Global appliance brands pivot toward AI, HVAC

Emerging markets, especially in the Global South, are leading demand.

The global consumer appliances market is projected to grow just 1% in 2025, but the industry is undergoing major structural change driven by AI adoption, HVAC expansion, and demand from emerging markets, according to Euromonitor International.

“The global major appliances market reached 570 million units in 2025, with AI playing a pivotal role in product differentiation and consumer appeal,” the report said.

Whilst traditional appliance categories in mature markets are plateauing, expansion is being driven by innovation-led products, HVAC systems, and rising demand across the Global South, where eight of the top 10 growth markets are now located.

Artificial intelligence is no longer an experimental add-on but a standard expectation in high-end appliances. Manufacturers are increasingly embedding AI to deliver personalised, predictive and automated user experiences, ranging from adaptive cooking and smart cleaning to energy optimisation.

Innovation-led categories such as vacuum cleaners and personal care devices grew by 3% and 1% respectively in 2025, supported by AI-enabled product differentiation.

Companies including Samsung Electronics, LG Electronics, Miele, and Siemens are integrating AI for adaptive cooking, smart cleaning, and predictive performance.

Chinese brands like Ecovacs Robotics and Roborock are expanding globally, especially in robotic vacuum cleaners.

HVAC is emerging as a major growth driver, rising 2% in volume in 2025. Companies are shifting focus toward large-scale climate and infrastructure solutions.

Traditional appliance categories are slowing due to weak housing markets and macroeconomic pressure. Brands are targeting niche segments such as pet care, outdoor appliances, and elderly-focused products.

Companies are also shifting to direct-to-consumer and subscription models to generate recurring revenue and improve customer retention.

However, this transition is increasing competitive pressure. Fragmentation in the market—driven by agile Chinese manufacturers and niche entrants—has intensified the need for differentiation through smart features, sustainability, and after-sales service ecosystems.

Despite stagnation in developed economies, demand remains strong in the Global South, supported by rapid urbanisation and expanding middle-class consumption.

“Companies must manage high development costs and tariff unpredictability whilst leveraging servitisation and smart home integration to differentiate their offerings,” the report said. “Success depends on balancing innovation with affordability and capitalising on growth in high-potential regions to offset mature market saturation.”