PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615213
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615213
Built-in kitchen appliances can be defined as the integration of cooking essentials directly into kitchen cabinetry, ensuring a seamless appearance and maximized space utilization. These appliances offer homeowners a modern, sleek look, blending seamlessly with contemporary interior design and elevating the aesthetic appeal of a kitchen. They've become synonymous with luxury, modernity, and convenience in today's rapidly urbanizing world. Built-In kitchen appliances market is estimated to grow at a CAGR of 7.4% from 2024 to 2032.
Built-In Kitchen Appliances Market Dynamics
Driver:
One of the primary drivers for the surge in demand for built-in kitchen appliances is the increasing emphasis on home aesthetics and the desire for a clutter-free space. The modern homeowner, equipped with a barrage of home decor inspirations from platforms like Pinterest and Instagram, seeks a kitchen that isn't just functional but also serves as a statement of style and luxury. A study in a popular home decor magazine indicated that over 60% of homeowners preferred built-in appliances due to their ability to offer a streamlined look, reducing visible clutter. This trend is particularly prevalent in urban apartments and condos, where space is at a premium, and optimizing every square foot becomes essential.
Opportunity:
However, the market isn't just driven by aesthetics alone; the rising middle class globally offers a significant opportunity. As disposable incomes grow, so does the capacity to invest in home improvements and luxury items. The Asian market, especially, is witnessing an upscale trend in home buying and renovations. A survey of homeowners in metropolitan cities like Mumbai and Shanghai showed that nearly 50% were looking to upgrade their kitchens within the next two years, with built-in appliances topping their list of desired features. This booming middle class, coupled with their increasing international exposure, makes them a ripe market for the expansion of built-in kitchen appliances.
Restraint:
On the flip side, a notable restraint is the relatively high initial investment required for these appliances. Built-in kitchen appliances tend to be on the pricier side compared to their stand-alone counterparts. A comparison between standalone and built-in oven prices in three major appliance stores showed an average price difference of about 30%. This substantial cost difference can be a deterrent for budget-conscious consumers or those who prioritize functionality over aesthetics.
Challenge:
Additionally, the challenge that manufacturers and retailers face is the perception of built-in appliances being difficult to service or replace. There's a common notion that if a built-in appliance malfunctions, the entire kitchen setup might need alterations. Anecdotal evidence from homeowner forums suggests concerns about being "locked in" to a particular appliance's dimensions, fearing that upgrades or replacements in the future might not fit the pre-existing space. This perception challenge, though not always rooted in reality, does impact consumer decision-making and can hinder market growth.
To conclude, the built-in kitchen appliances market is riding a wave of modern home design trends and the aspirations of a growing global middle class. While the benefits of aesthetics and space optimization are clear, manufacturers and retailers need to address the concerns related to cost and perceived inflexibility to fully unlock this market's potential. As kitchens continue to evolve from purely functional spaces to social and aesthetic focal points of homes, built-in appliances will undoubtedly play a pivotal role in shaping their future.
Product Insights
In the built-in kitchen appliances market, segmentation by product reveals diverse offerings catering to modern household needs. Among the range, Built-in Ovens & Microwaves saw the highest revenue in 2023. With urban dwellers opting for multi-functional appliances that offer convenience and save space, this trend was foreseeable. These appliances, particularly ovens, have become an integral part of kitchens, used for a variety of purposes from baking to grilling. However, Built-in Hobs have been showing the highest Compound Annual Growth Rate (CAGR). Their sleek design, coupled with the efficiency they bring in cooking with precise control over the flame, makes them increasingly popular, especially in regions like Europe and Asia-Pacific. Built-in Hoods are also gaining traction due to increasing awareness about maintaining kitchen air quality. Built-in Dishwashers, despite being a luxury for many households, are gradually becoming standard in urban homes given the convenience they offer. Built-in Refrigerators exude luxury, with their seamless integration creating a modern kitchen look. The 'Others' category, which includes specialty appliances like built-in coffee machines, saw moderate growth.
Application Insights
Segmenting by application, Residential use of built-in kitchen appliances generated the highest revenue in 2023. The rise in home renovations, especially in the backdrop of the global pandemic where people spent more time at home, fuelled this trend. The desire for modern, streamlined kitchens in residential spaces is evident. However, the Commercial segment, especially high-end restaurants and hotels, is expected to witness the highest CAGR from 2024 to 2032. As the hospitality industry is rebounding post-pandemic, there's a renewed emphasis on infrastructure upgrades to attract patrons, and the trend of open kitchens in restaurants further necessitates aesthetic built-in solutions.
Regional Insights
Geographically, Europe was the dominant region in terms of revenue in 2023. With countries like Italy, Germany, and France being home design capitals, the inclination towards stylish, integrated kitchen spaces is robust. Asia-Pacific, however, is projected to exhibit the highest CAGR from 2024 to 2032. The burgeoning middle class, combined with rapid urbanization in countries like India, China, and Indonesia, plays a significant role. Urban spaces in these regions, often compact, necessitate built-in appliances to maximize space.
Competitive Insights
From a competitive standpoint, the market is dominated by giants like BSH Hausgerate GmbH, Electrolux, Haier Group, Whirlpool Corporation, Panasonic Holdings Corporation, LG Electronics, Elica S.p.A., Samsung, Gorenje, Arcelik. In 2023, these companies emphasized product innovation tailored to regional needs and preferences. Their strategies also heavily banked on leveraging technology, with smart, connected appliances becoming a significant focus. With IoT integration, appliances can now be controlled via smartphones, making them more user-friendly. Moreover, mergers, acquisitions, and partnerships with tech firms have been a key strategic move, positioning them favorably in a competitive market. Over the forecast period from 2024 to 2032, emphasis on eco-friendly appliances and those aiding in energy conservation is expected to be a significant trend among market leaders. In summation, the built-in kitchen appliances market, riding on the wave of modernity and functionality, has witnessed significant growth. While Europe continues to be a substantial revenue contributor, Asia-Pacific is the region to watch out for in the coming decade. Key players, in their bid to maintain market dominance, are likely to focus extensively on technological integrations, ensuring that modern kitchens are not just about aesthetics but also about smart, sustainable living.
Historical & Forecast Period
This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Built-In Kitchen Appliances market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Built-In Kitchen Appliances market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.
Market Segmentation
Product
Application
Distribution Channel
Region Segment (2022-2032; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Built-In Kitchen Appliances market?
What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2032.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Built-In Kitchen Appliances market?
Which is the largest regional market for Built-In Kitchen Appliances market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Built-In Kitchen Appliances market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Built-In Kitchen Appliances market worldwide?
FIG. 10Market Positioning of Key Built-In Kitchen Appliances Market Players, 2023
FIG. 11Global Built-In Kitchen Appliances Market - Tier Analysis - Percentage of Revenues by Tier Level, 2023 Versus 2032