Freedonia Research Report Analyzes Global Appliance Industry

World demand for major household appliances (white goods) is projected to increase 3.1 percent annually through 2011, exceeding 480 million units.  Demand in the Asia/Pacific region, in particular China, will continue to benefit from above-average urban population growth and healthy gains in the number of households.  India will have the fastest growth of any nation, benefiting from low penetration rates and rising standards of living.  Above-average growth will occur in the Africa/Mideast and Latin America regions due to strong gains in the number of households and rising per capita incomes. Eastern Europe will also present opportunities, as a growing middle class increases its usage of appliances such as microwave ovens and clothes dryers. These and other trends, including market share and company profiles, are presented in World Major Household Appliances, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Growth is also expected in the developed nations, despite the relatively high rates of market penetration.  Advances in these regions will primarily be supported by replacement demand, as users both replace broken equipment and trade up to newer models.  Manufacturers will continue to introduce new technological innovations as a way to encourage upgrades.  Among innovations that will boost demand are more efficient appliances designed to offer cost-reducing and “green” alternatives to older models.  

China is the world’s largest major household appliance market, and is also the world’s largest producer and exporter of these products.  However, growth in exports will slow from the torrid pace of the 1996-2006 period, in part due to increasing competition in offshore markets from other low-cost producing nations as well as to the establishment of offshore facilities by some Chinese manufacturers. 

Microwave ovens will post the fastest gains of any product group through 2011 due to their shorter lifespan compared to other white goods. In addition, significant untapped market potential exists in numerous countries, especially in the developing regions.  Dishwashers will match industry growth, although price, size and cultural considerations will prevent these items from becoming commonplace in most areas where they are not already established.  Refrigerators, freezers and conventional ranges will experience below-average gains, but will benefit from rising income levels in developing nations.

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.