Larger capacities in demand.
The global major domestic appliances (MDA) market saw 3.5% growth in the first six months of 2018, according to new data released by GfK. For the full year, total sales are expected to hit 178 billion Euro ($287 billion) – a 2.2% increase year-on-year, assuming a fixed exchange rate.
Asia Pacific (APAC) stayed on a growth track contributing 66% of total growth, with the help of China and Vietnam. Germany remains the third largest MDA market in the world.
According to GfK expert for domestic appliances, Norbert Herzog, capacity is driving all major markets. “Big is beautiful in major domestic appliances,” he said.
“This translates into increasingly larger loading capacities in washing machines, taller and wider refrigerators, as well as more spacious oven cavities.”
Growing wealth especially in developed countries meets with a high willingness to invest in technical consumer goods with sales in the premium segment above 800 Euro ($1,290) growing by 11%.
“Hence, an increasing share of budgets are quite premium and allow purchases of recent innovations,” Herzog said. “In particular, hobs with integrated hoods, multi-door refrigerators and washing machines with drying functions.”
When it comes to connectivity, China alone accounted for nearly 50% of all smart appliances sold in the first half of 2018, with growth rates of around 30%. In APAC, 23% of revenues are invested in smart appliances compared to only 10% in Western or Eastern Europe. The German market for smart appliances grew by 50% in the first half.