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Global Home Appliance Market Overview

Home appliances include: (i) 'white goods', such as air conditioners, washing machines, and refrigerators; (ii) kitchen appliances and other household items, including dishwashers, water heaters, range hoods, stoves, electric fans, and electric kettles.

According to the Frost & Sullivan report, the global home appliance market is huge, with sales reaching RMB 3755.7 billion and a volume of 30.665 million units in 2023. It is expected that sales will reach RMB 4423.7 billion by 2027, with a CAGR of 4.2% from 2023 to 2027, and a volume of 32.798 million units in 2027. In terms of sales, the Chinese mainland, North America, and Europe are the three largest markets for home appliances globally, accounting for more than 67% of the global total sales in 2023. The CAGRs from 2023 to 2027 are expected to be 5.2%, 2.1%, and 1.4%, respectively. Among them, China has the highest sales volume of home appliances globally. In 2023, the sales volume of the Chinese mainland market was RMB 854.4 billion, with a volume of 7.465 million units, accounting for 22.7% and 24.3% of the global market, respectively. Looking ahead, the global market, especially emerging markets, is expected to see an increase in disposable income levels and urbanization rates, which is expected to further drive growth in the global home appliance market.

According to the Frost & Sullivan report, from 2017 to 2023, the global household air-conditioning market showed an overall growth trend with a CAGR of 4.1%. It is expected that from 2023 to 2027, the growth rate will accelerate to 4.7%, driven by the high-endization and increasing penetration of household air-conditioning. Especially in emerging markets, the growth rate during the period from 2017 to 2023 was generally faster, and it is anticipated that this trend will continue in the near future. The Chinese mainland is the world's largest household air-conditioning market, accounting for 40.6% of the global market in 2023. It is expected that from 2023 to 2027, sales will grow at a CAGR of 4.7%, reaching RMB 425.6 billion by 2027, accounting for 40.5% of the global market.

According to a Frost & Sullivan report, from 2017 to 2023, the global washing machine (including washing machines, dryers, and washing-drying combination machines) and refrigerator markets maintained stable growth, mainly driven by disposable income globally, especially in emerging markets, and urbanization. Consumers' increasing health awareness and demand for high-quality washing machines and refrigerators that contribute to healthy lifestyles also drove the growth of these markets. Looking ahead, from 2023 to 2027, the total sales of the global washing machine and refrigerator markets are expected to grow at a compound annual growth rate (CAGR) of 3.8%. Among them, emerging markets such as South America, Southeast Asia, and the Middle East and North Africa are expected to grow at a faster rate than the global average.

According to a Frost & Sullivan report, from 2017 to 2023, driven by the increase in disposable income and urbanization rates globally, especially in emerging markets, consumer demand for products has become increasingly diversified, with continuous improvement in penetration rates of kitchen appliances and other household electronics. It is also expected that the growth rate will continue to accelerate in the future.

Competitive landscape of the global home appliance market

The home appliance market where the company operates is highly competitive. According to a Frost & Sullivan report, the company's main competitors include Chinese and multinational electronics companies as well as local and specialty brands. The global home appliance market is relatively fragmented, with the top five market participants accounting for about 20.8% of the total market share by sales volume. In 2023, there were more than 60,000 market participants in the global home appliance market. In 2023, among global home appliance companies, the company ranked first in revenue, with a market share of 7.9% by sales volume.

Key market drivers of the global home appliance market

1. Population growth and improved living standards:

With the continuous increase in global population, urbanization process, consumer purchasing power, and living standards, the penetration rate of household appliances has been rising steadily, further driving the growth of the global household appliance market. According to United Nations data, it is estimated that the global urban population will grow at a compound annual growth rate (CAGR) of 1.6% from 2023 to 2027. The growing population (especially in emerging economies) has driven greater demand for household appliances.

2. Strong demand for new products in Mainland China:

Due to the continuous rise in energy costs, consumers prefer to purchase household appliances that help them save on water and electricity bills and reduce adverse environmental impacts. At the same time, with technological progress, more intelligent and interconnected smart home appliances have emerged, especially prominently in the Chinese mainland. The growing demand for energy-saving and smart products has driven the sales of household appliances with energy-saving technology and intelligent functions, thereby promoting the overall growth of the household appliance market.

3. Demand for energy-saving and intelligent products:

Due to the continuous rise in energy costs, consumers prefer to purchase household appliances that help them save on water and electricity bills and reduce their negative impact on the environment. At the same time, with technological progress, more intelligent and interconnected smart home appliances have emerged, especially significantly in the Chinese mainland. The growing demand for energy-saving and smart products has driven the sales of household appliances with energy-saving technology and intelligent functions, thereby promoting the overall growth of the household appliance market.

