Electrical Appliances Market Size, Share and Trends 2024 to 2034

Electrical Appliances Market Size and Forecast 2024 to 2034

The global electrical appliances market size is worth around USD 611.49 billion in 2024 and is anticipated to reach around USD 1,346.07 billion by 2034, growing at a CAGR of 8.21% over the forecast period 2024 to 2034. The rising investment in research and development by key prominent players to manufacture environment-friendly and reliable appliances is anticipated to boost the electrical appliances market during the forecast period.

Electrical Appliances Market Key Takeaways

• Asia Pacific dominated the electrical appliances market with the largest market share of 35% in 2023.
• North America is observed to expand at a rapid pace in the market during the forecast period.
• By operation, the automatic segment accounted for the highest market share of the 53% in 2023.
• By operation, the semi-automatic segment is expected to witness significant growth in the market during the forecast period.
• By product, the refrigerator segment held a dominant presence in the market in 2023.
• By product, the cooking appliances segment will witness considerable growth in the global market over the forecast period.
• By distribution channel, the online segment registered its dominance over the global market in 2023.
• By distribution channel, the multi-branded stores segment is projected to expand rapidly in the market in the coming years.

Asia Pacific Electrical Appliances Market Size and Growth 2024 to 2034

The Asia Paific electrical appliances market size was exhibited at USD 197.79 billion in 2023 and is projected to be worth around USD 477.85 billion by 2034, poised to grow at a CAGR of 8.34% from 2024 to 2034.

Asia Pacific held the dominant share of the electrical appliances market in 2023 and will witness prolific growth during the forecast period. The region’s growth is attributed to the presence of key market players, rise in disposable income, rapid urbanization, change in lifestyle, rising population, rising demand for smart energy-efficient appliances, rising expansion of the e-commerce sector and retail industry, and increasing production of innovative and technologically advanced electrical appliances.

Countries such as China, India, South Korea, and Japan are significant revenue contributors to the market owing to the presence of manufacturing hubs and a large consumer base. Asia Pacific is highly benefitted by efficient production capabilities, along with the rising middle-class population, which spurs the demand for electrical appliances. In addition, several smaller to medium-sized enterprises are increasing their market presence through entering new markets as a result of technological progress and product innovation.

• According to the Ministry of Electronics & IT Government of India (Annual Report 2022-2023), the electronics hardware industry is the world’s largest and fastest growing industry and is increasingly applications in all sectors of the economy. The domestic production of electronic items has increased from USD 49 billion in 2016-17 to USD 87.1 billion in 2021-22, growing at a CAGR of 15%. India’s electronics production is expected to reach USD 300 billion by 2026.
• In April 2024, Orient Electric expanded its product lineup with the launch of a new range of air coolers in India. The company claims that the new range of air coolers comes with large tank capacities and advanced features. Some of the new models launched include Smartchill 125L, Avante 105L, and Titan 100L in the desert cooler category and Maxochill 100L in the commercial cooler category.
• In April 2024, JD.com recently announced the ‘Trade-in Alliance for Household Appliances and Home Goods’ in collaboration with over 100 renowned brands. This initiative aims to expand and enhance trade-in services across China and has already been successfully implemented in 20 provinces and cities.

North America is observed to expand at a rapid pace in the electrical appliances market during the forecast period. The region is observed to witness prolific growth during the forecast period. The growth of the region is majorly driven by the rise in per capita disposable income, the rising implementation of smart home technology, the increasing popularity of smart energy-efficient appliances, the robust growth of the e-commerce sector, and the presence of a large customer base of electrical appliance products ranging such as refrigerators, heater, rice cooker, televisions, gaming consoles, audio systems, washing machines, fans, bread makers, toasters, irons, and other most popular electrical appliances.

North America’s electrical appliances market steady growth is driven by the increasing demand for home automation solutions and energy efficiency. The region has a robust economy and a strong emphasis on technological innovation. Furthermore, rapid modernization and demand for comfort have significantly increased with the use of advanced kitchens, including cordless induction, wireless electric kettles, dishwashers, smart blenders, and precision cookers.

• According to a survey, smart home statistics has shown that 69.91 million households in the United States are actively using smart home devices in 2024. This is 10.2% more than in the 63.43 million homes recorded in 2023.
• In September 2022, iRobot Corp., a leader in consumer robots, introduced the Roomba Combo j7+, the world's most advanced robot vacuum and mop, along with thoughtful iRobot OS 5.0 updates. iRobot OS 5.0 introduces new features and digital experiences that improve intelligence and personalization across the company's portfolio of connected robots – offering even more thoughtful updates for pet owners, busy families, and those looking for more control over how they clean.
• In December 2023, Biden admin launched an aggressive campaign targeting home appliances with eco regulations in 2023. Appliance regulations are being done as part of the climate agenda.

