According to the research “World Major Household Appliances” by Freedonia, global demand for major household appliances is projected to grow 3.8 percent annually through 2017 to 430 million units. Growth will be based in large part on increasing standards of living in China, India and other developing countries, making white goods affordable to consumers. A recovery in the housing markets in the US and Western Europe, along with rebounding consumer confidence levels, will also bolster sales gains. Developing countries generally have lower ownership levels of major appliances than do more advanced markets, which provides ample opportunities for first time purchases. Among the world’s developing countries, India will record the fastest growth through 2017. India’s rapid economic growth has vastly improved the standard of living in the country, spurring demand for capital goods such as major household appliances. China will continue to experience growth in major household appliance demand at rates above the global average, although advances will not be as robust as those during the past decade due to the recent expiration of government stimulus incentives. Still, China will account for over 30 percent of all additional global product demand through 2017. Sustained expansion in the country’s housing industry and strong gains in personal income levels will boost demand, particularly for first time purchases. In addition, as China’s installed base for white goods increases, opportunities for replacement sales will grow. Developed markets have been adversely affected in recent years by economic downturns. This caused many consumers to postpone appliance purchases – either to replace an existing version or to add new equipment – choosing to repair used equipment when possible. Because of this, sales growth will stem primarily from a release of this pent up demand through the forecast period. Rebounding housing activity in most advanced nations, particularly the US, will also contribute to gains, as many major appliances are installed when a new house is built or an existing house is sold.
Cooking appliances to record fastest advances
Of all major household appliance segments, cooking appliances will record the fastest growth through the forecast period. Along with refrigerators, cooking appliances are among the first white goods purchased in developing countries and will benefit from improved standards of living in such countries. In addition, pent up demand in developed nations will contribute to growth.