"Evolution of the Household Market: Key Statistics and Predictions for 2023 and Beyond (2024 Market Size: USD 315.6 billion)"!

Household Industry Overview

In 2023 and 2024, the domestic market has experienced significant trends and changes that a variety of socio-economic factors have influenced. The global household market size is USD 315.6 billion in 2024 and will be USD 455.7 billion by 2031, with a 4.7% growth rate. This growth is primarily due to the increasing adoption of smart home technologies, urbanization, and rising disposable incomes. The adoption of smart home devices is a noteworthy trend. The global smart home market size was USD 91 billion in 2023, with an annual growth rate of 25.3% through 2024. Smart speakers, security systems, and home automation devices are becoming more prevalent. In 2023, 69% of households in the United States reported possessing at least one smart home device, a significant increase from 57% in 2021. Consumer demand for convenience, energy efficiency, and improved security is the driving force behind this trend.

The transition to eco-friendly and sustainable products is another noteworthy trend. In 2023, 48% of consumers prioritized the purchase of eco-friendly household products, which represents a 10% increase from 2022. This encompasses furniture that is sustainably sourced, reusable culinary items, and biodegradable cleaning products. From 2023 to 2024, the global market for eco-friendly household products is expand at a compound annual growth rate (CAGR) of 8.5%. The domestic market has been substantially affected by e-commerce. Online sales of household commodities comprised 35% of the total market in 2023, a significant increase from 29% in 2021. E-commerce has become the preferable shopping method due to the convenience of online shopping, competitive pricing, and a diverse selection of product choices. The 2023 holiday season alone saw a 22% increase in domestic product sales on major e-commerce platforms.

Additionally, there was a substantial rise in the number of home renovation and enhancement activities. The United States spent USD 450 billion on home improvement initiatives in 2023, a 6.5% increase from the previous year. This trend is persisting into 2024 as a result of the increasing popularity of DIY initiatives and the aging housing stock. Furthermore, the pandemic-induced transition to remote work has prompted a significant number of individuals to allocate funds to the development of functional living spaces and home offices. Finally, the global furniture market demonstrated robust expansion. The market was valued at USD 550 billion in 2023 and will be USD 610 billion by the end of 2024. Urbanization, increasing consumer incomes, and the demand for furniture designs that are both space-saving and multifunctional are all contributing factors to this expansion.

Top Countries Contributing in Household Market

United States (2024 Market Size: USD 150 billion)

According to cognitive market research, the U.S. household market share is 18% of the total revenue generated and its market size was USD 140 billion in 2023, and will be USD 150 billion by the end of 2024. This growth rate is consistent and is driven by rising disposable incomes and consumer expenditure. Energy-efficient appliances primarily utilize the domestic market in the United States, the home improvement market, and the smart home technology market, which experienced a 28% adoption rate in 2023. In 2023, over 60% of households in the United States possess at least one smart home device. In 2023, there was a 20% increase in the sale of domestic goods online, and this trend will continue in 2024. This is the result of the convenience and extensive product selection that e-commerce platforms provide. In 2023, the expenditure on home renovations exceeded USD 450 billion and will continue to expand into 2024.

China (2024 Market Size: USD 130 billion)

The China's household market size was USD 120 billion in 2023, and will be USD 130 billion in 2024 as a result of urbanization and the increasing average income of the middle class. The energy-efficient appliances market and the smart home market are the primary users, with a 35% adoption rate in 2023. China holds a significant revenue share of 15% of the global household market. The increasing consumer preference for sustainability was evident in the 25% increase in sales of eco-friendly household products in 2023. The furniture market also experienced substantial growth, with a preference for multifunctional and space-saving designs. E-commerce continues to be a critical factor, with online sales comprising 40% of the household products market in 2023.

