The refrigerators market is anticipated to expand to a valuation of US$ 89.06 billion in 2023 and is predicted to exhibit a CAGR of 6.5% from 2023 to 2033 and reach US$ 167.17 billion in 2033.
Data Points
Key Statistics
Expected Market Value (2023)
US$ 89.06 billion
Anticipated Forecast Value (2033)
US$ 167.17 billion
Projected Growth Rate (2023 to 2033)
6.5% CAGR
Rising infrastructure projects for smart houses and structures for both residential and business use increase people's preference for energy-efficient home equipment products. This boosts the expansion of inventive refrigeration products. Furthermore, the adoption of cutting-edge advanced technologies including IoT, internet infrastructure, and custom interface with the cooling products by leading manufacturers would push the consumption of smart refrigeration products. For instance, in December 2019, Xiaomi released the Yunmi Internet Smart freezer, which includes high-end characteristics including IoT connectivity, AI voice commands, and so on.
Refrigerators are becoming more popular in homes for frequent kitchen usage. As a result, rising housing renovation is projected to boost freezer adoption. Based on the House of Commons Library's report titled 'Construction Statistics: Great Britain 2018,' housing made up the greatest sum for new purchases in 2018 at USD 23.76 billion, accounting for 35% of overall construction orders in the United Kingdom Moreover, freezers with rapid cooling capabilities are frequently used in hoteliers and quick-service eateries to prevent food contamination and to keep up an efficient food storage facility. As a result, rising tourism and hospitality popularity would boost the popularity of expensive refrigeration products.
Growing environmental and energy consumption concerns among government entities and the general public have led to greater demand for environmentally and minimal-energy-consuming refrigerators. Automakers have thus concentrated R&D and breakthroughs along these lines. Energy and eco-sensitive technical advancements have hence also influenced the market.
Based on the article ‘Accelerating the Global Adoption of Climate Friendly and Energy Efficient Refrigerators’, reported by United4Efficiency Institution, the government has announced an encouraging policy to offer compulsory Brazilian comparison labels which would aid to facilitate customers to determine on buying under the consideration of power efficiency of the refrigerator.
In recent decades, the Asia-Pacific regional sector has overtaken the refrigerators industry. This is in line with the region's growing economic characteristics, living standards, and infrastructure requirements. Other significant variables influencing Asia-Pacific sales growth involve strong substitute requirements for conventional to smart home appliances, a rise in disposable income, urban expansion, and the rise in households. China and India are Asia Pacific's biggest refrigeration product marketplaces.
The other major refrigerator sector of the market has been North America, next to Europe. These sections, nevertheless, distinguish from the Asia-Pacific section across several particular aspects and are more concentrated on innovations and technological advancements.
Europe is projected to expand more rapidly because of the widespread adoption of technically sophisticated refrigeration products by notable regional companies. This would entice and persuade people to buy smart refrigerators. For instance, in 2019, Samsung Electronics introduced lifestyle innovations of quality craftsmanship and BESPOKE to ful?ll the specific needs of each residence in Europe, ushering in a fresh period of kitchen design.
The Middle East, Africa, Latin America, and Oceania sections are lesser in absolute terms, yet significant given the total volume of the refrigerators market. They also persist essentially to producers since they are nearly completely import reliant.
The competitive market landscape is extremely diverse. This is because numerous big firms have gradually entered the market. For several years, the refrigerator market has been a hugely profitable one, and most huge electrical firms have wanted to join and grow their share of it.
Furthermore, manufacturers are striving to create spacious and personalized interiors, as well as the use of LED Lightbulbs for livelier lighting to preserve energy. This, in turn, is expected to drive growth in the refrigerator market.
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Refrigerators Market Overview
Refrigerators are widely used in residential and commercial markets to maintain a sustained low-temperature environment for food or other products like biological samples. Huge demand and positive drivers have led to substantial growth in the refrigerators market. However, several changes are expected in the market due to the Covid-19 crisis.
Refrigerators are used residentially in homes, as well as commercially in the healthcare sector, biomedical sciences sector, food processing and storage sector, transport sector, hospitality sector, retail sector, etc. The plethora of sectors and purposes for which refrigerators are used results in the need for several different types of refrigerators that can cater to specific requirements.