Global Intelligent Building Technology Market Overview

Intelligent building technology refers to technical solutions that help buildings optimize energy efficiency, improve occupant comfort, and enhance safety, integrating hardware and software such as commercial air conditioning, elevators, building control software, and intelligent fire safety and security systems.

According to a Frost & Sullivan report, the global smart building technology industry achieved significant revenue growth from 2017 to 2023, increasing from RMB 1,101 billion in 2017 to RMB 1,854 billion in 2023, with a CAGR of 9.1%. With the continuous urbanization and further development of building technology supported by digitization and intelligence, it is expected that the smart building technology market will grow strongly at a CAGR of 7.2% between 2023 and 2027, reaching RMB 2,453 billion in 2027. In terms of revenue, commercial air conditioners accounted for 19.5% of the global smart building technology market in 2023. Commercial air conditioners can regulate temperature, humidity, and air quality to maintain a comfortable indoor environment, playing an important role in the smart building technology market and bringing multiple major benefits, including improving indoor air quality, creating a comfortable indoor environment, and enhancing building energy efficiency.

Competitive landscape of intelligent building technology market

The intelligent building technology market in Mainland China is relatively fragmented. According to a Frost & Sullivan report, the top five participants account for about 17.8% of the total market share. In 2023, the number of market participants in the intelligent building technology market in Mainland China exceeded 50,000. In 2023, the company ranked fifth in Mainland China with a market share of 2.7% for its revenue from intelligent building technology. In terms of commercial air conditioning, based on revenue in 2023, the company ranked first in Mainland China with a market share of 14.3%; it ranked fifth globally with a market share of 6.6%.

Key market drivers of the global smart building technology market

1. Global decarbonization trend:

Industrial parks, offices, and other buildings are major sources of carbon emissions, thus driving the development of smart building technology as a global decarbonization trend progresses. Smart building technology integrates hardware and software, playing an important role in improving energy efficiency, reducing carbon emissions, and lowering building energy costs, helping to achieve decarbonization goals. Against this backdrop, the certification of Leadership in Energy and Environmental Design (LEED) in the Chinese mainland (one of the most widely used green building rating systems globally) has increased significantly. As of December 31, 2023, a total of 7,119 projects had been certified by the US Green Building Council. This number represents a 55.6% increase compared to 2022, highlighting the strong demand for smart building solutions in the Chinese mainland.

2. Digital Urban Development:

The growth of the smart building technology market is also driven by the development of digital cities in Mainland China and around the world. With the support of smart building technologies such as building control systems, the development of digital cities in Mainland China has promoted the transformation of buildings into digital management ecosystems.

3. Continuous urbanization:

Urbanization is also a major driver of the intelligent building technology market. According to a Frost & Sullivan report, it is expected that the urbanization rate in mainland China will increase from 66.2% in 2023 to 69.8% by 2027. As more urban residents have higher demands for air quality, energy efficiency, safety, and convenience in their living environment, the continuous increase in the urbanization rate is driving the demand for intelligent building technology.

Replacement and upgrade: As buildings age, elevators, air conditioners, and other equipment within them also deteriorate, leading to the need to replace or upgrade existing buildings to meet modern energy efficiency, sustainability, and safety standards. In addition, building control software is required to achieve faster and more effective management of buildings and their equipment. This has further driven the development of the smart building technology market.

Global Industrial Robot Market Overview

Industrial robots are commonly used to automate manufacturing, logistics, and other processes. In recent years, the industrial robotics industry has experienced significant technological progress. The integration of AI, machine learning, and advanced sensor technologies has enabled industrial robots to perform complex tasks with higher precision and stronger applicability.

According to a Frost & Sullivan report, the revenue of the global industrial robot market increased from RMB 110.2 billion in 2017 to RMB 142.1 billion in 2023, with a CAGR of 4.3%. It is expected to grow further at a CAGR of 7.9% from 2023 to 2027, reaching RMB 192.5 billion by 2027. Industrial robot technology is generally used in industries such as electrical/electronics, automotive/electric vehicles, metals and machinery, plastics and chemicals, food, etc. The three major application areas of industrial robots are electrical/electronics, automotive/electric vehicles, and metal machinery, which together accounted for 62.6% of the total market in 2023. Among them, the automotive/electric vehicle application is expected to grow rapidly and become the largest application area of industrial robots by 2024.

Driven by various factors such as rising labor costs, continuous progress in robotics technology, and expanding manufacturing activities, the industrial robot market in mainland China has grown significantly. The automotive/electric vehicle, electrical/electronics, and metal and machinery manufacturing sectors in mainland China have particularly high demand for industrial robots. According to a Frost & Sullivan report, in 2023, the revenue of the industrial robot market in mainland China was RMB 675 billion, and it is expected to grow at a CAGR of 10.5% from 2023 to 2027, reaching approximately RMB 1005 billion by 2027.

