As the global consumer appliance market continues to evolve, the next few years will witness transformative shifts driven by technology, sustainability, and new business models. With an eye on innovation, here are the seven key appliance trends expected to dominate in 2025.
These seven trends highlight the ongoing transformation of the consumer appliances market as it adapts to new technological advancements, sustainability demands, and changing consumer behaviors. As we move into 2025, expect innovation and disruption in how appliances are designed, sold, and used—ushering in a new era of smarter, more sustainable home solutions.
1. AI Integration: The Next Frontier for Appliances
Artificial Intelligence (AI) is poised to redefine the appliance industry, making what was once “smart” into something far more advanced. As we approach CES 2025, AI-powered appliances will take center stage, no longer limited to premium products but expanding into medium- to high-end options. This integration allows brands to offer services that go beyond product functionality, opening new revenue streams through subscription models and service-based business strategies. For consumers, the ability to interact with and control their appliances via AI will revolutionize the home experience, paving the way for more intelligent homes with AI-enabled features in air conditioners, refrigerators, washing machines, and more.
2. Servitization: A New Revenue Stream for Brands
In recent years, appliance prices have faced stagnation, with companies operating under tight margins. However, a shift towards servitization—where companies offer appliances along with ongoing services—has the potential to significantly boost revenue. LG is already leading the way with its appliance subscription programs, which have grown by 60% in 2024. Expanding this model to regions like Southeast Asia and India, LG aims to build customer loyalty through maintenance services and software updates. Samsung has also launched its AI-powered subscription service, and as this trend gains traction, other major appliance brands are expected to follow suit in 2025, further driving the growth of this business model.
3. Sustainability: Embracing Circular Economy
As sustainability becomes a central focus for manufacturers, the appliance industry is leaning into the circular economy. This involves creating products that are designed with their entire lifecycle in mind, focusing on reuse, refurbishment, and recycling. A survey by Miele revealed that most consumers trust circular appliances, with over 80% willing to consider refurbished spare parts. One notable example of circular thinking is Miele’s “Vooper,” a circular vacuum cleaner made from recyclable materials and modular components, which is easier to repair and recycle. In China, Haier has also embraced sustainability by launching a recycling factory aimed at achieving 100% appliance reuse. This reflects the growing importance of eco-friendly innovations in appliances.
4. The Rise of Chinese Brands in Global Markets
Chinese appliance brands are rapidly gaining market share in regions such as Southeast Asia and Latin America. While the domestic market in China faces economic challenges, companies like Haier and Hisense have found success abroad by offering value-driven products aimed at price-sensitive consumers. In Southeast Asia, for instance, Chinese brands have seen their market share of air conditioners jump from 12% in 2018 to 22% in 2024. These brands’ success lies in offering feature-rich products at competitive prices, leveraging strategies like Buy Now Pay Later (BNPL) schemes. As these brands continue to expand globally, competition in the appliance market will intensify.
5. Heat Pumps: A Potential Comeback in 2025
Although heat pump sales experienced a slowdown in 2023 and 2024, the long-term outlook for heat pumps remains strong. In Europe, the phase-out of fossil fuel boilers and the increased adoption of heat pumps will drive demand. The European Union’s new policies, including the ban on the sale of new fossil fuel boilers by 2029, will create significant growth opportunities for heat pump manufacturers. The additional manufacturing capacity expected to come online in Europe in 2025 will further reduce costs, making heat pumps more accessible to consumers and potentially sparking a market revival.
6. The Future of the Smart Home Market
The concept of the smart home, once a distant future, is now becoming a mainstream reality. With the global smart home market expected to exceed USD 600 billion by 2030, the demand for smart appliances will continue to rise. Companies are now integrating AI into products that were once considered “smart,” such as robotic vacuum cleaners, air purifiers, and washing machines. These smart appliances offer greater control and functionality, providing users with more personalized experiences. By 2025, the smart home sector will likely witness even more advanced AI appliances that blend seamlessly into consumers’ daily routines.
7. Incentives and Heat Pump Adoption: Looking Ahead
While heat pumps saw a dip in sales in 2023, the trend towards renewable energy solutions, particularly in Europe, is expected to drive growth in this sector. The European Union’s strategic policy shift away from fossil fuels is setting the stage for heat pumps to make a strong comeback in 2025. The expansion of manufacturing capacity, along with additional incentives, will likely help lower the costs of heat pumps, making them a more viable and attractive option for eco-conscious consumers looking to reduce their carbon footprint.
