London—The global market for major home appliances is forecast to enjoy solid growth by year-end compared to a marginal increase last year, boosted this time by economic gains within emerging markets where demand for appliances has soared, according to a report from IHS Inc.
Worldwide shipments of major home appliances including room air conditioners, dishwashers and a broad range of devices associated with laundry, refrigeration and cooking are set to reach 583 million units at the close of 2013, up 4.5 percent from 558 million units in 2012.
This year’s projected expansion is a vast improvement from just a 1 percent uptick in 2012 after market-stimulating factors, such as government subsidies for consumer appliances in China, ended in 2011, according to the findings contained in the report entitled “Major Home Appliances – World – 2013.” Prior to 2012, the home appliances trade had enjoyed a robust increase of more than 10 percent in 2010 and almost 5 percent in 2011.
The growth to be experienced in 2013 is expected to continue for the next few years with nearly 5 percent annual expansion until at least the end of the forecast period in 2017. By then, annual shipments are projected to exceed 700 million units, as shown in the attached figure.
More than 50 percent of total volume in 2017 is anticipated to come from the Asia-Pacific region, with China accounting for nearly one-third of the overall market and India contributing another 10 percent. Meanwhile, appliance consumption in India and Turkey is forecast to grow rapidly at an average of 9 percent per year until 2017.
“Improved economic conditions and a new boom in housing will fuel growth in the areas where home appliances are predicted to sell strongly,” said Dinesh Kithany, senior analyst for home appliance research at IHS.
“Factors driving overall market growth will include the introduction of energy-efficiency legislation, government-backed incentives and rebate programs, tax-incentive schemes, better financing plans and a move among consumers toward appliances that feature reduced power consumption,” Kithany added.
Among major home appliances, room air conditioners will post the strongest performance this year, up 7 percent in shipments compared to a 2 percent decline in 2012. The shipment growth is projected to be highest at 10 percent in China, India and Turkey, which together account for more than half of the global room air conditioner trade.