The North American home appliances market is thriving due to the potential it holds to grow and address consumer’s needs. Consumers are giving more preference to purchase the products, which are efficient and consume less power. Small appliances, like vacuum cleaners, coffee makers, toasters, hairdryers, curlers, kettles, steam units, and fryers, are showing constant growth when compared to large appliances, like refrigerators, washing machines, dryers, freezers, dishwashers, and microwave ovens, among others.
The products with multi-utility features, which look simple yet fashionable than the usual ones, and which are aesthetically pleasing are gaining more significance. These products are widely appreciated by the consumers, as the majority of customers are youths in the region, According to the population stats, 39.29% of the United States’ population and 39.62% of Canada’s population are in 25-54 years, which a huge potential market base.
In the small home appliance segment, the Vacuum Cleaner market is expected to grow at a CAGR of 2% from 2020 to 2025. According to reports, North American households have approximately 85% of the penetration of vacuum cleaners in the market. Powerful vacuum cleaners that are versatile are leading to the growth of the segment. There is an increase in imports of vacuum cleaners lately. Automatic and robotic vacuum cleaners are also demanded within the region. An increase in smart homes is leading to the demand for Cordless vacuum cleaners are the latest trend in the market.
Smart home appliances sales were doubled in 2019 from the previous year, and they are increasing in a constant manner. The revenue of the market studied hit its all-time high with USD 8,481 million in 2019. The market for these smart and small home appliances is expected to increase, owing to the factors, like their less presence rate in the market, the improving innovation and automation they hold, affordable prices, and the precision they bring in the task at hand. These products are easing the lives of the working population (around 61% in the United States and 60.9% in Canada), which comforts consumers by minimizing the time they spend on the tasks.
In the major appliance segment, Ranges and Ovens category is projected to have higher growth in the North American market as compared to other large appliances. The increasing trend of modular kitchen is driving the growth of this segment. Convection ovens are currently dominating the market, while grill ovens are expected to show a higher growth rate as well.
Another major appliance that is booming is Refrigerators, household appliances such as refrigerators work for 24 hours a day for households so consumers are preferring for appliances that are energy savers. Accurate size and capacity of appliances are highly looked upon while buying appliances such as refrigerators, freezers, dishwashers, etc. High efficiency, superior design, and better-insulated appliances are gaining traction in the market.
Refrigerators occupy the major share in the home appliances market in sales volume, followed by washing machines. Samsung accounted for 22.3% of the refrigerator segment, and 20.4% in the washing machine segment in the market.
Moreover, environmentally friendly products are also gaining considerable significance in recent times, products with enhancing quality standards, less power consumption, less or limited harmful emissions, technology advancements, better wireless goods, ease of access, and in-built and chargeable invertor have been the most prominent revenue form for manufacturers.
The major Household appliance manufacturing is highly globalized. The major home appliance market of North America is homogeneous and matured, with Samsung, LG, Electrolux AB, Whirlpool Corporation, Maytag, Panasonic Corporation, and Haier Group being the major player in the region.
Samsung is ahead of Whirlpool and LG Electronics, in the home appliances business. As of Q1 2020, the firm occupies 19.9% in the market share by value, followed by Whirlpool home appliances with 16.3%, while LG Electronics accounted for 15.7% in the home appliances market in the United States.
The influence of social media on consumer’s decision-making process, before purchasing a product or goods, has been increasing. Social network users are using social media, to find product reviews and information before purchasing any products. Moreover, the majority of the users prefer to share their reviews about the products on different social networking sites after using it.
In the North American region, the e-market penetration is high, resulting in the sales volume generated through it. In the home appliances market, most sales are led by major online platforms, like Amazon. Though the region is a bit tough to penetrate for other region manufacturers, many global manufacturers have been trying to enter the market. The customers are highly open to experimenting in most of the regions. However, benefits, like easy returns, post-sale support provided by online retailers, and free and one-day delivery features, are attracting a large number of customers towards online shopping.
Lastly, there are few issues of concern, due to the high cost of manufacturing in the United States, many companies are offshoring products from other countries. Additionally, the appreciation of the US currency has led to more imports driven sales than export-driven. Nevertheless, the growth in disposable income and the expansion of the housing market have mitigated the negative effects associated with the appreciation of the dollar.
The Canadian large home appliance market is growing moderately with the rising costs of manufacturing in Canada. Therefore, many manufacturers are shifting their factories to countries where cheap labors are available. Moreover, an increase in trade tensions between China and the US might restrain the growth of the market.