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2023 Global Appliance Industry Report

Posted on July 5, 2023 By

The appliance market is a large household and commercial appliance industry. It includes electrical consumer appliances such as air conditioners, washing machines, clothes dryers, microwave ovens,

dishwashers, refrigerators, freezers, water heaters, kitchen stoves, and induction cookers. Values in this market are the value of goods sold by the manufacturers or creators of the goods or directly to end customers. Additionally, the value of goods in this sector includes related services sold by the products' creators. Historically, the market has been referred to as white goods because the products were made of white, enamel-coated materials. However, today, "white goods" are available in various colors.

The global market for appliance goods grew at a compound annual growth rate (CAGR) of 10%, from $609.66 billion in 2022 to $670.44 billion in 2023. The market expects to grow to $977.13 billion by 2027 at a CAGR of 9.9%.

By Region

In 2022, North America was the largest region in the appliance market, growing at a CAGR of 4.7%, with the Asia-Pacific region expected to be the fastest-growing area through 2027, advancing at a CAGR of 9.5%.

In North America, the market for air conditioners and refrigerators has shifted thanks to the development of home and kitchen equipment by globally operating companies in the region. Increased use of energy-efficient appliances to cut energy consumption expects to drive demand for new and innovative products in the region. Rising awareness of ENERGY STAR-certified products drives expansion in the United States. 

The Asia-Pacific region holds a significant market share, and growth can attribute to increasing urbanization, improving living standards and discretionary incomes, and growing millennial populations in countries such as India and China. The shift towards intelligent appliances in these countries expects to be a significant market growth driver. There is also growing competition among the electronic device manufacturers to offer better products.

By Product

The refrigerator segment owns a significant share of the appliance market and expects steady growth, advancing at a CAGR of 7.3%. This is due to the necessity and durability of the product, as well as rising consumer purchasing power and the availability of financing options. Future market growth can be aided by increasing consumer awareness of premium and sophisticated refrigerator brands.

The air conditioner space holds the second-largest share. The segment forecasts to grow significantly in the next few years due to the rising disposable income and increased product demand in emerging nations. Market demand expects to stem from increasing global temperatures and humidity, making AC units more of a necessity than a luxury. Increasing technological advancements in the product, such as inverter and air purification systems, also drive global demand for air conditioners in coming years.

By Distribution Channel

The appliance goods market is segmented based on distribution channels, including supermarkets, hypermarkets, specialty stores, department stores, and e-commerce.

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The specialty store segment expects to hold the largest distribution market share and forecasts to grow at a CAGR of 7.6%. Specialty stores focus only on particular product divisions, offering benefits such as giving consumers additional brand options in a specific product area and expert and educated staff input. In this setting, customers can compare and purchase several product parameters beyond those of a typical retail store offering fewer options.

The second largest share will continue to be held by the e-commerce segment. E-commerce is a preferred channel for buying appliances because it offers easy access to information, online demonstration videos, time-saving features, and home delivery options. These factors are all driving market expansion. Additionally, transportation convenience and globalization are boosting the development of online distribution of business-to-business white-goods products. 

Market Demand

Increasing residential demand for electronic devices like refrigerators, washing machines, dishwashers, and more drives the global appliance market. These products offer a range of benefits, such as cost-effectiveness, durability, efficiency, and the potential to improve housekeeping activities. The market will also see further growth driven by the growing reliance on technology, increasing disposable incomes, and advancements in the electronics industry.

Smart homes and smart appliances also see increasing adoption, driving the white goods market. Smart appliances connect to a central system that can be programmed or controlled remotely or operate autonomously based on AI data from sensors that report conditions such as temperature or light levels.

 Smart appliances are typically designed to work with other smart devices as part of a smart home system. Demand for these white goods is expected to grow in response to the growing consumer adoption of smart home technology. For example, a smart home study from May of 2022 reported that around 70% of U.S. consumers own at least one smart appliance product, and most plan to add more smart appliances.

Market Challenges

Believe it or not, more than a billion people (or 14% of the world's population) lacked access to household electricity in 2017. Most appliances are powered by electricity, and energy prices account for much domestic spending. This plays a crucial role in industrial competitiveness and impacts energy consumption patterns. A lack of adequate electricity in rural and remote areas hinders the purchase of appliances. 

Schedule A Call

Americas: Sam Smoot at +1 (813) 898 2350 /

Europe: Michael Lawrie at +44 (0) 161 359 4400 /

Africa: Anthony McCardle at +27 21 300 2055 / 


Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.






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