Market Overview
The Global Electrical Goods Market is expected to reach at a Significant CAGR during the forecast period 2024-2031.
BS 7671 regulations define an electrical goods/appliance as "any item of current-using equipment other than a luminaire (light fitting) or an independent motor." Electrical goods are commonly found in domestic, commercial, and industrial settings, while the phrase is most commonly used to refer to equipment found in homes and businesses. Electrical appliances in buildings can range from handheld or portable devices to those suited for stationary use. Many of these products are connected to the power source via a flexible cable and plug and socket arrangement, while others are permanently hooked in. Electrical equipment, aside from those for use in private residences, is frequently subjected to routine testing and inspection to provide continuing safety assurance. 'PAT testing' (Portable Appliance Testing) is a type of testing used to meet the Electricity at Work Regulations 1989 (SI 1989/635) requirements.
Our research reports cover major insights on the electrical goods market size, share, growing demand, new trends analysis, recent developments, mergers, and acquisitions, market drivers, opportunities, major challenges, industry leaders, company profiles analysis, market segments analysis, global, regional and country-level growth insights, business development strategies insights, competitive landscape analysis and other key analysis are includes in this research report.
Market Summary
| Metrics | Details |
| Market CAGR | Prominent Growth |
| Segments Covered | By Product, By Distributional Channel, By End-user, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | Asia Pacific |
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Market Dynamics
The constant innovations in the electrical goods industry stimulate the market and act as a major market driver. However, the apprehensions about raw material supply, growing energy crunch and noise pollution associated with electrical goods are a market restrain.
The constant innovations in the electrical goods market
The constant need for newer and quicker electrical equipment and applications is fueled by the high rate of technological innovation in the electrical equipment industry. Technological advancements are critical in encouraging consumers and corporate users to replace or upgrade older items with more advanced versions. The internet of things (IoT), smart grids, and energy-efficient lighting technologies are projected to contribute to modern electronic equipment development and likely boost demand for electrical equipment, propelling the market forward.
Further, Artificial intelligence (AI) and machine learning (ML) electrical equipment manufacturers use applications to increase production efficiency, save costs and reduce manufacturing errors. Artificial intelligence (AI) is a type of machine learning that employs human intellect functions such as reasoning and problem-solving to gain insights and give usable data. Electrical equipment manufacturers use AI applications to address complicated challenges such as high precision and a highly dynamic production environment.
For instance, on February 24, 2022, Bosch Home Appliances announced that the company would invest US$ 113.31 million in personalizing solutions, brand building, developing its technology center and UX research, and establishing a robust refrigerator manufacturing in India. With its IoT-based product solutions, Bosch will focus on connectivity, expand its entry-level portfolio, introduce relevant global products, and create new digital business models for customer value (D2C) over the next three to four years. As a result, the electrical goods market's constant innovations could be considered a major market driver.
The apprehensions about raw material supply
Fluctuations in the supply of raw materials pose a danger to the global electrical appliance market. While corporations can endure significant price variations in their products, the insecurity of raw material supply can have an impact on production and demand, as well as the accompanying revenue, profitability, and R&D investments. As the world rebounds from the COVID impact, high commodity prices have kept businesses and governments on their toes in recent months. The price rally for various raw materials used in almost every industrial product, such as steel, copper, zinc, aluminum, nickel, lead, cement, and more, as well as higher crude oil prices due to a variety of factors, has had a cascading effect on micro, small and medium enterprises in electrical and electronics manufacturing sector, among others.
Further, due to shortages in components such as semiconductors and chips, the domestic appliances and consumer electronics industry expects the situation to endure not just through 2022 but also into 2023, according to the industry association CEAMA. According to the Consumer Electronics and Appliance Firms Association, several manufacturers who use chips as inputs are currently experiencing capacity constraints and predict a delay in launching new goods. Furthermore, a shortage of chips, combined with increased ferrous goods, has offset the softening of prices in the industry after price adjustments in other commodities such as resins and chemicals.
Similarly, the rise of smart gadgets, robots, and connected living is another threat. Traditional versions of numerous electrical appliances are in danger of extinction because of electrical appliances specifically intended for such functions. However, the aforementioned raw materials are vital to constructing these high-tech devices. As a result, the apprehensions about raw material supply could be considered a major factor that hampers the growth of the global market for electrical goods.
COVID-19 Impact Analysis on Market
The supply chain was the first and most severe impact of the pandemic on the market, affecting raw material availability and end product sales. Second, the manufacture of electrical items needs a variety of industrial procedures that have been severely hampered by the COVID-19 pandemic's lockdowns and government restrictions.
Similarly, compared to pre-COVID, the price impact on plastics, metals, and even electronic components is significant. Sadly, MSMEs are unable to pass on these costs to their clients. Steel, aluminum, copper, and other metals have nearly doubled in price. The same is true in the case of plastics. Polyamide and polycarbonate have also increased by a factor of two. The other issue has been logistics, particularly for exports, in container load and container cost.
Nonetheless, the market for electrical goods is likely to recover due to the growing urbanization, globalization, and lack of time in modernity. Since electrical goods play a vital role in making everyday life easier with less time consumption, the demand for the respective products in the global economy would experience a major market surge in the future. The rise of autonomous electrical products that do tasks at the touch of a button could also boost the market on the aforementioned grounds.
Market Segmentation Analysis
The global electrical goods market is classified based on product type and region.