Refrigerators are hence usually classified on the basis of their volume and cooling capacities. Another method of classifying refrigerators is by the number of doors, namely single-door, double-door, three-door, and multi-door refrigerators. It may be further categorized by door types, such as top freezer, bottom freezer, French doors, or side-by-side doors.
Drivers of the Refrigerators Market
The key drivers for refrigerators in the residential segment include overall population growth, rapid urbanisation, increasing purchasing power, rising number of nuclear families and single person households, and a general desire for technological upgrades with respect to daily-use appliances in homes.
In the commercial segment, the food processing and storage industry is driving the refrigerators market as the demand for processed foods has increased rapidly. Similarly, the hospitality sector has also shown a substantial increase in demand for refrigerators, mainly led by fast-mushrooming bars, ice cream parlours and restaurants.
Easy availability of loans by individuals and companies for purchase of high-end refrigerators is also driving the market and reducing hesitance caused due to cost-sensitivity. However, this trend is likely to undergo changes in the post-Covid-19 scenario and private and public banks and lending companies are likely to practice different behaviours.
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Trends in the Refrigerators Market
Growing concerns over the environment and energy consumption by governments and the general population alike have led to an increased demand for eco-friendly and low-energy consuming refrigerators. Manufacturers have thus focussed R&D and innovations along these lines. Energy and eco-sensitive technological upgrades have hence also driven the market.
Correspondingly, technologies such as improved defrosting and insulation features, high-efficiency compressors, and use of materials such as glass (instead of plastic) and non-ozone depleting materials have also found traction in the refrigerators market.
Digitisation and automation are also ongoing trends in the refrigerators market.The focus on R&D and technology has also brought down prices while increasing features of refrigerators. This trend has created a dichotomy between competitive pricing and advancing features that manufacturers need to navigate on account of the fierce competitive landscape.
Impact of Covid-19
The residential segment of the refrigerators market will be affected due to reduced disposable incomes in the aftermath of the Covid-19 crisis and a corresponding focus on affordable and durable refrigerator purchases.
However, the commercial segment will be more acutely affected as several sectors that had hitherto shown high demand for refrigerators like the hospitality, retail and transport sectors are likely to be hard hit by the pandemic’s economic ramifications. At the same time, certain commercial segments like the healthcare and biomedical sectors may see a rise in demand for refrigerators. Manufacturers and vendors will thus be inclined to reorient their market strategies.
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Region-Wise Analysis
The Asia-Pacific regional segment has dominated the refrigerators market in recent years. This is commensurate with the region’s increasing economic profile, standard of living and demand for infrastructure. However, this region may also bear the brunt of Covid-19 pandemic’s economic fallout.
The North American region has been the other large refrigerators market segment, followed by Europe. However, these segments differ from the Asia-Pacific segment in several qualitative aspects and are more technology and innovation-driven.
The Middle-East, Africa, Latin America and Oceania segments are relatively smaller, but still huge in absolute terms given the cumulative size of the refrigerators market. They also remain important for manufacturers since they are almost entirely import dependent.
Competition Landscape
Though small and local players in the global refrigerators market have not been able to enjoy much of the market share due to the technological edge required in manufacturing refrigerators, the competition landscape is highly fragmented.
This is since several established companies have steadily forayed into the market.The refrigerators market has been a lucrative market since several decades and most of the large electrical companies have sought to enter and expand their market share.
Key players in the market include Samsung,
Haier
Electrolux
Sharp
Whirlpool
LG
Godrej
Intex
Voltas
Pansonic
Toshiba
TCL
Hitachi
BSH
Midea
Hisense
Arcelik
Xinfei
Daikin and Meiling.
Regions and Countries Analyzed in the Report
North America (the USA, Canada)
Latin America (Mexico, Brazil, Rest of LATAM)
Europe (Germany, the United Kingdom., France, Italy, Spain, Poland, Russia, Rest of Europe)
East Asia (China, Japan, South Korea)
South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
Oceania (Australia, New Zealand)
Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)