Japan (2024 Market Size: USD 75 billion)

As per cognitive market research, The Japan household market share is 9% and its market size was USD 70 billion in 2023, and will be USD 75 billion by 2024. Major consumers include energy-efficient appliances, smart home technologies, and the elderly care market. The aging population's demand for health surveillance and automation was reflected in the 40% adoption rate of smart home devices in 2023. Government incentives contributed to an 18% increase in the sales of energy-efficient appliances. Consumer preference for online purchasing drives further growth in 2024, as the e-commerce segment of household goods sales reached 30% in 2023.

Germany (2024 Market Size: USD 70 billion)

The Germany household market size was USD 65 billion in 2023 and will be 70 billion in 2024. The smart home market, energy-efficient appliances, and sustainable household products are among the primary users. Germany holds a 7% of the global domestic market. Driven by a focus on energy efficiency and security, 50% of households owned at least one smart home device in 2023. The robust consumer demand for sustainability was reflected in the 20% increase in sales of eco-friendly products. In 2023, the home improvement market experienced substantial growth, with a 10% increase in expenditure.

United Kingdom (2024 Market Size: USD 60 billion)

According to cognitive market research, the UK household market holds a revenue share of 6% of the total revenue generated and its market size was USD 55 billion in 2023 and will be USD 60 billion in 2024. Major users include energy-efficient appliances, smart home technologies, and home improvement. A 45% of households in 2023 reported possessing a smart home device, with an emphasis on energy efficiency and security. Government incentives contributed to a 15% increase in the sales of energy-efficient appliances. In 2023, the e-commerce market for household products constituted 35% of the total sales and will expand in 2024.

France (2024 Market Size: USD 55 billion)

The household market in France was valued at USD 50 billion in 2023 and will be USD 55 billion by 2024. Smart home technologies, energy-efficient appliances, and sustainable household products are among the primary users. France holds 5% of the global domestic market. In 2023, the adoption of smart home devices reached 38%, with a particular emphasis on security and convenience. Consumer demand for sustainability was reflected in an 18% increase in the sales of eco-friendly household products. In 2023, the home improvement market experienced a 7% increase in spending, which was primarily driven by DIY initiatives and renovations.

Canada (2024 Market Size: USD 50 billion)

The Canada household market size was USD 45 billion in 2023, and will be USD 50 billion by 2024. Major users include energy-efficient appliances, smart home technologies, and home improvement. Cannda holds a 4.5% of the global domestic market. Driven by a focus on security and convenience, 50% of households reported possessing a smart home device in 2023. Thanks to government incentives, the sale of energy-efficient appliances increased by 12%. In 2023, the e-commerce market for household products constituted 30% of the total sales and will expand in 2024.

Italy (2024 Market Size: USD 45 billion)

The Italy household market share is 4% of the total revenue generated and its market size was USD 40 billion in 2023 and will be USD 45 billion by 2024. Smart home technologies, energy-efficient appliances, and sustainable household products are among the primary users. Driven by a focus on energy efficiency and security, 35% of households owned a smart home device in 2023. Consumer demand for sustainability was reflected in a 15% increase in the sales of eco-friendly household products. In 2023, the home improvement market experienced a 5% increase in spending, which was primarily driven by DIY initiatives and renovations.

South Korea (2024 Market Size: USD 42 billion)

According to cognitive market research, The South Korea market size was USD 38 billion in 2023 and will be USD 42 billion in 2024. Major users include energy-efficient appliances, smart home technologies, and home improvement. South Korea holds a 3.8% of the global household market. Driven by a focus on security and convenience, 55% of households reported possessing a smart home device in 2023. Government incentives contributed to a 17% increase in the sales of energy-efficient appliances. In 2023, the e-commerce market for household products constituted 40% of the total sales and will expand in 2024.

Australia (2024 Market Size: USD 40 billion)

In 2023, the household market in Australia was valued at USD 35 billion, and will increase to USD 40 billion by 2024. Major users include energy-efficient appliances, smart home technologies, and home improvement. Australia holds a 3.5% of the global domestic market. Driven by a focus on security and convenience, 48% of households reported possessing a smart home device in 2023. Government incentives contributed to a 14% increase in the sales of energy-efficient appliances. In 2023, the e-commerce market for household products constituted 33% of the total sales and will expand in 2024.

