Low penetration rates for most major appliances, especially compared to the penetration rates in developed countries, are key to the growth in demand China. Growth will also come form the household formation rates in China and the large number of appliances put into use over the last 10 years, many of which will require replacement. Also impacting the growth will be rising personal income levels and growing urbanization. Freedonia said value growth will significantly outpace volume growth due to price increases.
Freedonia reports that, by 2010, China will overtake the U.S. as the world’s largest major household appliances market. China is already the world’s largest producer and exporter of these products.
China's appliances exports will slow compared to the fast pace seen in the 1995-2005 period, in part due to increasing competition in offshore markets from other low-cost producing nations as well as from new offshore facilities by some Chinese appliance OEMs. Still, shipments of appliances from Chinese manufacturers are expected to top 300 million in 2010, with nearly 55 percent exported.
Source: The Freedonia Group, Inc.