Product Development Fueling Replacement Sales Growth
Replacement purchases account for most household appliance sales globally and will be the largest source of gains through 2028. Replacement rates are expected to rise over time in most segments, reflecting the impact of product development trends:
-
As the complexity and level of computerization in household appliances continue to increase, the number of potential failure points will multiply, reducing average product lifespans.
-
The promise of ongoing efficiency improvements will provide a justification for more frequent appliance upgrades, and manufacturers are expected to de-emphasize lifespan in their product designs in favor of minimizing up-front costs.
With the energy- and water-efficiency of appliances continually improving, many countries are expected to adopt policies encouraging consumers to upgrade from older appliance models, further boosting replacement rates. For example, in 2024, China introduced an expanded consumer goods trade-in program that provides rebates for consumers upgrading to newer, more efficient appliances.
High-Income Markets Continuing to Correct Following Pandemic Shock
The COVID-19 pandemic dramatically impacted the global household appliance market, as high-income nations saw surging demand in 2020 and 2021 while manufacturers faced significant disruptions to their operations. Sales continued to correct through 2023, and demand in most high-income nations remained below pandemic-era peaks.
Going forward, manufacturers serving high-income nations must continue to adapt to post-pandemic market norms, with some countries expected to still see sales below 2021 peak levels through 2028. Production capacity established during this period will be increasingly redirected to serve fast-growing emerging markets, with exporters operating outside of high-income nations poised to achieve strong output gains.
Middle-Income Countries Hold Strong Growth Prospects
The list of fastest growing national markets for major household appliances through 2028 largely consists of middle-income countries, particularly those in the Asia/Pacific and Africa/Mideast regions. Such countries feature expanding middle-class populations that are driving increased appliance adoption and high rates of first-time sales, including for both relatively essential products like refrigerators and luxury products like dishwashers.
In contrast, high-income countries typically have little potential for first-time sales growth due to high penetration rates. Lower-income countries will remain far below their market potential in the near term, as major household appliances will continue to be outside of the financial means of most of the population.
Historical Market Trends
Global sales for major household appliances are impacted by a variety of economic indicators, including:
Replacement sales represent the bulk of household appliance demand globally and are the more stable segment, typically increasing at a 2-5% annual rate in the 21st century. Ongoing growth in the number of household appliances in use globally provides a continually expanding base for potential replacement sales.
Replacement purchases of major household appliances are impacted by economic fluctuations and reflect trends in consumer spending to a degree. However, most household appliances in use worldwide – particularly refrigerators and large cooking appliances – are considered essential products, and consumers will typically replace them as soon as possible when they break. This limits losses in unit sales during economic downturns, although consumers will shift to purchasing lower-end product offerings when facing financial constraints, negatively impacting the market value in dollar terms. Products like dishwashers and standalone freezers are also considered to be more inessential luxuries and have a greater chance of not being immediately replaced at the end of their lifespan.
New sales of household appliances include both first-time purchases and sales associated with new housing construction. Globally, first-time purchases tend to increase over time as rising income levels and population growth in lower- and middle-income countries allow for greater adoption of these products. In the long term, first-time purchases can decline once a product type reaches very high levels of market saturation, although this trend has thus far been limited to certain segments in high-income nations and is always inherently paired with a large stock of appliances driving high levels of replacement sales.
Sales of major household appliances associated with new housing construction can be volatile, reflecting the typical nature of residential building construction industries worldwide.
Appliances in Use Per Housing Unit
When evaluating the average number of major household appliances in use on a per household basis, economic prosperity and cultural preferences play a more significant role:
-
Western Europe had the greatest number of appliances in use per housing unit in 2023. This is driven by not only high income levels and high standards of living, but also by the fact the many households prefer to use separate cooking appliances (i.e., cooktops and ovens) instead of ranges. However, in comparison to North America, West European household are more likely to own a combination washer-dryer unit instead of separate appliances due to space constraints.
-
North America is the second most intensive regional user of major household appliances. Most US and Canadian households own a refrigerator, cooking appliance, washing machine, and dryer, while many also have a dishwasher, second refrigerator, or standalone freezer.
-
Central and South America and the Asia/Pacific region both averaged between 2.00 and 3.00 appliances per housing unit in 2023. Most households in both regions have a refrigerator and large cooking appliance, while washing machines are common but not ubiquitous.