PESTEL Analysis of Household Market

Political

The household market is substantially influenced by the political landscape, which affects regulatory frameworks, trade policies, and government incentives. In 2023 and 2024, a variety of governments have maintained their commitment to the implementation of rigorous regulations that address energy efficiency, environmental standards, and product safety. For example, the Ecodesign Directive of the European Union requires household appliances to meet specific energy performance criteria, which is a motivating factor for manufacturers to develop more efficient products and innovate. In the United States, the Department of Energy (DOE) enforces standards that residential appliances must comply with, thereby encouraging the production and use of energy-efficient appliances. The function of trade policies is also essential. The cost and availability of household goods have been impacted by political tensions, such as the U.S.-China trade conflict, which have resulted in tariffs and trade barriers. Supply chains, pricing, and, ultimately, consumer access to domestic products can be influenced by these trade dynamics. Furthermore, uninterrupted production and supply necessitate political stability in critical manufacturing centers such as China, India, and Southeast Asia. 

Economical

The household market's performance is significantly influenced by the economic environment, which affects consumer expenditure, investment levels, and overall market growth. Post-pandemic, the global economy has demonstrated a mixed recovery in 2023 and 2024, with variable effects on various regions. The demand for household goods is directly influenced by key economic indicators, including GDP growth, inflation rates, and employment levels, which in turn impact consumer purchasing power and confidence. The increase in disposable incomes in numerous regions of the globe has stimulated consumer spending on household products. For instance, the United States experienced a substantial increase in disposable personal income, which resulted in increased expenditures on home appliances, smart home devices, and renovation projects. In the same vein, the demand for household goods has been driven by the expanding middle-class populations in emerging markets such as China and India, which have a corresponding increase in purchasing power. Nevertheless, inflation presents a challenge. The prices of household products have increased as a result of the increased costs of basic materials, transportation, and labor. Manufacturers are compelled to either internalize these costs, which may result in a decrease in their profit margins, or pass them on to consumers, which could potentially reduce demand.

Social

The household market is substantially impacted by social factors, which include cultural trends, demographic shifts, and consumer behaviors. The demand and development of domestic products have been significantly influenced by a number of significant social trends in 2023 and 2024. The senior population in numerous developed countries is a significant factor. The demand for age-friendly household products, including easy-to-use appliances and smart home devices that improve safety and convenience, is on the rise due to the expanding number of elderly individuals. For instance, Japan, which has one of the highest percentages of elderly citizens, has experienced a significant increase in demand for home automation products that facilitate health monitoring and daily activities. Another critical trend is urbanization. The demand for compact household products and space-saving has increased as more individuals relocate to urban areas. Urban residents who reside in smaller quarters are particularly fond of multifunctional furniture, integrated smart home systems, and compact kitchen appliances. This trend is particularly apparent in countries that are swiftly urbanizing, such as China and India, where urban populations are driving the household market.

Technological

The household market is being transformed as a result of technological advancements. The development, manufacturing, and adoption of household products have been substantially influenced by a number of technological trends in 2023 and 2024. This transformation is being spearheaded by smart home technology. The integration of Internet of Things (IoT) devices has transformed household products, enhancing their automation and interconnectedness. The global smart home market was valued at USD 91 billion in 2023, and it will experience a 25.3% annual growth rate through 2024. Advancements in artificial intelligence (AI) and machine learning have enabled smart appliances, including refrigerators and lighting systems, to provide improved security, energy efficiency, and convenience. Another critical area in which technology has made significant progress is energy efficiency. The development of highly efficient appliances that consume less energy and reduce environmental impact has been facilitated by advancements in materials science and engineering. For example, the most recent washing machines and refrigerators employ sophisticated sensors and algorithms to optimize energy and water consumption in accordance with the growing demand for sustainable products and stricter regulatory standards.

