World Major Household Appliances Demand to Reach 395 Million Units in 2015

World demand for major household appliances (white goods) is forecast to rise 3.4 percent annually through 2015 to 395 million units.  The bedrock US market will show strong recovery from recent declines, benefiting from improved macroeconomic factors.  Housing starts are expected to recover in developed areas such as the US and Western Europe by 2015, boosting demand as a matter of course.  Consumer confidence is expected to rebound, encouraging consumers to trade up to newer and improved equipment.  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.  

India will be the world’s fastest growing market, fueled by rising standards of living, which will spur first-time appliance ownership.  Gains in developing areas such as the Africa/Mideast region will also be stimulated by rising standards of living.  Advances in Western Europe will benefit from strong increases in the number of new housing units, but will lag the overall global average due to the relative maturity of most appliance types.  

Although growth in China will be strong in the immediate future, advances through 2015 will lag the global average, reflecting a cool down from the torrid pace of increase from 2005 to 2010.  Gains will be constrained by the large stock of white goods that has been sold in recent years.  Ownership rates in some categories have grown tremendously, limiting the potential for new ownership.  In addition, the Chinese government’s stimulus incentives for the purchase of white goods will expire in 2012. 

Technology will continue to be a key factor in the industry.  For example, “smart” appliances are expected to become a significant factor in developed world markets.  These appliances offer advanced features and will enable firms to sell at higher price points.  At the other end of the spectrum, manufacturers will produce low cost no-frill appliance designs in order to attract first-time buyers 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.