World demand for major household appliances (white goods) is forecast to rise 2.8 percent annually through 2013, approaching 500 million units. Demand will be driven primarily by market penetration in developing countries. In developed regions, sales will depend primarily on steady replacement demand, new home building and the development of new features that prompt upgrading. These and other trends, including market share and product segmentation, are presented in World Major Household Appliances, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Growth in China, the world’s largest market, will slow significantly due to rising rates of ownership. However, the country will still provide 30 percent of new appliance demand through 2013 due to continued growth in residential construction. China is also the world’s largest supplier of white goods, nearly tripling production from 1998 to 2008. China is a leading producer in the refrigerator, washing machine and microwave oven segments, exporting such products to the US, Western Europe and throughout Asia.
The bedrock US market is expected to show recovery from recent declines, benefitting from improved macroeconomic factors. Gains are expected to be more modest in other developed nations. Aside from a high degree of market maturity, replacement demand in most industrialized countries has been respectable in recent years. As a result, there is relatively less potential for incremental gains from this source going forward.
Among product groups, microwave ovens are expected to exhibit the best gains due to their short replacement cycle and their significant untapped market potential in numerous countries, especially in developing regions. Refrigerators and freezers will experience solid increases, benefitting from rising industrialization and personal income levels in developing nations. Dishwashers and clothes washers will exhibit respectable growth as well, although price, size and cultural considerations will prevent these items from becoming commonplace in most areas where they are not already established.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
