Household Refrigerators And Freezers Market Size, Share & Trends Analysis Report By Capacity (15-30 cu. Ft., Less Than 15 cu. Ft.), By Structure (Built-in, Freestanding), By Door Type (Single, Double), And Segment Forecasts, 2021 - 2028

Report Overview

The global household refrigerators and freezers market size was valued at USD 81.90 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. Increasing consumer preference for smart equipment in an attempt to simplify daily food storage tasks is the primary factor responsible for the promising growth prospects of the market over the forecast period. Furthermore, factors, such as the increasing purchasing power of consumers, rise in the number of nuclear families, growing popularity of modular kitchen spaces, and changing dietary preferences, are driving the market. Refrigerators mounted with freezers are equipped with heat pumps and thermally insulated compartments built to keep food and beverage items cool and fresh for a comparatively long time.

Owing to these benefits, the appliance has become an everyday necessity across households globally. The intense competition in the market has pushed manufacturers to introduce improvements in their offerings to keep consumers intrigued and encourage them to replace their traditional household refrigeration equipment with modern appliances. The groundbreaking rise in demand for refrigeration technology in the 1950s stimulated developments, such as the inclusion of the automatic defrost feature and increased freezer sizes. Since then, subsequent technology and design advancements have substituted conventional units, thereby creating continual opportunities for the market.

Continual upgrades have ensured an increase in energy consumption and the electricity costs associated with the operations of conventional equipment. The regulatory bodies worldwide are formulating regulations that focus on lowering the energy consumption and Greenhouse Gases (GHG) emissions of refrigerators & freezers to lower their impact on the environment. The European Commission (EC) mandates that the manufacturers based in the region ensure that their products carry the suitable energy rating label. In 2021, a new regulation has been introduced by the EC, the Eco design requirements of refrigerating appliances (EU) 2019/2019 regulation, which intends to support the circular economy by emphasizing refrigeration product repairability, easy disassembly, and recyclability.

Product innovation has been playing a constructive role in fueling the market growth over the past few years. Present-day household equipment combines design aesthetics, energy efficiency, and temperature moderation to prevent food from spoiling. Modifications in compressor technologies and improved insulation have also helped drive the demand for state-of-the-art refrigeration equipment. Furthermore, innovations are allowing manual adjustment of the refrigerator’s temperature as the various items require distinctive thermal conditions and humidity scales to increase their shelf life.

The outbreak of the novel coronavirus at the beginning of 2020 changed the fundamental dynamics of the market. Temporary production halts in the manufacturing industry and the slowdown of the logistics sector resulted in a decline in product sales during the initial months of 2020. However, the enforcement of stay-at-home norms, in an attempt to reduce the communal spread of the virus created opportunities for business growth. Relaxations introduced in lockdown regulations by several governments worldwide during the last few months of 2020 scaled back the production of refrigerators and freezers. In addition, the resumption of shipping operations and the e-commerce websites allowed for a steady increase in sales of these appliances. With the majority of consumers using these appliances at a comparatively higher rate due to the extended work-from-home policies, the demand for these products is expected to rise at a promising pace in the near future. The trend is projected to help manufacturers recover from the losses incurred during the initial months of 2020.

Door Type Insights

The double door segment accounted for the highest revenue share of more than 67% in 2020 due to the high demand for products with several shelves, door bins, and adjustable freshness and temperature control features for the freezing compartment. The automatic frost-free cooling technology, one of the essential attributes of double door designs, also works in favor of the segment. Moreover, double door refrigerators offer more storage space with the systematic partition of compartments according to food and beverage items, making them more convenient and efficient.

The double door segment is further divided into top-mounted freezers, side by side, and French door. Among these, the French door segment is expected to witness the fastest growth during the forecast period. French door designs have separate spaces to store groceries, beverages, and other food items, and have freezers placed at the bottom, which offer extra shelf space and wide door bins as compared to any other refrigerators. This refrigeration equipment can assist in conserving energy as they allow easy access to smaller compartments while the others are closed.

Structure Insights

The freestanding segment led the global market in 2020 accounting for a revenue share of more than 58%. Freestanding refrigerators, commonly called standalone equipment, are the most common variety of equipment. Since their inception, the products have witnessed several changes and enhancements in terms of design and ergonomic features. These appliances can be relocated quickly, which helps resolve the complexity of maintenance, repair, and operations. Furthermore, the availability of various types of standalone refrigeration equipment in the market, ranging from the right and left hinge options to French doors to considerable depth to store items, ensures segment growth.

