The worldwide household appliances market is projected to reach $760 billions by 2025. In particular, growth in emerging markets is accelerating due to rapid urbanization and rise of the middle income group. This is in contrast to the moderating growth in global consumer appliances sales as growth in developed and mature markets stagnate.
The current low product penetration rate in emerging markets relative to developed economies indicates the enormous future growth potential in the emerging economies. This is especially since the demand for consumer appliances is predicated on the availability of basic amenities and infrastructure such as electric. For instance, only with availability of clean water will washing machines be sought after. Likewise, without stable and uninterrupted electricity supply, a refrigerator or an air-conditioner is nothing but a white elephant. As these basic infrastructure continues to improve in these emerging economies, demand for electrical appliances will grow in tandem.
Emerging markets has massive potential to drive future demand
The rapid urbanization, along with a rising middle class in emerging market are driving demand in these countries.
As illustrated from the graph below, the global revenue of smart appliances are increasing. By 2020, Asia Pacific countries, North America and Western Europe are projected to have more than 30% of connected appliance in the regional markets.