Competitive landscape of the industrial robot market

The global industrial robot market is relatively concentrated with high entry barriers. According to a Frost & Sullivan report, in terms of revenue, the top five industrial robot companies combined accounted for 42.8% of the global market by 2023. The company's main competitors are other top global industrial automation companies. In terms of revenue, the company ranked third in the global industrial robot business in 2023, with a market share of 8.9%. Based on sales and revenue in 2023, the company ranked second in the global heavy-duty industrial robot market (referring to industrial robots with an effective payload exceeding 100 kilograms), with market shares of 18.6% and 17.9%, respectively.

Key market drivers for industrial robots

1. Aging population and rising labor costs drive increased automation demand:

Many countries and regions are facing challenges such as population aging and rising labor costs. In the Chinese mainland, the proportion of the population aged 65 and above will increase from 15.4% in 2023 to 17.7% in 2027. According to a Frost & Sullivan report, the average annual salary of urban employees in private units in the Chinese mainland is expected to grow at a compound annual growth rate (CAGR) of 4% from 2023 to 2027. This transformation poses challenges to labor-intensive industries such as manufacturing, as a reduction in skilled workers can lead to labor shortages and productivity declines. Therefore, manufacturing and other operations in many industrial sectors are developing towards automation, resulting in a surge in demand for industrial robots, especially in areas such as the Chinese mainland. These industries can greatly benefit from the scalability and speed provided by industrial robots.

2. Technological Progress:

Technological advancements made or applied in the field of robotics have promoted the growth of the industrial robot market. Traditional robots can only perform a single task, while the latest flexible robots can adapt to different production needs and perform multiple tasks, thereby greatly expanding the application fields of industrial robot technology. The continuous development of digitization has also improved the performance of industrial robots and driven market growth. Digital robots use sensors and data acquisition technology to detect various parameters and indicators in the production process in real time, greatly improving production efficiency.

3. Strong demand in key terminal markets:

Driven by technological progress and rising consumer demand, key end markets for industrial robots (such as the automotive, photovoltaic, and electronics industries) have witnessed significant growth. According to a Frost & Sullivan report, the sales volume of new energy vehicles in mainland China is expected to surge from 9 million units in 2023 to 19.3 million units in 2027, with a compound annual growth rate (CAGR) of 20.9%. Similarly, according to the Frost & Sullivan report, from 2023 to 2027, the revenue of the electronics industry in mainland China is expected to grow at a CAGR of about 4%. The electronics and automotive industries are the two major downstream applications of industrial robots, accounting for approximately 33.1% and 23.4% of the industrial robot end market respectively, based on annual installations in 2023. The growth in the automotive, photovoltaic, and electronics industries indicates strong market demand for industrial robots because industrial robots and automation technologies provide solutions for uninterrupted production and shortened production cycles in these industries.

Frost & Sullivan has extensive research experience in the TMT industry and has assisted well-known enterprises in successfully listing on capital markets. Successful listings include: Tianju Dihé (2479.HK), YunGongchang (2512.HK), Youbo Holdings (8529.HK), Mifos (2556.HK), ZBAO.US, LGCL.NASDAQ, Youbixuan (9880.HK), Beck Micro (2149.HK), Willis (SIX:WILL), ICG.NASDAQ, AIXI.US, Kingsoft Holdings (3896.HK), HaoDong Technology (2440.HK), Xuanwu Cloud Technology (2392.HK), Huitongda (9878.HK), Innovent AI (2121.HK), SenseTime (0020.HK), Qinhuai Data (CD.NASDAQ), Mingyuan Cloud (0909.HK), Century Group (1849.HK), Weimeng Group (2013.HK), WanKaiYilian (1762.HK), AsiaInfo Technology (1675.HK), Hong Kong Asia Holdings (1723.HK), Aurora Mobile (JG.NASDAQ), Jingguan Holdings (8606.HK), Qiyi Technology (1739.HK), Weixin Jinko (2003.HK), Huifu Tianxia (1806.HK), Atlinks (8043.HK), Zioncom (8287.HK), ISP Global (8487.HK), Vobile (3738.HK), Aibo Technology (2708.HK), iClick (ICLK.NASDAQ), Shengye Capital (6069.HK), Anling International (8410.HK), Anke Systems (8353.HK), Junmeng International (8062.HK), Feisida (8342.HK), Future Data (8229.HK), Asia Backup (8290.HK), BAWANG Shares (6657.HK), and others.