Important Alert:
Summary: The global home appliances market is growing fast, with India leading at 10.3% CAGR (2022-2028), driven by rising incomes, urbanisation, and smart appliances like IoT and AI-enabled products. Key opportunities lie in smaller cities and rural areas, while businesses must tackle price sensitivity and supply chain challenges to succeed.
Key takeaways:-
The global market for home appliances was estimated at a valuation of USD 708.15 billion in 2023, with a projected valuation of USD 1,203.11 by 2032. This puts the projected CAGR at 6.2% during this forecast period.
Get insights on evolving customer behaviour, high volume keywords, search trends, and more.
Across the world, individuals have evolved towards improved standards of living, increased spending, and changing demands. These factors have boosted significant growth in the home appliance market across countries. As technology advanced in the 2000s, the demand for smart appliances in the market grew significantly. These devices exemplified energy efficiency and highly advanced features, which brands use to attract customers and increase market growth.
Additionally, the acceptance of work-from-home culture during the global pandemic of 2020 resulted in people spending more time at home, encouraging them to make their homes more comfortable. The demand for home appliances rose significantly during this period. The increasing spending power and rising population, especially in developing countries, have contributed to diverse lifestyle choices that drove market growth.
The new home market significantly impacts the household appliance market, which in turn impacts the home improvement sector. Since these products have a relatively higher price than other household products, they generally make for the highest median spends among consumers.
In recent years, the home appliances market has faced challenges to market growth due to several factors such as stock availability and limited consumer needs. Since these large appliances are purchased largely in single digits only once or twice a decade, remarketing or retargetting customers is often ineffective.
Understanding home appliances trends can help business owners understand evolving customer needs and behaviours. Techmagnate has released its Home Appliances Search Trends Report outlining home appliances search trends, insights on how consumers shop for home appliances online and where they are located. Businesses looking to stay ahead in the market must understand the market trends and adapt to them to meet the ever-changing needs of the educated consumer.
The current economic and financial instability in India along with the rest of the world is a significant factor in the mind of the Indian consumer. This means an increased price sensitivity and hesitation towards large purchases in general, which includes home appliances. Today, retailers and manufacturers need to be aware of the home appliance search trends and the latest developments in consumer preferences, purchase motivators and challenges of consumers. This is the only way to capture a part of the projected growth in the coming years.
The home appliances market in India generated USD 19,081.1 million in revenue in 2021, with an estimated valuation of USD 37,818 million by 2028. This places the Indian market’s growth at a 10.3% CAGR between 2022 and 2028, higher than the global market growth rate.
According to our Home Appliances Search Trends Report, the search volume of keywords related to home appliances has grown by 18.41% in FY 2023-24. Delhi continues to be the top city where online home appliances search volumes are the highest, with a market share of 24% and a growth rate of 7.26% from FY 2023 to 2024.
Top 6 Cities
| Cities | Search volume FY 2022-23 | Search volume FY 2023-24 | % growth | Market share |
|---|---|---|---|---|
| Delhi | 20.22L | 21.69L | 7.26 | 24.42 |
| Bengaluru | 14.99L | 18.21L | 21.51 | 20.50 |
| Hyderabad | 12.70L | 16.01L | 18.21 | 16.90 |
| Chennai | 10.70L | 13.51L | 26.27 | 15.21 |
| Mumbai | 11.20L | 12.81L | 14.37 | 14.42 |
| Pune | 6.97L | 7.60L | 9.08 | 8.55 |
| Total | 76.78L | 88.83L | 15.70 | 100% |
Note: K = Thousand | L = Lakh (1 Lakh = 100,000) | Cr = Crore (1 Crore = 10 Million) | SV = Avg. Monthly Search Volume. Traffic & Sessions are as per SEMrush.
1. Consumers are Spending More on White Goods
Home appliances are catalysts for several key operations within the household such as washing, cleaning, cooking and more. The growing demand for refrigerators, washing appliances, kitchen appliances and air conditioning appliances is a direct result of increased disposable incomes, a larger global population and better standards of living. The growth in the consumer’s purchasing power especially in developing markets has led to a surge in the demand for more and varied home appliances. The latest developments in home appliances have made products like refrigerators and air conditioners more expensive and can only be purchased by consumers with significant disposable income.
2. Shifting Consumer Behaviour Due to Improved Standards of Living
Consumers who understand technology generally make their buying decisions based on their knowledge and lean towards smart appliances for their home aimed at enhancing their quality of life.
