The global home appliances market was valued at $174.07 billion in 2017 (1) and is projected to reach a value of $203.37 billion by the end of 2023 (2) at a CAGR of 3.6% over 2016-2026. Asia Pacific is where the growth will be the highest across all segments.
The global home electronics & appliances market is on a steady growth driven by the global population growth and specifically by a growing middle-class with increased disposable income in a number of countries. The digitalization and competitive pricing are the main drivers within the electronics and appliances market.
Technological innovations are significant across all segments and the prefix "smart" is often applied to appliances. Smart appliances of all kind are fuelling the market growth and new appliance categories are appearing in addition to the traditional segments of kitchen and washing appliances. Entertainment and information access are the categories with the highest growth.
While new start-ups are bringing innovations across many usages, the market remains fairly concentrated with few major players.
The major trends in the electronics & appliances market are accelerating the transformation of the market. The key words are smart, automation and e-commerce.
Smart household appliances and the so-called Internet of Things (IoT)
The proliferation of new appliances is driven by the ability to simplify appliance’s operation and improve the operator’s comfort factor via smartphones. Internet of Things (IoT) technology is the interconnectivity of physical objects and devices that are integrated with sensors and software that allow them to exchange and collect data. IoT is for the majority of the brands translated by the word "smart". These new smart capabilities fuel the demand for new appliances. The rise of Artificial Intelligence (AI) is part of the new technologies embedded into smart appliances (e.g. Amazon Alexa and Google Assistant and more to name a couple).
Automation and Virtual Reality
Robotics are rising across production lines, automated inspection is eliminating errors in the production line, preventive maintenance in manufacturing lines reduces downtime, automated logistics increases productivity and lowers costs. Virtual Reality (VR) technology is adopted by electronic manufacturing companies to improve manufacturing efficiency as digital design, simulation, and integration eliminates defects in the product design. According to a report by the Boston Consulting Group (BCG) in 2016, 1.2 million industrial robots are expected to be deployed by 2025 within the electronics and appliances market.
e-commerce and online
Even more than in other segments, e-commerce and online are the primary channels to engage with consumers. The electronics and appliance industry can't afford a weak online presence. Traditional retailers are witnessing the growing domination of Amazon and Alibaba. When speaking of home electronics, building a loyal customer base is achieved with the help of strategic customer outreach programs including contests, forums, social media campaigns with insightful online content engaging individual customer at different times for different sets of products and services.
From a packaging standpoint and depending on the segments, folding carton and corrugated are the primary materials followed by pouches. Large appliances need to be protected effectively and easy to install. Corrugated boxes are the preferred material as robust and easy to recycle for all consumers. Many large appliances (e.g. TV) are no longer in brown boxes but in white packaging with high quality graphics and images on the box especially for retail channels where the box becomes the silent sales representative.
For smaller appliances, brand owners systematically rely on the packaging to carry the product's benefits, the quality and the brand. The box is part of the consumer experience and since the launch of the first iPhone and its famous white box with a unique design, many brands are copying the concept. This trend demands high-quality printing and sophisticated converting - cutting, folding, gluing.
The BOBST DRO family has been designed to accommodated the most complicated jobs with high graphics quality. The BOBST DRO 1624/28/32 NT RS is the most productive press on the market. The BOBST FFG 924 or 1228 are the most productive machines delivering up to 33.000 boxes per hour. For high format boxes production, the FFG 1232/1636 NT RS are the best solutions on the market. For brown boxes in very high productivity, the BOBST FFG 8.20 EXPERT is the industry benchmark in terms of speed and fast order change for a fully automated complete line. For brand owners requiring very high quality graphics incl. images, the BOBST THQ FlexoCloud Technology is the most advanced one pass platform delivering quality, productivity at low operating costs and all this for boxes but also for POS / POP / Displays. In addition, BOBST offers security printing features for anti-counterfeit and track & trace - features required by brands.
BOBST's MASTER CI 90SIX CI flexo press is designed to deliver premium quality on a wide range of carton thickness including heavy substrates. An array of auxiliary systems that facilitate change-overs ensure maximum profitability even for short runs and even with the largest formats. Thanks to its sophisticated mechanical and electrical design the machine can handle even low grammage which further increases the efficiency of your specialized production.
A typical packaging for electronics & appliances is made using micro corrugated flute which provides protection and looks good. Printed instructions and specifications are often printed directly onto the packaging which requires adjustable printing methods for multiple languages and regulations. Most of the sheets, offset printed, in combination with microflutes single or double faced board, will be well converted with the MASTERFLUTE TOUCH in-line laminating solutions providing highly efficient production lines for litho-laminated corrugated board.
Brand owners and packaging designers aiming at creating striking differentiation will use hot foil stamping. With almost fifty years of experience in the design and manufacture of foil stamping machines, BOBST has remained at the forefront of advances in this technology. When it comes to packaging enhancement of large formats, EXPERTFOIL 104 FR is the unique solution on the market with its format VI. It is the only hot foil stamper with 600 tons of embossing pressure, enabling very deep embossing with superb quality. It maximizes foil economy with automatic foil control, continuous self-adjustment of foil web tension during production and allowance for processing of large size foils at full running speed. When it comes to packaging enhancement of smaller formats, MASTERFOIL 106 PR or VISIONFOIL 104 H are the appropriated solutions.
Large micro-corrugated or corrugated boxes produced in high volume will find the perfect solution with the BOBST EXPERTCUT 145 PER die-cutter. This machine will deliver unbeatable product quality thanks to a precise and powerful register. When it comes to flat-bed die-cutting of corrugated board and litho-lam, MASTERCUT 1.7/2.1 is the pioneering solution that delivers higher running speeds, fewer stops, shorter make-readies, and matchless quality.
For folding carton boxes, the most versatile and productive folder-gluer MASTERFORLD 110 offers the perfect configuration to deal with complex packaging. The device SPEEDWAVE 3 -for crash-locks will save you time and deliver exceptional folding quality; while the high performance packer CARTONPACK 4 with CASE ERECTOR increase your productivity by automatically filling your shipping containers.
Whatever type of corrugated board or litho-laminated boxes produced, EXPERTFOLD 165 has been designed to give you complete control during the folding process. With its straight-line, crash-lock, 4&6-corner capabilities and quick setting times, this folder-gluer provides the versatility and flexibility needed to meet whatever request your clients might have. Any faulty box will automatically be ejected with ACCUEJECT XL device. It ensures high quality production while simultaneously reducing waste and cost. The highly productive and fully automatic packer, STREAMPACK will allow you to realize the full potential of your folding-gluing line. This patented equipment bundles a large range of box formats and types, from solid board up to double wall corrugated board.