Saudi Arabia Home Appliances Market

Saudi Arabia Home Appliances Market Overview:

Saudi Arabia home appliances market size reached US$ 6.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 9.0 Billion by 2032, exhibiting a growth rate (CAGR) of 3.60% during 2024-2032. There are various factors that are driving the market, which include the thriving e-commerce sector that allows individuals to choose from a variety of products, rising population levels, shift towards energy-saving products, and growth in the hospitality and tourism industries.

Saudi Arabia Home Appliances Market Analysis:

• Major Market Drivers: The market is experiencing steady growth, driven by rising preferences for smart home technologies and favorable government initiatives.
• Key Market Trends: The thriving e-commerce sector and rising population levels are main trends in the market.
• Competitive Landscape: Some of the major market players in the Saudi Arabia home appliances industry are provided in the report.
• Challenges and Opportunities: Supply chain disruptions represent a key market challenge. Nonetheless, the rising focus on sustainability, coupled with the increasing demand for connected devices, is projected to overcome these challenges and provide market opportunities.

Saudi Arabia Home Appliances Market Trends:

Thriving E-Commerce Sector

The IMARC Group research report stated that the Saudi Arabian e-commerce sector reached US$ 196 billion by 2023. The growing demand for home appliances due to the thriving e-commerce sector in Saudi Arabia is offering a favorable market outlook. Consumers are using e-commerce platforms more frequently to buy household appliances as online buying gets easier and more convenient. Numerous products are available on these platforms at affordable prices, along with flexible payment choices, drawing in a wide range of individuals. The market is expanding because e-commerce platforms allow people to compare brands. These channels also offer fast delivery, thorough product reviews, and detailed specifications, which is impelling the market growth. In addition, the expansion of both domestic and foreign e-commerce enterprises, along with sophisticated transportation and distribution systems, is facilitating nationwide consumer access to household appliances, including those located in remote regions. This trend is also encouraging manufacturers and retailers in the Saudi Arabian home appliances market to expand their digital presence and offer exclusive deals with better user engagement online.

Increasing Population Levels

The Worldometer estimated 34,095,527 population in Saudi Arabia as of September 20, 2024. The population of Saudi Arabia is growing quickly, which is driving up demand for household goods. In order to meet their daily needs, more families and people need appliances like refrigerators, washing machines, and kitchen equipment, especially in urban areas. Furthermore, the influx of expatriates, many of whom settle in cities for work, also adds to the growing number of households in the country. These expatriates are catalyzing the demand for appliances as they establish new homes and require basic necessities in their living spaces.

Growth in Hospitality and Tourism Industries

According to Arab News, passenger arrivals in Saudi Arabia's travel sector increased by 58% in 2023. This led to a significant reevaluation of its Vision 2030 objectives. The goal of the Saudi Vision 2030 project is to diversify the economy of the country by lowering its reliance on oil while expanding industries like hospitality and tourism. One key component of this strategy is the development of world-class tourism infrastructure including hotels, resorts, and serviced apartments. The growing demand for new hospitality facilities because of the rising number of international visitors in the country is influencing the market positively. Items like refrigerators, ovens, laundry equipment, and dishwashers are in high demand to accommodate the large volumes of guests these establishments serve. Furthermore, especially in a hot country like Saudi Arabia, air conditioners, water heaters, and entertainment systems are essential for offering the comfort and elegance that many visitors demand.

Saudi Arabia Home Appliances Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product and distribution channel.

Breakup by Product:

• Major Appliances
  • Refrigerators
  • Freezers
  • Dishwashing Machines
  • Washing Machines
  • Ovens
  • Air Conditioners
  • Others
• Small Appliances
  • Coffee/Tea Makers
  • Food Processors
  • Grills and Roasters
  • Vacuum Cleaners
  • Others
     

The report has provided a detailed breakup and analysis of the market based on the product. This includes major appliances (refrigerators, freezers, dishwashing machines, washing machines, ovens, air conditioners, and others) and small appliances (coffee/tea makers, food processors, grills and roasters, vacuum cleaners, and others).

Major appliances are often present in every home and are essential to day-to-day living. Because of the temperature in the region, air conditioners are especially important and in high demand. Freezers and refrigerators are also essential for storing food and preventing spoiling. Dishwashers and washing machines are likewise becoming more and more common as people want for home tasks to be more convenient. In line with this, the rising need for these appliances among people with busy lifestyles and hectic working schedules is bolstering the market growth.

