In 2023, small appliances saw growth, as consumers replaced their small appliances purchased during the pandemic, especially as many continue to adopt hybrid or remote working. The industry has strong growth prospects over the forecast period, with trends such as smart home and AI-enabled features enhancing consumers’ experience at home. Furthermore, manufacturers are going beyond just selling products by providing continuous service options throughout the appliance’s life cycle.
This report comes in PPT.
AI took over CES2024, becoming a priority for manufacturers with products such as air conditioner, coffee machine, and robotic vacuum cleaners utilising the technology to enhance user experience. Midea’s Barista Brew utilises AI technology to personalise recommend combinations of brews and coffee beans, while gaining feedback from consumers to understand which flavour profile fits each user’s taste buds.
Young and tech savvy consumers are increasingly looking for personalised product design, with a significant focus on aesthetics. Midea’s Penrose Air and Samsung Bespoke Air Conditioner are at the forefront of this, allowing consumers to choose their preferred colour panel to fit their home design. At the same time, AI features in air conditioner help personalise consumers’ home experience by adjusting temperature based on the room conditions.
The UN predicts that heatwaves will continue breaking records over the coming years. To cope with the heatwaves and increasing surface temperatures, consumers will be forced to look for long-term cooling solutions. Consumers in Western countries are looking to install heat pumps, especially with governments heavily subsidising installation costs. Meanwhile, consumers in tropical countries will considering installing more or better air conditioners.
Small appliances manufacturers have opportunities for partnerships with various industries in order to go beyond selling products, and focus on offering services for continued consumer engagement, driving business models towards “servitisation”. Tineco’s smart cooking machine, for example, allows consumers to order food ingredients from its mobile application based on a recipe, and the machine can then cook the food itself.
With growing awareness of how new technology can help save time, improve health and enhance the home experience, consumers are looking to upgrade their small appliances. However, price can be a barrier to entry for many, leading manufacturers to release more affordable products. Given the high unit price of Thermomix, for example, recent products from Tineco, Midea, Tokit and Cecotec offer similar functions at significantly lower prices.
Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.
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