The rapidly rising number of internet users has also significantly modified customer preferences to choose high-tech products for their daily domestic operations. This has significantly impacted the growth of the global home appliances market. Additionally, upcoming technologies have also significantly boosted the market value of the home appliance market overall with new energy-efficient and technology-enabled devices.
Today, more and more home appliance manufacturers are prioritising smart appliances with increased energy efficiency due to an increased preference for energy conservation optimisation.
As more Indian consumers move up into the Indian middle class, more homes can afford smart home appliances. This shift in the consumer demographic has driven up the demand for premium products aimed at a better standard of living and increased convenience.
Tier II and Tier III cities:
With urbanisation going beyond just metro cities, there are growing opportunities in tier II and tier III cities. More and more home appliance manufacturers are tapping into these markets using affordable appliances and easy payment options.
Rural Market Penetration:
India’s rural market offers a significant opportunity for even basic appliances such as refrigerators and washing machines. Targeting rural audiences with these appliances can significantly increase the market size on the home appliances market in India.
| Cities | Search volume FY 22-23 | Search volume FY 23-24 | % growth | Market share |
|---|---|---|---|---|
| Lucknow | 5.81L | 6.90L | 18.86% | 18.85% |
| Jaipur | 4.71L | 5.36L | 13.77% | 14.63% |
| Indore | 3.01L | 4.46L | 23.49% | 12.18% |
| Coimbatore | 3.62L | 4.01L | 10.58% | 10.94% |
| Nagpur | 3.10L | 3.24L | 4.33% | 8.84% |
| Ludhiana | 3.10L | 3.20L | 3.15% | 8.73% |
| Surat | 3.04L | 3.07L | 0.94% | 8.37% |
| Vishakhapatnam | 2.27L | 2.61L | 14.99% | 7.12% |
| Vadodara | 2.07L | 2.06L | -0.71% | 5.61% |
| Bhopal | 1.78L | 1.73L | -2.61% | 4.73% |
| Total | 33.11L | 36.63L | 10.62% | 100.00% |
Note: K = Thousand | L = Lakh (1 Lakh = 100,000) | Cr = Crore (1 Crore = 10 Million) | SV = Avg. Monthly Search Volume. Traffic & Sessions are as per SEMrush.
The rise of smart homes and connected appliances have revolutionised how consumers experience and interact with their homes. Smart appliances use IoT technology (Internet of Things) that allows them to connect with the internet and wifi networks and perform tasks remotely using voice assistance or smartphones. This helps consumers monitor and control their home appliances from anywhere, ensuring convenience and peace of mind. Additionally, these devices also ensure energy and cost savings by identifying product usage patterns and reducing utility bills.
In February 2021, Panasonic Holdings Corp announced that it was expanding its AI-enabled range of appliances like air conditioners, refrigerators and washing machines to the Indian market. With more consumers becoming tech-savvy while choosing new home appliances, major appliance manufacturers have started focusing on new energy-efficient and smart technology-enabled offerings.
With smart home appliances now easily connecting to wearable technology and smartphones, their role in the Indian household is expanding rapidly. IoT-enabled devices are quickly moving into the B2C space and the Indian home, which presents exciting opportunities for convenience and innovation. One of the most significant trends is the increase in connectivity. Consumers can expect appliances that can function independently without human intervention soon enough. Such devices will be more intelligent than before, adapt to usage behaviour patterns and become proactive in assessing consumer needs.
Top 10 search buckets
| Buckets | Search volume FY 22-23 | Search volume FY 23-24 | % growth | Market share |
|---|---|---|---|---|
| Appliance name | 202.88L | 242.44L | 19.50% | 65.05% |
| Price | 71.00L | 79.75L | 12.32% | 21.40% |
| Top/best | 11.87L | 14.22L | 19.80% | 3.81% |
| Mini/small | 8.95L | 11.89L | 32.86% | 3.19% |
| Portable/Compact | 5.59L | 6.58L | 17.78% | 1.77% |
| Service | 4.51L | 6.35L | 40.73% | 1.70% |
| Repair | 3.51L | 4.34L | 23.52% | 1.16% |
| Solar powered | 1.68L | 1.80L | 6.81% | 0.48% |
| Second hand/refurbished | 1.25L | 1.51L | 20.90% | 0.40% |
| Online | 1.46L | 1.32L | -9.58% | 0.35% |
| Others (10) | 2.06L | 2.52L | 22.31% | 0.68% |
| Total | 314.76L | 372.72L | 18.41% | 100.00% |
Note: K = Thousand | L = Lakh (1 Lakh = 100,000) | Cr = Crore (1 Crore = 10 Million) | SV = Avg. Monthly Search Volume. Traffic & Sessions are as per SEMrush.