Environmental

The household market is being increasingly influenced by environmental factors, which are being driven by the increasing awareness and regulatory pressure to adopt sustainable practices. In the household market, the emphasis on environmental sustainability has had an impact on both consumer behavior and corporate strategies in 2023 and 2024. The central theme continues to be energy efficiency. The implementation of more stringent energy regulations for household appliances by governments worldwide has prompted manufacturers to develop and manufacture more energy-efficient products. For instance, the European Union's Ecodesign Directive and the U.S. Energy Star program establish rigorous energy performance standards, which in turn encourage the market to adopt more environmentally friendly alternatives. Consumer demand for products that reduce energy consumption and lower utility expenditures was reflected in a 15% increase in sales of energy-efficient appliances in 2023. The household market is also being affected by the proliferation of renewable energy sources. Residential settings are increasingly incorporating solar panels, wind energy, and home battery storage systems. These technologies allow households to produce and store their energy, thereby reducing their dependence on conventional power infrastructures and reducing their carbon footprint. The increasing adoption of renewable energy solutions is underscored by the 20% increase in residential solar panel installations in 2023.

Legal

The household market is significantly influenced by legal factors, which affect industry practices, consumer protection, and product standards. Numerous legal frameworks and regulations have continued to influence the development, marketing, and sale of domestic products in 2023 and 2024. Quality standards and product safety are of the utmost importance. In order to guarantee the safety of residential appliances and products for consumer use, governments and regulatory bodies implement rigorous standards. For example, the European Committee for Standardization (CEN) and the U.S. Consumer Product Safety Commission (CPSC) require household goods to undergo rigorous testing and certification procedures. These regulations not only safeguard consumers but also encourage manufacturers to uphold high-quality standards. The influence of environmental regulations is on the rise. The use of hazardous chemicals in household products is restricted by legal mandates such as the EU's Restriction of Hazardous Substances (RoHS) directive and the U.S. Toxic Substances Control Act (TSCA). The adoption of safer materials and production processes by manufacturers is a prerequisite for compliance with these regulations, which in turn promotes innovation in the development of eco-friendly products.

Key Players of Household Market

Whirlpool Corporation

In 2023, Whirlpool Corporation, a prominent participant in the household market, reported revenues of USD 21.7 billion and will generate revenues of USD 22.5 billion by the end of 2024. North America, Europe, Latin America, Asia, and the Middle East and Africa (EMEA) comprise the organization's principal business segments. The household market comprises a substantial portion of its business, with an emphasis on home appliances, including dishwashers, ovens, washing machines, and refrigerators. Whirlpool's research and development initiatives in 2023 were robust, with an investment of USD 700 million directed toward the development of energy-efficient and intelligent appliances. This investment will experience a minor increase in 2024 in order to foster innovation in the space of connected homes. Whirlpool holds 8% of the global residential appliance market. This is indicative of its robust brand portfolio, which encompasses household names such as Amana, Maytag, and KitchenAid, as well as its extensive global presence.

Samsung Electronics

In 2023, Samsung Electronics, which is distinguished by its extensive product line, generated revenues of USD 233 billion. The consumer electronics division, which encompasses domestic appliances, accounted for a substantial portion of this revenue. In 2024, the revenue generated by Samgsung Electronics is USD 245 billion. Samsung's primary business segments are IT & Mobile Communications, Device Solutions, and Consumer Electronics. The household market is classified under the latter. This segment encompasses a variety of household appliances, including refrigerators, laundry machines, and air conditioners. In 2023, Samsung's R&D expenditure is substantial, with more than USD 16 billion allocated across multiple divisions. A portion of this allocation is allocated to the development of energy-efficient products and smart home technologies. Samsung holds 9% of the global residential appliance market. Samsung's SmartThings platform is notably indispensable in the realm of smart home technologies, where its market leadership is fueled by innovation.

