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Europe region is experiencing low-interest rates and a good economic situation with consumers showing interest in products in-home appliance market. The household appliances market in Europe is to see new opportunities for developing in the sector. The products in this market include not only major household appliances like large cooking appliances and refrigeration appliances, but also small household appliances such as small cooking appliances and vacuum cleaners.
The introduction of multifunctional products is one of the key trends being witnessed in the household appliances market in Europe. The growing demand for innovative and advanced products has driven the demand for and popularity of multifunctional household appliances in Europe. The multifunctionality of products not only delivers their basic features but also derives the highest value from the amount spent on a single product.
One of the key factors contributing to the growth of the household appliances market in Europe is product innovation and portfolio extension leading to product premiumization.
The Western European markets follow the growing trend that sees consumers in-home appliance market focusing on premium appliances. Multifunctional appliances with the premium price (for example wash dryer, hobs with integrated hoods or combi-steam ovens) are strong in demand and generate value growth. In Eastern Europe countries like Poland and Hungary were at the forefront of development in the region for the market.
Germany held the largest share of the market in Europe, the growth in the country is attributed to the significant lifestyle changes among consumers in the country.
Key Market Trends
Growth in Smart Home and Smart Appliance Market Driving the Industry
The number of smart households in the EU is expected to increase tenfold in the upcoming years. The annual revenue from energy managing in smart households in Europe is also expected to double in the coming years. Around 15 million people in Europe are using smart home appliances to meet their needs.
The European smart home appliances market is witnessing high growth. Factors such as the soaring need for energy-efficient appliances, and demand for comfort, coupled with high expenditure capability of end-users is driving the market growth.
European legislation has made appliances like washing machines and dishwashers, even more, water and energy-efficient than washing clothes and dishes by hand.
Some of the key driving factors behind the fast adoption and growth rate of smart home appliances in the European market include universal access to high-speed internet, introduction of smart meters, energy efficiency and energy savings, and favorable EU policies to support the digital economy in Europe. Another important reason behind the rising demand for smart home appliances is a tech-savvy young age group in Europe, as 37% of the Europeans who have embraced the new technology are between 25 and 34-years-old.
The smart appliances sector in Europe is also heavily contributing to Research and Development of these products with Germany, Italy, and Poland in the top position of countries investing in innovation.
Increase in Number of Units Traded of Washing Machine and Tumble Dryer
Washing machines are one of the essential home appliances for residential purposes. The washing machine market continues its substantial growth through 2018 in Europe. The market is mainly driven by rapid urbanization, the rising household disposable income and changing consumer preferences towards the home appliance market. Technological advancements that make washing machines more energy-efficient and eco-friendly are also facilitating the sales of washing machines in the region. Poland, known as the white goods manufacturing hub in Europe, is also one of the top washing machine manufacturers and washing machine suppliers in the world. As washing machine demand rises, the market for the washing machine in Poland is going to flourish in the future.
The sales of tumble dryers developed especially positively throughout the region. In Eastern Europe, fewer homes are equipped with tumble dryers than in Western Europe. Therefore, further above-average growth can be expected in this segment in the upcoming years in the region.
The home appliances market in Europe is moderately concentrated with the presence of many international and regional companies that offer major household appliances and small household appliances, and more. Companies operating in the household appliances market in Europe continuously engage in R&D and innovation to nurture in the competitive market environment. This is due to the growing competition and increased customer demand for innovative products. The major product innovations introduced are in terms of technology, performance, features, and design. Customers also look for household appliances that can perform multiple tasks with minimal resources.
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