More consumers have started focusing on environmental conservation and sustainable living practices. This has resulted in a higher demand for energy-efficient products that don’t use too much power and are low on emissions. In the table above from Techmagnate’s Home Appliances Search Trends Report, solar-powered appliances have seen an increase of 6.81%, while searches with top or best have grown by 19.80%.
Smart devices and compact appliances are huge on energy savings. While a large segment of Indian consumers are still on the fence about choosing smart appliances, they are definitely looking for compact devices that perform the same functions without high energy usage. The table above shows that there was a rise in the search for mini/small appliances as well as portable/compact devices, rising by 32.86% and 17.78% respectively.
Consumer expectations are changing across demographics. The integration of technology with home appliances, improving standards of living and other factors have transformed consumer expectations. In tier II and III cities as well, the searches for home appliances continue to grow, as seen in the table above.
City-Wise Search Volumes
| Cities | Search volume FY 22-23 | Search volume FY 23-24 | % growth | Market share |
|---|---|---|---|---|
| Top 6 cities | 76.78L | 88.83L | 13.57% | 23.83% |
| Next 10 cities | 33.11L | 36.63L | 9.60% | 9.83% |
| Others | 204.87L | 247.26L | 17.14% | 66.34% |
| Total | 314.76L | 372.72L | 15.55% | 100% |
Note: K = Thousand | L = Lakh (1 Lakh = 100,000) | Cr = Crore (1 Crore = 10 Million) | SV = Avg. Monthly Search Volume. Traffic & Sessions are as per SEMrush.
Take a look at the top 10 brands by search volume, according to our new Search Trends Report.
| Brand | Search Volume FY 2022-23 | Search Volume FY 2023-24 | % growth | Market share |
|---|---|---|---|---|
| LG | 21.22L | 25.27L | 19.07% | 16.48% |
| Samsung | 10.26L | 11.16L | 8.80% | 7.28% |
| Voltas | 6.92L | 8.38L | 21.11% | 5.46% |
| Whirlpool | 6.38L | 7.15L | 12.12% | 4.67% |
| Crompton | 5.49L | 6.69L | 21.89% | 4.36% |
| Havells | 5.81L | 6.52L | 12.29% | 4.25% |
| Bajaj | 5.85L | 6.48L | 10.68% | 4.22% |
| Haier | 4.71L | 5.71L | 21.38% | 3.73% |
| Blue Star | 4.05L | 5.47L | 34.97% | 3.57% |
| IFB | 4.14L | 4.64L | 12.19L | 3.03% |
| Others (28) | 58.07L | 65.85L | 13.40% | 42.95% |
| Total | 132.88L | 153.31L | 15.38% | 100% |
Note: K = Thousand | L = Lakh (1 Lakh = 100,000) | Cr = Crore (1 Crore = 10 Million) | SV = Avg. Monthly Search Volume. Traffic & Sessions are as per SEMrush.
These brands continue to stay at the top when it comes to customer preferences for home appliances. If your business aims to stay ahead in a rapidly growing and evolving market, here are a few strategies to adopt.
With the growing acceptance of IoT technology, IoT-enabled devices have changed the way consumers interact with their homes and appliances. These devices create homes that are more secure, environment-friendly and efficient, ensuring greater convenience. Another leading benefit of these smart appliances is their energy optimisation capabilities. Using smart sensors and AI algorithms, they analyse real-time data and usage patterns to optimise energy consumption.
As we undergo a technology revolution, it seems smart appliances are here to stay. And with the growing concerns around environmental protection, the demand for energy-efficient products has grown significantly. Consumers are more inclined to choose products with better energy optimisation and reduced carbon footprints.
With efficiency and convenience becoming one of the top consumer demands in every domain, e-commerce sites are becoming the primary platforms for home appliance purchasing and distribution. Online stores offer a greater selection and visibility of product availability beyond just a single store and showcase greater options and competitive prices. Leveraging a data-driven SEO strategy for e-commerce websites can help businesses sustain significant growth in demand and revenue.
While the home appliances industry is growing significantly, businesses must expect several challenges as well.
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