LG Electronics

In 2023, LG Electronics, another significant actor in the household market, reported revenues of USD 74 billion and will increase to USD 78 billion in 2024. Home Appliance & Air Solution, Home Entertainment, Mobile Communications, and Vehicle Component Solutions are among the segments into which LG's business is divided. The Home Appliance & Air Solution segment is the primary provider of products to the household market. This segment encompasses a variety of products, including vacuum cleaners, air conditioners, washing machines, and refrigerators. In 2023, LG allocated USD 4.7 billion to research and development, with an emphasis on sustainable technologies and smart home innovations. LG holds a 7% of the global residential appliance market. The organization is recognized for its innovative, high-quality products that incorporate cutting-edge technologies, including AI and IoT. LG's ThinQ platform optimizes the functionality and connectivity of its appliances, thereby satisfying the expanding market for smart home solutions.

Haier Group

In 2023, Haier Group, a Chinese multinational corporation, reported revenues of USD 46 billion, and will increase to USD 49 billion by 2024. Haier's business segments consist of Industrial Internet, Ecosystem Brands, and Smart Home (household appliances). The Smart Home segment is the most extensive, covering a diverse array of household appliances, including refrigerators, laundry machines, air conditioners, and kitchen appliances. In 2023, Haier allocated USD 2.2 billion to research and development, with an emphasis on the advancement of energy-efficient products and smart home technologies. Haier holds 6% of the global residential appliance market. The company's innovative smart home ecosystem, which seamlessly incorporates appliances with IoT to provide intelligent home solutions, is its greatest asset. Haier's substantial market share is substantiated by its extensive global reach, which includes robust market positions in Asia, Europe, and North America.

Bosch (BSH Home Appliances)

In 2023, Bosch, which operates under the name BSH Home Appliances, reported revenues of USD 16 billion and will generate USD 17 billion by 2024. The domestic market encompasses BSH's business segments, which include cooking, dishwashing, laundry care, refrigeration, and small appliances. In 2023, BSH USD 700 million to research and development, with an emphasis on the improvement of energy efficiency and the development of smart, connected appliances. Bosch holds 5% share of the global household appliance market. The company's market share is influenced by its reputation for innovation, durability, and quality. Bosch's Home Connect platform facilitates the seamless integration of appliances into smart home ecosystems, thereby improving energy management and user convenience.

Recent developments in Household Market

• In September 2023, Huawei Technologies Co., Ltd. introduced smart infrastructure solutions, including the AI Computing DCN Switch Series CloudEngine XH and Intelligent DC OptiX, an ultra-broadband solution, to assist enterprises in digitizing their business operations. (Source- https://www.huawei.com/en/news/2023/9/intelligentfor-ictservices)

Conclusion

In 2023, the domestic market exhibited remarkable growth and evolution, and it is expected to maintain this trajectory into 2024. The global household market size is USD 315.6 billion in 2024 and will be USD 455.7 billion by 2031, with a CAGR of 4.7%. This development is being driven by the growing demand for sustainable household products, energy-efficient appliances, and smart home technologies among consumers. The household market has become significantly reliant on smart home devices. The global smart home market was valued at USD 91 billion in 2023, and it will experience an annual growth rate of 25.3% through 2024. A substantial increase from previous years was observed in the ownership of at least one smart home device by 69% of U.S. households. Advancements in AI and IoT are accelerate further the adoption of these technologies, which improve energy efficiency and convenience.

Energy-efficient appliances also experienced a substantial increase in sales, with a 15% increase in 2023 compared to 2022. In 2024, the U.S. market for these appliances is USD 21 billion, with a compound annual growth rate (CAGR) of 6.2%. Similarly, eco-friendly domestic products have experienced significant growth, with 48% of consumers prioritizing such as purchases in 2023, a 10% increase from 2022. In 2023, online sales represented 35% of the total market, a significant increase from 29% in 2021, and the residential market has been significantly affected by the e-commerce market. The convenience and variety provided by online purchasing platforms perpetuate this trend. In the United States, home improvement expenditure experienced substantial growth, reaching USD 450 billion in 2023, with an increase in 2024.