Household Refrigerators And Freezers Market is expected to grow at a CAGR of over 7% from 2016 to 2025
The global household refrigerators & freezers market is expected to reach USD 37.6 billion by 2025, according to a new report by Grand View Research, Inc. High replacement demand and resulting obsolescence of conventional freezers & refrigeration units is expected to have a positive impact on the high-end product segment growth over the next nine years.
Key factors driving the industry growth include the rise in nuclear families, increasing disposable income, focus on enhanced lifestyle products and dual income families. Technology efforts are focused on improving the inside equipment structure whereas R&D enables their easy operation. Advancements in refrigeration technology such as touch screen, USB and internet connectivity are gaining importance. For instance, General Electric introduced magnetic refrigeration technology, which is 20% more efficient as compared to traditional products. Additionally, advances in cooling technology such as the use of propane as a refrigerant are offering the cost-effective and energy-efficient alternative to conventional equipment.
The impact of government regulations is driving the transformation of household refrigeration segment. The U.S. Environmental Protection Agency has approved the use of isobutene, propane and R-441A as acceptable refrigerants for replacing the ozone-depleting substances in household refrigerators. Manufactures are strengthening their position in the high-end products, developing service and aftermarket operations.
Further key findings from the report suggest:
- The high-end refrigerators segment is anticipated to grow at a CAGR of over 7% from 2016 to 2025. Increasing demand for frost-free and double-door refrigerators is expected to open new growth avenues in this segment.
- Europe is expected to account for over 21% and 24% revenue & volume share respectively by 2025. The growth in the region can be attributed to the increased demand for processed and frozen food. In Eastern Europe, Russia has a high penetration of refrigeration equipment as these products are manufactured in the country under license from foreign companies.
- Western Europe is one of the key regions characterized by the pricing pressures owing to the increased global competition and presence of large brands, retailers and manufacturers.
- The Middle East & Africa household refrigerators & freezers market is expected to grow at a CAGR of over 7.2% from 2016 to 2025. The growth in the regional consumer appliances industry is expected to propel the demand for cooling products. Additionally, the Middle East offers a base for the regional manufacturing sector.
- The key players in the household refrigerators & freezers market include Samsung Electronics, LG Corporation, Haier Group, AB Electrolux, and The Whirlpool Corporationamong others. Key players are focusing on product transition owing to favorable component pricing coupled with continuous efficiency in the manufacturing process.