Home Appliances and Electronics (Global Market)

2023: Sales of smart home appliances for the year increased by 17%, to $37.2 billion

In 2023, the global market for smart home appliances amounted to $37.2 billion. For comparison, a year earlier, sales were estimated at $31.8 billion. Thus, growth was recorded at 17%. The industry analysis is provided in the Market Research Future review, which TAdviser reviewed in early December 2024.

Such equipment as smart washing and drying machines, air conditioners, refrigerators, microwave ovens, dishwashers, etc. are taken into account. One of the key drivers of the industry is the rapid development of the concept of the smart home as a whole. Smart appliances offer numerous advantages over conventional appliances, including improved convenience, efficiency and safety. You can interact with smart equipment from anywhere in the world via the Internet, automating task execution. In addition, such a technique helps to reduce power consumption.

Another driver of the industry is named technological advances, including artificial intelligence and machine learning. These algorithms allow you to optimize the operation of the technique and expand its functionality. For example, fridges equipped with AI track patterns of food consumption, offer recipes based on available ingredients, and even order items on their own when stocks run out. Climate systems with AI regulate temperature settings based on historical data and current environmental conditions, optimizing energy consumption and reducing utility bills. Intelligent devices with their ability to automate tasks and adapt to user preferences significantly increase comfort.

At the same time, analysts highlight a number of restraining factors. One of them is high upfront costs: smart appliances are significantly more expensive than traditional models, which deters buyers on a budget. In addition, there are risks associated with data breaches and privacy. Smart devices collect and transmit personal information, such as usage patterns and preferences: this information may end up in the hands of attackers. The functionality of smart devices largely depends on a stable Internet connection: in areas with poor or inconsistent communication quality, the possibilities of such equipment are significantly limited. Plus, there is a need to regularly update the embedded software, which can create certain difficulties for certain categories of citizens.

Geographically, the Asia-Pacific region is the leader in the smart home appliances market. At the same time, Europe is showing the most significant growth rates. Among the key players in the industry are:

• Whirlpool;
• Haier;
• LG;
• General Electric;
• Miele & Cie. KG;
• Electrolux AB;
• BSH Hausgerate GmbH;
• Philips;
• Groupe SEB;
• Samsung;
• Panasonic.

As lifestyles become faster, consumers are looking for solutions that simplify their daily tasks and increase comfort. Smart devices that offer features such as remote control, automation and integration with other equipment meet this demand, providing users with an unprecedented level of convenience, analysts say.

Market Research Future experts believe that in the future, the CAGR in the market under consideration will be 17.2%. As a result, by 2032, costs on a global scale could increase to $96.5 billion.^[1]

2019

2018: Global market size tops 1.1 trillion euros for the first time

Sales in the global home appliances and electronics (BTiE) market surpassed 1.1 trillion euros for the first time in 2018, up four percent from a year earlier, according to research firm GfK. Sales increased in the telecommunications segments (+ 7%), small household appliances (+ 7%), consumer electronics/photos (+ 6%) and IT/office equipment (+ 1%). In the segment of large household appliances, sales, on the contrary, decreased by 1%, GfK reported on January 10, 2019.

In 2019, the company's analysts predict a 2 percent increase in sales in the global market for household appliances and electronics, to the level of 1.03 trillion euros.

With a sales share of 42%, Asia the Pacific region continues to hold the position of the largest market for household appliances and electronics in 2018, followed by Europe (25%), (North America 20%), Latin America (7%) and the region//(Middle EastTurkey 6 Africa %).

With a sales share of 44% and a volume of about 440 billion euros, telecommunications became the largest segment of the household appliances and electronics market in 2018. Consumers are increasingly opting for premium devices, especially in this smartphones case - in this segment, global sales grew by seven percent. At the same time, in terms of sales volumes, the market remains rather stable.

Excluding Latin America (-5%), sales in the telecom sector in 2018 grew worldwide, and especially in Europe (+ 14%) and North America (+ 12%). However, GfK does not expect further sales growth in 2019. The company's analysts expect stable market development at the same levels as in 2018.

Large household appliances (CBT) are still the second largest segment of the BTiE market in 2018, sales here amounted to about 177 billion euros, although there was a slight one-percent decline. In general, large household appliances such as refrigerators, microwaves, washers or dishwashers accounted for about 17% of BTiE market sales in 2018, GfK said.

Among the main consumer requests, the company noted multifunctional devices and their connectivity, that is, the ability to connect various devices to the network and manage them using, for example, a smartphone.

Growth in 2018 was demonstrated by the markets of Latin America (+ 6%), Europe (+ 3%) and Asia-Pacific (+ 2%). According to GfK forecasts, global growth of KBT will continue in 2019, sales will increase by 6%.

In 2018, consumers around the world spent about 157 billion euros on computer goods and office devices, including consumables - almost the same as a year earlier. In the segment of computer technology and peripherals, there is an increase in demand for high-performance devices, especially for gaming PCs and laptops. Demand in Latin America and the Asia-Pacific region increased slightly in 2018, but in Europe sales stagnated, and in the United States, the Middle East/Turkey and Africa they showed negative dynamics, which practically offset the positive effect of the growth in demand for computer products in Asia, noted in GfK.

Meanwhile, there was a positive trend in the office equipment and consumables sector. Global sales grew by 3% to about 16 billion euros. The Asian region and, in particular, China also became a source of growth. However, in 2019, according to GfK estimates, the turnover of the IT/office segment may decrease by about 3%.

Global sales in the consumer electronics and photo segment grew by about 6% in 2018 to 153 billion euros. The share of the segment amounted to about 15% of sales in the BTiE market.

Like other segments, consumer electronics have also seen an increase in demand for more premium goods. Sales of high-end TVs with screens of 50 inches or more have grown significantly. In the premium segment, the popularity of OLED TV continues to grow. Headphones and portable Bluetooth speakers made a significant contribution to the growth of the audio market. According to GfK, sales of entertainment devices in Latin America look especially positive (+ 24%). Sales in the Asia-Pacific region, Europe, the Middle East, Turkey and Africa grew by an average of 4-5%.

In the photo segment, a negative trend continues - sales in 2018 are 5% lower than last year. The turnover of the global market for cameras and accessories last year amounted to 15 billion euros. At the same time, analysts note positive sales trends for advanced cameras. In 2019, GfK expects a decrease in growth in the consumer electronics and photo segment, however, growth, according to the company's forecasts, will still be about 4%.

In turn, sales of small household appliances (MBT) reached 86 billion euros in 2018, which was the result of an increase of 7%. The main contribution to market growth was made by China, thanks to which the Asia-Pacific region took the lead with a dynamics of 13%. In Latin America, the Middle East/Turkey/Africa region, sales increased by 10%, slightly less than the segment dynamics in Europe - 7%. The decrease in turnover occurred only in North America - by 2%.

In 2018, such devices as battery-powered handheld vacuum cleaners were of great interest to buyers. GfK experts also note that in 2019, such a trend as "uptrading" will intensify in the small household appliances market, which could lead to an acceleration in sales growth next year to 8%.^[2]

Home appliances market in Russia

Main article: Household appliances and electronics (Russian market)

Home Appliances and Electronics Market in Europe

Main Article: Home Appliances and Electronics (European Market)

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