The refrigeration appliances dominate the product type segment
The global electrical goods market is segmented into refrigeration appliances, laundry appliances, dishwashers, air treatment products, microwaves, small cooking appliances, vacuum cleaners, food preparation appliances, and others based on product type. Refrigeration appliances dominate the market due to the following factors:
Refrigeration appliances are commonly utilized in both homes and businesses to provide a handy and safe way of preserving food and are available in various shapes and sizes, as well as features and uses. Refrigerators are currently becoming more common in homes for daily kitchen use. As a result, rising house building is likely to promote refrigerated appliance adoption.
To attract end-users, industry manufacturers are introducing a higher level of luxury and new refrigeration products. In addition, to avoid food spoiling and have an effective food storage system, refrigeration units with high cooling features are often used in hotels and quick-service restaurants. As a result, as demand for hotel and hospitality items grows, so will sales of high-end refrigeration products.
The rising number of ice cream parlors and bars would increase freezer consumption. Refrigerators are necessary for giving specific chilling range options in the freezer, mostly used to store cold drinks and ice creams at ice cream parlors and bars. Furthermore, the increasing consumption of various frozen and processed food items globally is expected to increase the need for refrigeration appliances. Similarly, the growth of self-contained products that perform functions at the touch of a button is also a major factor that boosts the growth of refrigeration appliances.
Market Geographical Share
Asia-Pacific dominates the global electrical goods market
The Asia-Pacific dominates the regional segment due to rising disposable incomes and fast urbanization, along with inventive and appealing advertising by manufacturing corporations, which have produced a potentially disruptive market environment. Due to the increase in the number of urban residents and middle-class families, low-cost appliances have dominated the market, with buyers eager to try out the latest technology. The high cost of certain critical products has slowed expansion, but China's low-cost manufactured products have dominated the industry and helped it strengthen its position in the Asia-Pacific household appliance market.
In the developing countries in the Asia-Pacific, the market is likely to rise at a faster rate, fueled by the majority of homes in the region purchasing electrical items for the first time. China has the world's fastest-growing market for electrical goods and many countries purchase household appliances from China because they are technologically advanced and reasonably inexpensive.
Market Companies and Competitive Landscape
The global electrical goods industry is active and dynamic in terms of the quantity and strength of global and local producers. The market is classed as fragmented due to the huge number of manufacturers, including Haier Group, BSH Hausgeräte GmbH, Whirlpool Corporation, AB Electrolux, Gree Electric Appliances Inc, Koninklijke Philips N.V., LG Electronics, Panasonic Corporation, Hitachi Ltd and Glen Dimplex Group, SAMSUNG, Blue Star LimitedBlue Star Limited, Robert Bosch GmbH, TCL, SHARP CORPORATION, The Middleby Corporation, and Arçelik. Significant market stakeholders employ market tactics like mergers, acquisitions, product launches, contributions, and collaborations to gain competitive advantages and recognition in their respective markets.
- For instance, on December 03, 2022, Microtek, a power appliance maker, announced its plan to invest Rs 500 crore in an electric product business over the next year (2022) and a majority of the investment will go to research & development as well as increasing product manufacturing.
- On December 21, 2022, V-Guard Industries Limited (VGIL) approved a Scheme of Amalgamation between the company Simon Electric Private Limited (SEPL) and their respective Shareholders and Creditors at their meeting based on the recommendation of the Audit Committee and Independent Directors Committee.
- Similarly, on October 21, 2019, Reliance Retail secured an exclusive brand licensing, manufacturing, marketing, and distribution contract with Swedish appliance company Electrolux for Kelvinator. In addition, On October 07, 2022, Siemens AG, a German conglomerate, announced the completion of its five-year strategic plan for India, and its investments in the nation are likely to be "more ambitious" than before, according to global chief executive Roland Busch.
BSH Hausgeräte GmbH
Overview: BSH Hausgeräte GmbH is a European home appliance manufacturer and one of the world's leading firms in the field. The company was founded in May 1967 as a joint venture between Robert Bosch GmbH (Stuttgart) and Siemens AG (Munich) and in 2020, it had annual revenues of 13.9 million euros. BSH has 40 plants across Europe, the U.S., Latin America, and Asia. The BSH conglomerate now consists of over 80 companies in 50 countries, with a total workforce of about 60,000 people, thanks to a global network of sales, production, and service organizations. Large home appliances for cooking, dishwashing, laundry, and refrigeration, as well as a variety of minor appliances, are all part of the BSH product line.
Brand Portfolio:
- Bosch: Bosch impresses consumers with high-quality goods and simple solutions that provide ideal results, including large home appliances for cooking, laundry, refrigeration, and dishwashing, as well as small home appliances. Bosch, Europe's market leader in large domestic appliances, is currently focusing on expanding in China and emerging regions.
Key Developments:
- On January 25, 2020, Siemens India, a subsidiary of BSH Hausgeräte GmbH, agreed to buy C&S Electric, a Delhi-based electrical and electronic equipment manufacturer, for Rs 2,100 crore in cash, making it the group's largest acquisition in the nation to date. The agreement would help Siemens improve its position in the country as a provider of low-voltage power distribution and electrical installation technology.
- On July 8, 2022, BSH India, a subsidiary of BSH Hausgeräte GmbH, announced the launch of a new and improved range of premium washing machines as part of their plan to increase the premium washing machine category. The new range includes first-in-India features such as Home Connect (in the 8 to 9kg range), anti-wrinkle technology (in the 6 to 8kg range), Automated Intelligent dosage (I-Dos) in the 9 to 10kg range, and innovative active oxygen technology that removes bad odor and refreshes clothes without using water to keep up with changing consumer needs and laundry habits.
The global electrical goods market report would provide approximately 46 tables, 42 figures, and almost 207 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Emerging Companies
