Household Appliances Market Trends

Growth Drivers

• Rising urbanization - With the lucrative global population along with the boosting economies, there is also a significant increase in urbanization, which boosts the demand for home appliances. According to a report by Our World Data in 2024, more than 4 billion people live in urban areas and the rates of urbanization have been increasing rapidly across all regions, as of 1800 less than 10% of people used to live in urban areas, impelled by which urbanization is expected to fuel incomes and is expected to shift away from the employment in agriculture.
• Growth in environmental awareness - As environmental concerns grow, so does the demand for sustainable practices, including the preference for appliances that are eco-friendly and energy-efficient. This is because appliance services reduce the use of resources and energy while providing access.
  
  In addition, the adoption of appliance rental services is being driven by the growing awareness and promotion of environmental sustainability. According to a report by UNICEF in 2022, it showed that more than 73% of citizens are concerned about climate change and its negative impact on children's lives.
• Increase in disposable income - The home appliances market grows as consumer buying power and disposable income rise. Consumers with higher income levels can now afford to buy bigger items that they may have put off because of budgetary concerns, like major equipment like refrigerators, washing machines, and dishwashers while having appliances rental option in their mind.
  
  Furthermore, when disposable income rises, people tend to enhance their lifestyles and purchase more sophisticated or feature-rich appliances that provide convenience, energy efficiency, or smart capabilities. According to OCED, the average net wealth is estimated at USD 323,960, of which USD 30,490 is the net adjusted disposable income of an average in a year.

Challenges

• Increasing number of accidents - Gas and electricity are frequently used to power home appliances. In low- and middle-income countries, many devices are useless when they are fueled and energy is scarce while infrastructure is insufficient. Moreover, this can also cause dangerous radiation from these appliances, and short circuits as such devices run on electricity and have come to light. Smart appliance technical issues also cause emotional issues for customers as well. These could have terrible effects, such as fire, property loss, and harm to people. Consequently, worries over home appliance safety will hinder the industry's expansion.
   
• Shortage of raw materials - Shortages of raw materials can seriously hurt the home appliance sector in several ways. First, shortages or interruptions in the flow of essential resources, such as metals, polymers, and electronic components, can cause production delays and raise manufacturing costs for companies that make appliances. This might lead to decreased affordability and higher prices for customers, stifling demand.