-
The Africa/Mideast region had less than 1.00 appliances in use per housing unit. Many households in the region are impoverished and lack reliable access to electricity and running water, making ownership of these products infeasible.
Because at least basic versions of refrigerators and cooking appliances are seen as essential items in many areas of the world, they tend to be among the first appliances purchased as household incomes rise, leading to a broader degree of ownership for these products in most countries.
International Trade
International trade in major household appliances is substantial, with a significant portion of global supply entering the trade stream each year. In 2023, global appliance exports were equivalent to about 35% of production.
China was by far the largest net exporter of appliances in 2023 and is expected to retain this title in 2028. However, export growth in the country is expected to be slower than in the 2018-2023 period, reflecting:
-
rising wages, with the cost advantages of Chinese manufacturing eroding as it advances toward becoming a high-income country
-
efforts by high-income nations to strengthen local manufacturing following supply chain disruptions associated with the COVID-19 pandemic
-
ongoing trade conflicts with the US and the EU
After China, the world’s largest net exporters of major household appliances in 2023 were Turkey, Poland, Mexico, and Thailand.
The US is by far the world’s largest net importer of household appliances, reflecting the massive size of its domestic market. Through 2028, the country is expected to remain among the five largest manufacturers of these products globally, while import growth slows somewhat compared to the 2013-2023 period due to reshoring efforts. However, the US trade deficit is still expected to expand, and the country will remain a key foreign market for appliance exporters.
Housing Trends
Residential Construction Activity
Trends in residential building construction activity and home design are important to the major household appliance industry:
-
Construction of new housing units serves as a strong indicator for first-time appliance purchases, as new dwellings are commonly outfitted with at least some appliances, either by the construction company or by the new homeowner.
-
Home design trends indicate which types of major appliances are purchased – e.g., ranges or separate stovetops and ovens – as well as their quantity and quality. For example:
-
Larger homes are more likely to include more and larger appliances.
-
Consumers purchasing or renovating higher end homes are more likely to invest in technologically advanced products, including those with smart connectivity.
In high-income countries, the modernization or expansion of existing homes through remodeling creates the potential for appliance sales, as consumers are likely to want better performing appliances or appliances that fit with the new aesthetics of their home.
Through 2028, global residential construction expenditures are projected to increase 2.2% per year. The strongest growth is expected in the Africa/Mideast region, where high levels of population growth will be coupled with increasing urbanization. Strong advances are also expected in the Asia/Pacific region and Central and South America, with healthy gains expected in lower- and middle-income nations. Among higher-income regions, North America holds somewhat stronger growth prospects than Western Europe due to greater population growth.
Report Details
This study analyzes global supply and sales of major household appliances, also known as “white goods”.
Covered products include:
-
refrigerators:
-
standalone freezers (freezers included in a refrigerator are counted in refrigerator sales for the purpose of this study), regardless of size
-
washing machines, including combination washer-dryer units (both all-in-one units that have both washing and drying functions in one drum and single, stacked units – often called “laundry centers” – that contain separate washing and drying drums)
-
clothes dryers sold separately from washing machines, excluding combination washer-dryer units (which are counted as washing machines in this study)
-
large cooking appliances:
-
dishwashers, including portable, countertop, and built-in dishwasher units
Also included are:
-
commercial-grade units that are installed in residential homes, as well as major household appliances that are installed in outdoor residential spaces (e.g., garages, outdoor kitchens)
-
portable and countertop versions of the covered products
-
specialty appliances (e.g., kimchi and wine refrigerators)
-
combination units:
-
refrigerators with a freezer compartment
-
all-in-one kitchen units also known as combo-kitchens (For the purposes of this study, each major household appliance installed in one of these units counts as a separate unit for sales and appliances in use.)
-
combination washer-dryer units and laundry centers
Excluded from the scope of this study are:
-
small cooking appliances such as rice cookers, hot plates, and microwave ovens
-
miscellaneous household appliances such as air conditioners, vacuum cleaners, hair dryers, and water heaters
-
consumer electronics such as DVD players, televisions, and computers
-
cooking appliances used in outdoor settings, such as wood-burning ovens, grills, and fire pits
-
major household appliance accessories, such as range hoods
-
major household appliance parts, such as door assemblies, cooking chambers, and air compressors
Historical data for 2013, 2018, and 2023 and forecasts for 2028 and 2033 are presented in current dollars (which are not adjusted for inflation) and unit terms. Historical data from 2020 to 2027 are also presented.