Refrigerator Market size is set to surpass USD 150 billion by 2027, according to a new research report by Global Market Insights Inc.
An increase in household consumption and spending capacity has resulted in a higher market demand for major household appliances globally. According to the FRED Economic Data, the private consumption expenditure in Brazil reached USD 906.62 billion in 2020. The rising consumption expenditure will fuel the adoption of refrigerators in the household segment over the forecast timeframe.
A shift toward energy-efficient and water conserving appliances will create ample of market growth opportunities for manufacturers during the forecast timeline. The refrigerator market expansion is technologically driven. Consumers are preferring smart refrigerators as opposed to the conventional models due to their multifunctionality and energy-conserving features. With an increase in purchasing power and lifestyle improvements, consumers are willing to invest more in these appliances, propelling the market progression of refrigerators.
The high initial purchase costs and long product lifecycle discourage consumers to replace their old refrigerators with new ones, limiting the market value. According to the U.S. Department of Energy, the average product life of refrigerators is over 12 years. A longer lifetime of products often restricts people from making frequent purchases of durable products. The easy availability of spare parts of refrigerators in retail stores and on e-commerce platforms encourages consumers to replace the broken components instead of purchasing new appliances.
The COVID-19 pandemic adversely impacted the refrigerator market in 2020. Market revenues witnessed a decline owing to the shortage of raw materials, electronic components, and labor supply in the initial lockdown period. The shutdown of retail stores resulted in a declining demand for consumer electronics products in 2020. However, this provided new market opportunities to e-commerce players such as Amazon and eBay. Contactless delivery and easy EMI options offered by e-commerce websites increased the industry growth of refrigerators and other consumer electronics through the online distribution channels in 2020.
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Increasing usage of built-in handle refrigerators due to the easy cleaning and low maintenance requirements
The built-in handle segment dominated more than 60% of revenue share in 2020. Refrigerators with built-in handles are highly adopted in kitchens with limited space and also offer a modern look to the kitchen. Furthermore, refrigerators with an external handle require frequent cleaning to avoid germs and fingerprints. Built-in handle models require less cleaning and maintenance requirements, fostering the industry expansion.
Browse key industry insights spread across 630 pages with 1187 market data tables and 32 figures & charts from the report, “ Refrigerator Market Size By Door Type (Glass, Sheet [PCM, VCM]), By Door Handle Type (External, Built-in [Sliding Door, Swinging/Fixed Door]), By Door Opening Type (Reversible Door, Single Side Opening ), By Product (Frost, Non-Frost), By Refrigerant ( HFC, HCFC), By Technology ( Inverter, Non-Inverter), By Volume (Below 50L, 51-100L, 101-150L, 151-200L, 201-250L, 251-300L, 301-400L, 401-500L, 501-600L, 601-750L, Above 750L), By Display Type (7 Segment, LCD), By Control Type (Electronic, Manual), By Application (Household, Commercial), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2021-2027’’ in detail along with the table of contents:
Rising popularity of LCD credited to improved data display and low power consumption
The LCD segment in the refrigerator market is anticipated to showcase 9% growth rate through 2027. LCD-equipped refrigerators are observing a high demand attributed to their low power consumption and improved data display as compared to the 7-segment display. The LCD display companies are investing in R&D activities for advanced display innovations to increase their industry revenue.
151L – 200L refrigerators are witnessing a high demand in the residential sector
151L to 200L segment accounted for 14% of the refrigerator market share in 2020. These appliances are available at all online & offline stores owing to their higher demand and low transportation charges. Market leaders, such as LG, Samsung, and Whirlpool, are enhancing product efficiency of these appliances by integrating advanced airflow systems, a power cool zone, and toughened glass shelves to boost sales.
Growing industry demand for smart refrigerators in North America region
North America refrigerator market is expected to register 7% growth rate through 2027 led by the increasing consumer demand for smart home technologies. Consumers across the U.S. and Canada are more aware about intelligent technologies, thus investing in smart consumer durables. Moreover, the implementation of government regulations for energy consumption by home appliances is supporting the acceptance of smart refrigerators. These appliances consume significantly less amount of electricity as compared to the traditional models, attributing to the North America industry progression.
Prominent companies functioning in the market include Panasonic Corporation, Whirlpool Corporation, Samsung Electronics, Liebherr Group, Haier Group Corporation, Siemens AG, Bosch Group, LG Electronics Inc., Midea Group, and Electrolux AB. Market players are emphasizing on investments in the expansion of their business operations in international markets to grow their revenues and industry share.