Worldwide Household Appliance market demand to increase 2.8% per year through 2013 Posted: Jan 20, 2010
Growth is also expected in the developed nations, despite the relatively high rates of market penetration. Advances in these regions will be primarily supported by replacement demand, as users both replace broken equipment and trade up to newer models. Since the life cycle of most white goods is more than ten years, manufacturers will continue to introduce technological advances as a way to encourage upgrades. Among innovations that will boost demand are more efficient appliances designed to offer costreducing and “green” alternatives to older models.
Torrid growth of Chinese exports to slow 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 1998-2008 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 such as Haier. Nevertheless, shipments of appliances from Chinese manufacturers will exceed 250 million units in 2013, with the majority being exported.
Microwave ovens to post the most rapid gains Microwave ovens will post the fastest gains of any product group through 2013 due to their shorter lifespan compared to other major household appliances. In addition, significant untapped
World demand for major household appliances (white goods) is expected to rise 2.8 percent annually through 2013, exceeding 490 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
With more than 180 million families, China's countryside has lagged far behind urban areas in sales of home appliances. And analysts said one percentage point of increase in appliance ownership there could mean at least 1.8 million items of home appliances in sales.