Consumer appliances are being reshaped by AI-driven innovation, modular ecosystems, HVAC expansion, rising Chinese brand influence and fast-growing niche categories. These trends reflect shifting consumer expectations, new service-led revenue models and emerging opportunities for brands to differentiate and capture long-term value.
Delivery
This report comes in PPT.
Key Findings
Market continues to grow, but at a slower pace compared to 2024
The unpredictability of Trump tariffs, high interest rates, inflation uncertainty and a global affordability crisis have led to a slow housing market. With fewer homes changing hands, the demand to purchase new appliances has also reduced. This has led to a reduction in global growth rate from 2.7% in 2024, to 1.4% in 2025.
Global South driving growth in major appliances
Eight out of the top 10 markets driving growth are from the Global South, with Poland and Spain exceptions. These markets are growing at a range of 3.2 to 15.2%, significantly above the global average of 1.4%. Growth regions include Eastern Europe, Africa, South Asia and Latin America.
AI is now the default for premium appliances
AI integration is now expected, not the exception. From ovens to fridges, brands such as Miele, Siemens and Samsung showcase appliances that autonomously adjust settings, recognise food types and optimise performance based on user behaviour.
Investment and focus on HVAC products and services
Appliance giants are rapidly investing in HVAC in 2025. Samsung’s EUR1.5 billion acquisition of FläktGroup pushes it into commercial and data-centre cooling, integrating HVAC with smart-building platforms. LG aims to become a top global HVAC provider by 2030, expanding through acquisitions. Both shift from consumer appliances towards large-scale, infrastructure solutions.
Continued focus on direct sales and subscription appliances
Appliance companies want to own their customer relationships. Many are focusing on selling directly to customers, through own retail stores and brand.com sites. This transition will also facilitate the move to servitisation. Subscription appliances have been very successful for LG, with growth rates over 20% for LG in South Korea and expansion into Southeast Asia in 2025.
Our expert’s view of Major Appliances in 2025
Key findings
Markets in the Global South continue to drive volume growth
Top five trends in Major Appliances
Top five trends uncovered
AI labelling has replaced smart as the default for premium appliances
AI positioning has become the default for leading brands
AI will be key to enable greater monetisation opportunities for appliance brands
AI ecosystems are unlocking truly seamless smart homes
Samsung’s Bespoke AI case study
AI ecosystems: Enabling seamless smart homes
Residential climate solutions continues to be a growth sector
LG: Scaling heat pump and commercial HVAC leadership
HVAC systems are an important pillar of an appliance brand’s growth strategy
Chinese brands are moving up the premiumisation ladder through events
Chinese brands have invested heavily at IFA over the years
Chinese brands’ investment at events is a sign of their continued value push
Unlocking growth through emerging appliance niches
Miele’s move into high-end outdoor appliances
Growth opportunities from emerging appliance niches
Future implications
Opportunities for growth
Consumer Appliances
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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