Market Overview

In modern days, electricity has become the heart of mankind's survival. Electrical appliances are devices that are powered by electricity and built to perform particular tasks for commercial, domestic, and industrial uses. Electrical appliances are used in our day-to-day lives with the assistance of electricity. Electrical appliances have a large consumer population base around the world. They include a wide range of electrical appliances such as refrigerators, washing machines, coolers, hair dryers, steam mops, shavers, vacuum cleaners, trimmers, water heaters, fans, air conditioners, air coolers, juicers & mixers, rice cookers, bread makers, toasters, and many more electrical appliances. Electrical appliances placed within buildings may range from portable or handheld items to items that are designed for use in a fixed position.

 Technological Innovation Continues to Drive the Evolution of the Electrical Appliances Market

As technological advancements evolve globally, the integration of smart technology and IoT connectivity stimulates the growth of the electrical appliances market. Artificial intelligence (AI) is assisting the market to shift toward a more sustainable and intuitive technological future. Artificial intelligence is revolutionizing the industry by creating more personalized experiences, automating processes, and enhancing efficiency. AI integration into IOT devices offers homeowners more security, convenience, and efficiency with electrical appliances.

The electrical appliances market, with robust automation and connectivity features, is among the new attractive devices that are in high demand. Features such as predictive maintenance, personalized user experiences, voice and gesture control, and enhanced safety features, such as artificial intelligence, enable appliances to operate more safely, smartly, and intuitively. The increasing integration of AI in electrical appliances boosts innovation and improves the quality of life, making this attractive to consumers.

Electrical Appliances Market Growth Factors

• The increasing population is likely to promote the market’s growth in the upcoming years.
• The rising trends related to sustainability and energy efficiency is expected to drive the growth of the electrical appliances market during the forecast period.
• The robust expansion of the e-commerce and retail industry is expected to foster the demand for electric appliances during the forecast period.
• The rising modernization and changing lifestyles have greatly increased the use of smart electrical appliances, accelerating the market’s expansion.
• Several governments around the world are promoting energy efficiency and green technologies as well as incentivizing manufacturers to produce eco-friendly electrical appliances, fueling the growth of the electrical appliances market.

Market Scope

Market Dynamics

Driver

Rapid urbanization

The rapid urbanization is anticipated to drive the growth of the electrical appliances market during the forecast period. Electrical appliances are designed to perform various tasks using electricity and make daily life more convenient. Urbanization has brought about significant changes in living practices. As consumer lifestyles evolve, urbanization is expected to rise. Urban populations adopt these electrical appliances at higher rates to enhance comfort levels, save time, and streamline tasks. The urban population highly preferred value-added products that offer both affordability and convenience.

In commercial and industrial settings, electrical appliances comprise several devices such as power tools, printers, computers, and manufacturing machinery. The use of electrical appliances market services improves convenience, enhances productivity, and streamlines tasks. Therefore, the rising urbanization has resulted in increasing demand for electrical appliances, majorly driven by the rising standards of living, the rising need for convenience, and increasing disposable incomes.

• In April 2023, Candy, a leading Italian household appliance brand, announced its entry into the Indian consumer durables market with the launch of a range of appliances. The company introduced its product portfolio, which includes air conditioners, refrigerators, washing machines, and smart TV categories.

Restraint

Price competition

The rise in price competition is anticipated to hamper the growth of the electrical appliances market . The intense competition among prominent players has resulted in price wars and adversely impacting the profit margins. Additionally, the easy availability of electrical appliances at a lower cost hampers the profit margins of top manufacturers.

Opportunity

Rising consumer trends toward eco-friendly and energy-efficient appliances

The consumer trend toward eco-friendly and energy-efficient appliances around the world is projected to create a lucrative growth opportunity for the electrical appliances market during the forecast period. Energy-efficient appliances are gaining significant popularity in the market due to rising environmental concerns and rising energy costs. To reduce the impact of electric appliances on the environment, manufacturers are increasingly offering energy-efficient appliances equipped with more efficient technological solutions.

• In July 2024, Syensqo launched circular Omnix ECHO solutions for household and food appliances. The company launched five new high-performance ECHO grades as part of the company’s growing Omnix ECHO circular polymer portfolio.

Operation Insight

The automatic segment accounted for the dominating share of the electrical appliances market in 2023 owing to the rising modernization and hectic lifestyle routine. The increasing adoption of smart and IoT-based appliances has reshaped consumer preferences, which resulted in increasing demand for appliances that offer seamless operation with minimal manual intervention. Automatic appliances have become the preferred choice for consumers owing to their convenience, efficiency, and safety. Automatic appliances are equipped with advanced sensors and programmable settings, catering to the consumer demand for convenience, time-saving, and automated solutions.