The built-in structure segment is anticipated to register the fastest CAGR of over 5.0% from 2021 to 2028. The rising trend of modular kitchen spaces is projected to supplement the growth of the segment. Built-in appliances are gaining traction as they help the user achieve upscale front panels that match other elements of a high-end kitchen. Furthermore, built-in refrigerators and freezers facilitate better movement in the kitchen as they require lesser space. However, built-in appliances are highly expensive, ranging from USD 5,000 to USD 10,000, while freestanding household refrigeration equipment usually costs between USD 1,000 to USD 3,000.

Capacity Insights

The 15 to 30 cu. Ft. segment accounted for the highest revenue share of over 47.0% in 2020. Storage capacity is one of the primary factors considered when purchasing household refrigerators & freezers. The majority of the households worldwide require 4 to 6 cu. Ft. of storage space per adult. As the average family consists of three to four people, due to the rising global trend of a nuclear family, refrigerators with built-in freezers at mid-capacity ranges are being preferred for home use.

Refrigerators offering a usable capacity of more than 30 cu. Ft. are also expected to witness substantial growth over the forecast period. However, higher usable capacity is often linked with more energy consumption patterns, which has a direct impact on electricity bills. To prevent this, manufacturers are incorporating energy-efficiency features with larger capacities. For instance, most high-capacity refrigeration equipment features automatic energy-saving systems giving options to the consumers for switching off compressors when non-functional.

Regional Insights

Asia Pacific accounted for the highest revenue share of over 35.0% in 2020 and is expected to retain its dominance over the forecast period. The region is a manufacturing hub featuring the presence of the headquarters of numerous leading market participants, such as Panasonic Corp., LG Electronics, Samsung, and Haier Group. In addition, rapid urbanization and government initiatives for the electrification of rural areas in developing countries, such as India, Nepal, Indonesia, the Philippines, and Bangladesh, will support the regional market growth.

Led by the U.S., North America also accounted for a considerable share in the market in 2020 due to the early proliferation of advanced appliances in the region. The rising usage of smart home automation products in the region is boosting the demand for high-end appliances. Other factors contributing to the region’s growth include the presence of a more extensive urban population base and the growing number of nuclear families.

Key Companies & Market Share Insights

The market is witnessing exponential growth worldwide with numerous domestic and international companies operating globally. However, established players have a stronghold on the market owing to brand image, diverse product portfolios, and constant focus on innovations. Leading vendors also spend more on R&D activities to introduce modernized systems that can help them attain a competitive edge in the market. Some of these state-of-the-art features are digital temperature control to regularize optimal temperature, AI sensors to lower energy consumption, Internet of Things (IoT) connectivity to remotely monitor refrigerator temperature, and touch display panels. These customer-centric solutions add multiple benefits, such as simplifying daily tasks and keeping food items fresh for a longer time.

Key players are closely analyzing the global market for collaboration opportunities to expand their businesses. Some key players are focusing on collaborations with technology providers to strengthen their product portfolio. For instance, in 2017, Liebherr collaborated with Smarter, a connected home start-up company based in London, U.K. Under this collaboration, Liebherr’s product line was equipped with Smarter’s wireless FridgeCam device that enabled consumers to remotely view inside food items from their smartphones and tablets. Some of the leading players in the global household refrigerators and freezers market are:

• AB Electrolux

• Dover Corporation

• LG Electronics

• Whirlpool Corporation

• Samsung

• Robert Bosch GmbH

Household Refrigerators And Freezers Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global household refrigerators and freezers market report on the basis of door type, structure, capacity, and region:

• Door Type Outlook (Revenue, USD Billion, 2016 - 2028)

  • Single Door

  • Double Door

    • Top Mounted Freezer

    • Side by Side

    • French Door

• Structure Outlook (Revenue, USD Billion, 2016 - 2028)

  • Built-in

  • Freestanding

• Capacity Outlook (Revenue, USD Billion, 2016 - 2028)

  • Less than 15 cu. Ft.

  • 15 to 30 cu. Ft.

  • More than 30 cu. Ft.

• Region Outlook (Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa