U.S. Household Appliances Market Size, Share & Trends Analysis Report, By Product Type, By Distribution Channel, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. household appliances market size was valued at USD 43.34 billion in 2016. The growing popularity of induction cooking technology in the wake of rising fuel prices and the changing lifestyle of consumers with increasing number of nuclear families has increased the dependence of users on the household devices and hence is expected to significantly drive the home appliances market.

The industry has been gaining prominence on account of devices enhanced with smart sensors and the Internet of things (IoT) enabled technology, meaning that the devices can be controlled and monitored remotely through mobile applications. For instance, the family hub fridge displayed by Samsung at the 2018 Consumer Electronics Show (CES) in Las Vegas takes a snapshot of the refrigerator from inside and enables analysis of the duration for which the food is stored.

While the major household device manufacturers are increasingly focusing on the technological advancement of their products, the growing government subsidiaries in the form of rebates and tax credits to the manufacturers producing energy efficient device is anticipated to drive the development of the energy efficient as well as smart household appliances. Along with easing the customer user interface by integrating the devices with the IoT platform, the manufacturers focus on developing energy efficient technologies, which comply with the ENERGY STAR specifications and efficiency levels.

The manufacturers are offering appliances with multiple features in a single product. For instance, a combination oven can operate with different features like heating by convection or microwave radiation or can even function like a griller with a change in settings. Similarly, SMEG has recently launched its new range of mixed cooktops, offering a combination of the traditional gas burner with an induction zone. The appliances such as toasters, grillers & griddles, tea & coffee makers, convection & steam ovens, and smart cooktops and cookware have made cooking less time consuming and convenient for the users.

Product Insights

The market by product type is segmented into water heater (boiler/geyser); dishwasher; refrigerator; cooktop, cooking range, microwave, and oven; vacuum cleaner; mixer, grinder, & food processor; washing machine; and air conditioner & heater. The cooktop, cooking range, microwave, and oven segment accounted for the largest revenue share of 27.8% in 2016 and is anticipated to grow at a modest CAGR of 3.3% over the forecast period. The mixer, grinder, & food processor segment is forecasted to grow at the highest CAGR of around 5% from 2017 to 2025.

The household appliances manufacturers are investing most in their Research & Development (R&D) business and focusing on efficient product development. For instance, Contemporary ovens and other cooking devices provide advanced touch-screen controls and LCDs with improved aesthetic values and control features. In addition, with increasing connectivity, the Internet of Things (IoT) makes it possible to access the appliances in real time even without the physical presence of the user. This has resulted in easy and efficient use of these products.

The washing machine manufacturers are shifting their focus toward the emerging revenue oriented and high-margin smart connected appliances. This development has given rise to an intense competition enabling manufacturers to develop innovative and convenience-oriented washing machines. For instance, in October 2016, Candy S.p.A announced the launch of the Candy Smart intelligent connected washing machine using the Near Field Communication (NFC) technology, which wirelessly connects a washing machine to the Candy simply-Fi application in the user’s smartphone.

Distribution Channel Insights

By distribution channel, the U.S. household appliances market is segmented into brick & mortar and e-commerce. The brick & mortar segment includes electrical & electronics retailers, hypermarket, supermarket, discount stores, variety stores, department stores, and general merchandisers. The segment accounted for a larger revenue share of the overall market in 2016 and is forecasted to reach to USD 51.47 billion by 2025. The e-commerce segment is expected to grow at a higher CAGR of around 9% over the forecast period.

The manufacturers have access to a wide spread distribution channel. They usually sell their products to the end-users through wholesalers who channel the products from re-sellers including electrical & electronics retailers, hypermarket, supermarket, variety stores, discount stores, departmental stores, and online stores such as Amazon.com, Inc., US Appliance, AJ Madison Inc., and BrandsMart USA.

The U.S. Gross Development Product (GDP) share of the e-commerce market was around 3.5% of the country’s total GDP in 2016. China accounts for the highest share of e-commerce in its GDP followed by the U.S. Some of the prominent online retailers in the U.S. including Wal-Mart Stores, Inc. and Target Brands, Inc. offer competitive prices as they enjoy economies of scale by purchasing the products directly from the manufacturers.

U.S. Household Appliances Market Share Insights

Key players in the U.S. household appliances market include Whirlpool Corporation, LG Electronics, Samsung, Haier Group Corporation, and Robert Bosch GmbH. Various players in the market have strategically partnered and entered into Merger & Acquisition (M&A) deals as a part of forward integration in the distribution channel and to confront the challenges of in-house investment on R&D and economies of scale on the production cost.

For instance, in September 2016, LG Electronics announced its collaboration with the e-commerce giant, Amazon.com, Inc. The company intends to integrate Amazon’s Alexa voice assistance into its SmartThinQ hub, which is a device for connecting LG home devices. LG Electronics further envisions to add Amazon’s dash feature in the SmartThinQ hub to enable the communication of devices on their own, allowing users to quickly order and replenish any household item through Amazon. The strategy is to provide differentiating IoT features to make LG smart home solutions more convenient for users.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. household appliances market report based on product type and distribution channel.

• Product Type Outlook (Revenue, USD Billion; 2014 - 2025)

  • Water heater (boiler/geyser)

  • Dishwasher

  • Refrigerator

  • Cooktop, cooking range, microwave, & oven

  • Vacuum cleaner

  • Mixer, grinder, & food processor

  • Washing machine

  • Air conditioner & heater

• Distribution Channel Outlook (Revenue, USD Billion; 2014 - 2025)

  • Brick & Mortar

  • E-commerce