The semi-automatic segment is expected to witness significant growth in the electrical appliances market during the forecast period. Semi-automatic electrical appliances use electric power to operate. Semi-automatic appliances require human intervention while performing their task.

Product Insight

The refrigerator segment held a dominant presence in the electrical appliances market in 2023. The segment’s growth is majorly driven by changing consumer lifestyles, rising disposable incomes, and rapid technological advancement. Consumers are increasingly seeking refrigerators with advanced features. Refrigerator manufacturers have addressed the evolving demand by innovating their product lines to meet the ongoing needs of consumers. Nowadays, refrigerators are equipped with the latest technologies to enhance food preservation, improve energy efficiency, and maximize storage space. From advanced cooling systems to smart connectivity features, refrigerators are gaining momentum in offering a standard of freshness in every aspect. Advanced air purification technologies in refrigerators actively eliminate odors and bacteria to maintain a hygienic environment for food storage. Moreover, technological innovations such as the integration of IoT capabilities and attractive designs are anticipated to fuel the growth of the refrigerator segment in the electrical appliances market.

• In January 2023, Samsung Electronics announced the global launch of the Bespoke Infinite Line Refrigerator in select markets around the world. Having originally launched in Europe, the Bespoke Infinite Line Refrigerator will expand to countries including Mexico, Thailand, and Australia by the end of the year.

The cooking appliances segment will witness considerable growth in the global electrical appliances market over the forecast period. The cooking appliances include products such as coffeemakers, food processors, microwaves, ovens, blenders, air fryers, and others. The growth of the segment is driven by the fast-paced and busy lifestyle, rising disposable income, and the increasing demand for high-quality cooking products. Cooking appliances save time and streamline complex cooking tasks. Such factors are expected to increase the adoption of advanced cooking appliances and propel the growth of the segment.

• In June 2024, Havells India partnered with Jumbo Group for kitchen appliances in UAE. Havells India said that this alliance is set to bolster the company’s product portfolio and market reach while enabling Jumbo Group to establish a significant presence in the Middle East. The partnership will see the launch of Havells India's premier kitchen appliances, including advanced mixer grinders, starting with online availability on Jumbos' e-commerce website and ending with retail store distribution.

Distribution Channel Insight

The online segment registered its dominance over the global electrical appliances market in 2023. The growth of the online segment is facilitated by the availability of a wide range of electrical appliances. E-commerce portals offer attractive discounts, particularly in festive seasons, which attracts a large base of consumers.  In addition, manufacturers are also partnering with several other potential companies to ensure timely delivery and installation after the product is sold on the online platform. E-commerce service providers such as Myntra, Walmart, Inc., JD.com., eBay.com, Flipkart, Alibaba, Amazon, and others offer various value-added services such as coupon benefits, COD, no-cost EMI, free home delivery, and others. Such factors contribute to the growth of the online segment as a significant distribution channel during the forecast period.

• In October 2023, to encourage the adoption of energy-efficient appliances, Energy Efficiency Services Limited (EESL), a joint venture of public sector undertakings (PSU) under the Ministry of Power, will set up an e-commerce portal that will exclusively feature electric appliances with the highest efficiency ratings.

The multi-branded stores segment is projected to expand rapidly in the electrical appliances market in the coming years owing to the accessibility of the wide range of good quality electrical appliances. Moreover, the presence of brand promoters in the stores helps to establish better interaction with the consumer as well as give better knowledge about the product.

Electrical Appliance Market Companies

• Samsung Electronics
• LG Electronics
• Midea Group
• Panasonic
• Haier Group
• iRobot Corporation
• GE Appliances
• Haier Group
• Panasonic Corporation
• Robert Bosch GmbH
• Gree Electric Appliances
• Koninklijke Philips 
• Whirlpool Corporation
• Electrolux AB

Recent Developments

• In February 2022, Gillette India Limited (GIL) commenced marketing and selling of Braun in India. Braun, a subsidiary of Procter & Gamble, was founded in Germany in 1921 and is a pioneer in the field of electric grooming appliances across the world. 
• In February 2024, Panasonic launched a new AC line-up, including Matter-enabled RACs powered by Mirage. In response to the sharp increase in demand for cooling appliances, Panasonic has introduced 60 new models across its entire range of ACs. 
• In August 2022, Thomson launched small home appliances such as Juicer, electric cookers, room heaters, and more. Thomson believes that the demand for small kitchen appliances is growing in India, on account of the rising base of the middle class and rich Indian consumers.

Segments Covered in the Report

By Product

• Refrigerator
• Entertainment Appliances
• Cooking Appliances
• Washing Appliances

By Operation

• Automatic
• Semi-automatic

By Distribution Channel

• Online
• Specialty Stores
• Multi-branded Stores

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa