The major household appliance sector has a sizable influence on the home improvement industry and is heavily impacted by the new home market. Because products within this category tend to have a higher price point, they account for the highest median spend among customers.

Like a majority of product categories, large home appliances have struggled in terms of market growth recently in part due to availability constraints, limited consumer need (not every home needs 3 washing machines), and pull forward purchases over the last 2-3 years combined with long life cycles. Looking ahead into 2025 and beyond, the market forecast is more positive.

Currently customers continue to be weighed down with financial and economic concerns, which translates into more price sensitivity and hesitancy to conduct large home improvement projects or make large purchases in general. Manufacturers and retailers must be acutely aware of current trends in the major home appliance market and the preferences, challenges, and purchase motivators of consumers in order to capture some of the projected growth over the next few years.

What is the Major Home Appliance Market Size?

Major household appliances include refrigerators, freezers, dishwashers, ranges, microwaves, and washers and dryers; this product category doesn’t include dehumidifiers, room air-conditioners, or outdoor gas grills.

As a product category, major household appliances has experienced a small dip in the market in 2024, according to the Home Improvement Research Institute’s (HIRI) U.S. Home Improvement Products Market Forecast from June 2024. However, the category is forecasted to grow roughly 4.4% between 2025 and 2028, which is an even stronger compound annual growth rate (CAGR) than HIRI’s research earlier this year indicated. 

In general, it’s been the consumer side of the market struggling more than the professional market, but both are projected to have a similar growth rate over the next few years. The consumer market is projected to grow to about $41.4 billion in the U.S. by 2028, while the professional market will hover about $4.2 billion.

As per the U.S. Bureau of Labor Statistic’s Producer Price Index (PPI) for Major Household Appliance Manufacturing, there was a huge spike in prices within the industry in mid-2021 to mid-2022 before leveling off through the end of 2022. Over the past year and half, manufacturing prices for major household appliances have steadily increased.

The major players in the household appliance market—in terms of both dollar share and unit share—are Samsung, LG, General Electric, and Whirlpool.

What is the Outlook for Major Appliance Sales in 2025?

To prepare for the expected growth in the large home appliance market, manufacturing and retail brands can use data about customer behaviors and preferences, from a desire for energy efficient and high-functioning households to an increasing willingness to select a non-familiar brand. 

Here is a look at some of the trends in the home appliance industry and how they will impact the market’s growth over the next few years:

1. Major Household Appliances Account for the Largest Median Spend

In terms of home improvement projects and activities, major household appliances have the largest median spend in 2024, according to HIRI’s Retail Selector report from June 2024. The median spend for a single purchase occasion is roughly $1,000, which tops the median spend for kitchen remodeling, floor coverings, and doors and windows. Not surprisingly, customers are less likely to make other purchases for home improvement products during a shopping trip that includes the acquisition of a large appliance, which is a big expenditure itself. The higher price point for this product category may contribute to growth in the market between 2025 and 2028.

2. Adoption of Smart Home Appliances is Rising

As smart devices become further integrated and easier to use, homeowners are increasingly drawn to the convenience and interoperability of smart appliances within the residential setting. In the U.S., about 40% of homes have at least one smart appliance, and the smart home market is projected to grow by about 10% from 2025 to 2028, according to research from Oblero. The means that by 2028, it’s likely that 100 million households will be using smart devices in the U.S. 

When it comes to large household appliances, smart features include refrigerators that alert the homeowner if a door is left open; a wash machine that notifies your smart phone when a cycle is done; or ovens that will turn off when food is ready. More advanced features allow remote programming for cooking and ordering food as well as remote monitoring and self diagnosis of the appliance. Industry stakeholders should explore the potential to refine the technological aspects of major home appliances and enhance interoperability to meet the demand from customers.  The key will continue to be simplicity that serves a need, not just tech for tech’s sake.

3. Energy Efficiency and Sustainability Matter to Customers

Major household appliances have a significant impact on a residence’s energy consumption. Consequently, property owners—whether homeowners or landlords who manage multi-family housing—are increasingly conscientious about selecting models that are energy efficient. The demand for energy optimization is expected to contribute to the growth in the major home appliance market as individuals consider replacing older, less-efficient models for newer products engineered to meet today’s standards. Certain consumer segments are driven by sustainability and environmental factors, not just a return on their investment. Much of the smart technology mentioned above is related to this goal: making appliances more environmentally friendly and helping households better manage (and conserve) their energy usage. The U.S. Department of Energy’s Appliance and Equipment Standards Program and other government regulations also influence the major home appliances market in the U.S.

4. Drive from the Millennial Market

As a demographic, millennials are an important driver in the home appliance market. This age group is actively buying new or renovating existing homes to accommodate expanding, and even multi-generational, families. They also have more purchasing power at this time. Large appliance brands and retailers should consider how they can target this demographic more effectively and build their loyalty. This includes adapting marketing strategies and understanding millennials’ preferred channels and shopping behaviors. This large generation can be diverse with some in their 40’s earning a high income versus those about to turn 30 with less to invest.  Contractors are no different, with some serving luxury and others entry level.  Defining customer segments is critical to knowing what influences a purchase, where, when and how.

5. Brand Loyalty has been Decreasing

When it comes to brand loyalty, customers are more likely to be motivated by cost and availability for major home appliances. Whether they’re looking for a product for a new home or replacing an older, defunct unit in their existing home, there is typically a sense of urgency around choosing a product like a dishwasher, stove, or wash machine. 

Customers are willing to overlook brand loyalty or try one that is unfamiliar if they can find a replacement product from a different brand more quickly or conveniently—and within their budget. Part of this behavior may be a residual effect of the COVID-19 pandemic, when supply chain issues, backlog, and other economic pressures motivated property owners and professionals to be more willing to try new brands. For home appliance brands, there is a growing need to cultivate loyalty by offering a superior customer experience, as well as addressing supply chain disruptions that negatively affect product availability.

6. Expanding Purchase Channels

About two-thirds of customers still make their purchase of a major appliance at a physical store, with home centers being the preferred retailer type, according to findings by The Home Improvement Research Institute. However, online purchases account for about 20% and buying online and picking up in-store accounts for another 13% of other purchases. 

Looking forward, customers have several options for where and how to purchase large home appliances. Online channels—through Amazon or even Best Buy and Costco—can be appealing because of their convenience and promise of delivery. While online channels don’t account for the same percentage of sales as they did during the COVID-19 pandemic, this purchase method maintains a higher rate than in 2018.  

Smaller local and regional distributors are wise to maintain a robust online presence that is able to compete, whether that’s by offering similar features, such as integrated product comparison tools, or by offering superior customer services, targeted marketing, and customer follow-up. Meanwhile, some brands, like Samsung, have opened experience retail stores to let customers who prefer brick-and-mortar channels to see and test products in person.

7. Urbanization and Changes in the Housing Market

Growth in the major home appliance market is also likely to be influenced by various housing trends we’re witnessing across the country. According to Grand View Research, the growing housing sector in the southeast region of the U.S., as well as a rise in consumer spending in this region, will help drive the market for large household appliances in the forecast period. 

However, the lock-in effect continues to keep families in their homes longer at present, and this situation isn’t expected to change until mortgage rates drop to a lower percentage, and housing availability increases to potentially reduce median home prices. Replacing older appliances is one way that homeowners can maintain the comfort and convenience of their current housing situation, and overall quality of life, until they are able to relocate. 

Additionally, once the headwinds settle for build-to-rent (BTR) and multifamily housing sectors, new projects will be undertaken in various metropolitan areas and low-density suburbs outside large cities as a result of significant rent growth and tight vacancies over the past few years. These types of projects provide an opportunity for large household appliance brands within the market as well.

Using Custom Research to Inform Business Strategies

Knowing the trends shaping the home appliance market can help you identify new competition, as well as new opportunities, and make business decisions accordingly. While several trends are happening on a larger scale, manufacturing and retail brands in the home improvement industry can also benefit by gaining more customized research and insights about their particular market. 

That’s where our building product research experts at The Farnsworth Group come in. We have extensive experience in the home improvement industry and helping stakeholders create successful customer, product, brand and market strategies backed by our proven market research solutions. Learn more about commissioning custom market research to make the right call to win with your end-users, channel customers, and in the appliances market overall.