South Korea Home Appliances Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

A technology-driven country, South Korea, holds greater scope for the home appliances market. The majority of the existing technology innovations were first introduced in the South Korean market to match the dynamically changing consumer preferences. The electronics giants, like LG Electronics and Samsung, are retaining their global top positions by addressing these customer preferences in a timely manner. The market for major home appliances is greater than that of the small home appliances in this region. Technology up-gradation and the adoptability it holds for applications in every segment of the home appliance are making the market an evergreen one for manufacturers. Despite being a developed country with saturated market conditions, the South Korean home appliances market still holds the power to penetrate and grab a positive market share. This astronomical change that is being observed is due to the increased disposable incomes of people and the rapid urbanization trends that can be seen in different parts of the country. Large home appliances are still scoring a positive number when compared to small home appliances.

COVID-19 had a mixed impact on retail volume sales in the South Korean home appliances market in 2020, thus, significantly boosting the demand for coffee machines, coffee mills, and breadmakers. On the other hand, the pandemic may have a modest negative impact on the demand for light fryers and rice cookers.

Key Market Trends

Technology and Innovation in Products are Driving the Market

Innovation in product development and the adoption of the latest technology, such as the Internet of Things (IoT) and artificial intelligence (AI), are driving the market. Being the fourth-largest economy in Asia, South Korean manufacturers never step back to invest more in innovation. The market for major home appliances is exhibiting a positive trend despite its existing presence rate in the market, owing to the factors like innovation that the manufacturers are focusing on while establishing their products. Smart homes concept, increasing popularity for built-in appliances within the construction channel, and AI and IoT functionalities on appliances connected through the internet are key elements that the customers are looking forward to. Diminishing levels of water reserves across the world are shaping the market for washing machines with low water utilization. LG Electronics created an app named Home Chat, which can be considered as a classic example to understand consumer requirements. This app assists its users in monitoring all home appliances like washing machines, refrigerators, and even appliances like cookers, anywhere through their smartphones. This connectivity helps the consumer to connect their appliances and monitor them in a timely manner.

Small Kitchen Appliances Sales are Generating Higher Revenue for the Small Appliances Segment

Sales of small kitchen appliances are increasing, owing to the fact that they reduce the time spent on the regular household activity. Understanding this, a majority number of manufacturers are trying to address the market requirements by understanding customer interest with innovations that simplify their lifestyle. Next to the small kitchen appliances, air purifiers are forecasted to grab a major share in the coming years, owing to the country's diminishing air quality and rising concerns about health complaints related to respiratory. Thus, climatic changes are also making way for more air purifiers to penetrate the market.

Competitive Landscape

The report covers major international players operating in the South Korean home appliances market. Multinational brands, such as LG Electronics and Samsung Electronics, are performing quite well in their home countries. LG Electronics tops the market with its quite promising sales volume, followed by Samsung Electronics. Both the companies are competing across major appliances categories and some small appliances categories.

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• The market estimate (ME) sheet in Excel format
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