Due to the changing consumer focus on time-saving and convenient technology, small appliances are becoming more and more popular. Rising preferences for time-saving kitchen appliances like coffee makers and food processors is contributing to the market growth. Additionally, the demand for vacuum cleaners and other cleaning appliances is rising as individuals are placing a higher priority on hygiene and cleanliness. The growing emphasis on maintaining enhanced health among people is further catalyzing the demand for convenient cleaning home appliances.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• E-commerce
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, specialty stores, e-commerce, and others.

Large retail establishments such as supermarkets and hypermarkets provide individuals with a handy one-stop shop where they can buy household appliances in addition to other things. People who prefer to view things in person before making a purchase frequently choose these stores because of their broad reach and capacity to present a variety of brands and product categories.

Specialty stores concentrate on delivering a carefully chosen assortment of household appliances, frequently accompanied by more in-depth product expertise and individualized user service. These stores cater to individuals looking for specific brands, high-end products, or those who need professional advice during their purchases. Specialty stores are favored for their product expertise and after-sales support.

The e-commerce channel is experiencing rapid growth in Saudi Arabia home appliances market share, driven by the convenience of online shopping, a wider product range, and competitive pricing. The country's easy access to internet resources and growing smartphone adoption are driving the market's expansion. E-commerce platforms are a desirable alternative for individuals since they frequently offer thorough evaluations, comparison tools, and quick delivery.

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The report has also provided a comprehensive analysis of all the major markets in the Saudi Arabia, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Northern and Central regions include the capital city Riyadh, which serves as a hub for business. The rising number of residential spaces in Riyadh is catalyzing the demand for home appliances. Besides this, the increasing population in the region is impelling the market growth. In addition, people are preferring smart and energy-efficient products that aid in lowering carbon footprint.

Western region comprises cities like Jeddah and Makkah, which benefit from strong tourism and hospitality growth, especially due to religious tourism. The increasing number of hotels, serviced apartments, and residential properties in cities like Jeddah is catalyzing the demand for home appliances. The region also has a strong preference for premium appliances driven by a high standard of living and affluent consumers. These factors are providing Saudi Arabia home appliances industry overview in the region.

The growing demand for high-end and luxury appliances, along with the focus on smart home technologies among individuals in the Eastern region is positively influencing the market. Additionally, the expansion of the energy sector is supporting the market growth.

Southern region is experiencing steady growth in home appliance demand, driven by rural-to-urban migration and ongoing housing development projects. The increasing need for affordable, basic appliances, as well as energy-efficient models, is strengthening the market growth.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major home appliances companies in Saudi Arabia have been provided. 
• Top market players are unveiling smart home appliances equipped with advanced technologies. These products cater to the growing demand for energy-efficient and connected appliances. Key players are tailoring their product offerings to meet the specific needs of Saudi consumers. They are developing appliances designed to handle the country’s extreme heat such as highly efficient air conditioners and durable refrigerators. Furthermore, companies are forming alliances and working together to broaden their range of offerings, provide innovative products, and increase the number of manufacturing hubs. For instance, Saudi-based Basic Electronics Company collaborated with leading Chinese electric appliances group Gree on 28 May 2024 to launch a new smart factory in Dammam that will be manufacturing heating, ventilation and air-conditioning (HVAC) products.

Saudi Arabia Home Appliances Market News:

• 16 April 2023: Alesayi Electronics (AEC) announced opening of its first show in Khobar, its overall fourth showroom in Saudi Arabia, which is part of its strategic plan to expand in all cities and regions of the country, for meeting the demands of clients in the city of Khobar and the Eastern region. The showroom has on display some of the well-established international brands of electronic home appliances, including Tefal, Moulinex, Hoover, TCL, and Panasonic.
• 30 May 2024: Modern Electronics Company (MEC), a part of the Al Faisaliah Group, entered a strategic partnership with Arçelik Hitachi Home Appliances Sales Middle East (AHME), to be a distributor of Hitachi Home appliances in Saudi Arabia. Arcelik Hitachi Home Appliances’ commitment to maintain market leadership in the Middle East is now further strengthened with a strategic partnership with Modern Electronics Company. This collaboration is set to expand the reach of Hitachi’s product range, providing Saudi households with reliable and state-of-the-art home appliances.

Saudi Arabia Home Appliances Market Report Scope:

Key Questions Answered in This Report:

• How has the Saudi Arabia home appliances market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Saudi Arabia market?
• What is the breakup of the Saudi Arabia market on the basis of product?
• What is the breakup of the Saudi Arabia market on the basis of distribution channel?
• What are the various stages in the value chain of the Saudi Arabia market?
• What are the key driving factors and challenges in the Saudi Arabia market?
• What is the structure of the Saudi Arabia market, and who are the key players?
• What is the degree of competition in the Saudi Arabia home appliances market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia home appliances market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia home appliances industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.