Household Appliance Manufacturing Industry Profile

Companies in this industry manufacture small electric appliances as well as other major household appliances. Major companies include BSH Hausgeräte (Germany), Electrolux (Sweden), Haier Electronics and GE Appliances (both based in China), LG Electronics (South Korea), and Whirlpool (US).

The global household appliances market has been growing steadily over the years. In 2023, global sales in unites amounted to about 760 million units of major appliances, according to figures from Statista. The growth is driven by innovations in technology, replacement demand, and a growing middle class in emerging markets.

The US household appliance manufacturing industry consists of about 300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $23 billion.

COMPETITIVE LANDSCAPE

Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The US industry is highly concentrated: the top 50 companies generate over 95% of revenue.

Imports, primarily from China and Mexico, are a major source of competition for US household appliance manufacturers, accounting for about 70% of the US market. US exports of household appliances, which account for about 40% of production, go mainly to Canada and Mexico.