GCC Small Home Appliances Market Analysis
The GCC Small Home Appliances Market is expected to register a CAGR of less than 5% during the forecast period.
With the advent of Covid-19 in 2020 among GCC nations, UAE's GDP got extremely low(-3.5%). Followed by UAE comes Oman, Saudi Arabia, and Kuwait with GDPs of (-28%, -2.3%, -1.1%) which caused a decline in income. At the same time, there was an increase in demand for home appliances because of the increase in the population living inside the home due to restrictions. With it, there was also an increase in the price of raw materials, causing pressure on firms and the consumer. Washing machines, refrigerators, and room air-conditioners were projected to be the primary appliance categories within the smart appliances market during Covid-19.
Rising disposable income and low appliance possession rates are driving the demand for appliances in the GCC countries. Steady growth in hospitality and residential real estate markets with digitalization and economic recovery is expected to increase the demand for small home appliances.
Both residential and commercial areas use vacuum cleaners. The urge for cleanliness, technical advancements, and continuous innovations is pushing the market for vacuum cleaners in households in the GCC nations. Some of the reasons attributing to the growth of vacuum cleaners in the market include emerging online distribution channels and increased internet usage. In the GCC nations, cylinder vacuum cleaners are growing in popularity. Technological advancement and smart devices are anticipated to support market expansion. Across all groups, there is a move towards energy-efficient appliances.
In 2021 with the gradual opening of the economy Kuwait and UAE recovered fastly, with GDPs of (3.3% and 3.2%) respectively. The steady growth of hospitality and residential real estate markets, digitalization, and economic recovery in emerging markets are all important trends boosting demand for the purchase and trade of UAE consumer electronics. The rising number of visitors is also impacting the country's consumption of appliances. The consumption of smart home appliances is also altering due to changing lifestyles, which will further fuel market expansion. With more energy-efficient appliances being used, the increasing concerns about energy consumption are anticipated to impact the market.
GCC Small Home Appliances Market Trends
United Arab Emirates Leading Small Home Appliance
The UAE small home appliances market is poised to grow fastest in sales of small home appliances. The UAE's real estate market and ex-pat community is driving the GCC region's small home appliances market. The growing population and high-income earners led to the growth of premium appliances in the market. The growing number of tourists is also impacting the consumption of appliances in the country. The changing lifestyle is also impacting the consumption of smart home appliances, which will further add to the market's growth. The growing concerns over energy consumption are also expected to affect the market with more usage of energy-efficient appliances.
Rise in Demand of Vacuum Cleaners
Vacuum cleaners are used in both residential and commercial spaces. The urge for cleanliness, technological advancements, and continuous innovations is driving the market for vacuum cleaners in the households of the GCC countries. Emerging online distribution channels and increased internet use are some factors attributing to the growth of vacuum cleaners in the market. Cylinder vacuum cleaners are becoming more popular in the GCC countries. Smart devices and technological development are expected to support the market's growth in the projected period. There is a shift toward energy-efficient appliances across all categories.
GCC Small Home Appliances Industry Overview
The development of the market varies between countries across GCC. The e-commerce market is offering opportunities by increasing websites from hypermarkets in the UAE. Discounts and promotion strategies are opted for by retailers and manufacturers to retain their position in the market. Foreign manufacturers dominate the market, and there is scope for replacement sales. Major competition occurs through markets in Asia, America, and Europe with an already established market and making products at low cost.
GCC Small Home Appliances Market Leaders
Haier Electronics Group Co. Ltd.
Samsung Electronics
Electrolux AB
BSH Home Appliance
Hitachi
- *Disclaimer: Major Players sorted in no particular order
GCC Small Home Appliances Market News
- June 2022: TCL (Dubai) joined hands with retail giant Jashanmal to bring top-of-the-range home appliances to GCC. TCL is the global No.2 LCD brand and a pioneer in consumer electronics and home appliances. This partnership will enable TCL to reach a wide consumer base.
- January 2022: Hitachi, Ltd. and Hitachi Industrial Equipment Systems Co., Ltd announced that they were accelerating the global development of the line-building business leveraging industrial robots and will establish Hitachi Automation, Ltd on April 2022.
