sell this year will have smart features. In turn, this is pressurising Western brands to implement smart technology beyond flagship models. At the same time, Western brands are waging a smart war in the mid-premium tier in order to gain ground and seize share in markets outside China.”
Conventional Appliances Thriving in Developing Markets
Beyond smart appliances, conventional white goods are experiencing strong growth in India, MEA and developing Asian markets. This is primarily due to the scale of the addressable market and the relatively low household penetration of appliances. Combine this with rapid urbanisation of developing regions and future demand is heading for a steep growth curve.
“China, North America and Western Europe will continue to retain the lion’s share of worldwide market demand, though it won’t be an easy ride,” says Garrard. “US tariffs will continue to shape markets in the Americas due to increases in import costs of raw materials and finished goods. Meanwhile, downward pressure on housing developments is expected to impact developed European and North American markets alike. In these mature markets, volume will be driven by replacement cycles and upgrades, which include space-saving combined appliances such as fridge freezers and washer dryers, despite the higher average selling prices.”
For further information on the home appliances refrigeration and laundry summary report from Futuresource Consulting, please contact firstname.lastname@example.org
Here at Futuresource Consulting we deliver specialist research and consulting services, providing market forecasts and intelligence reports. Since the 1980s we have supported a range of industry sectors, which has grown to include: CE, Broadcast, Entertainment Content, EdTech and many more.