World demand for major household appliances (white goods) is projected to increase 3.1 percent annually through 2011, exceeding 480 million units.

Demand in the Asia/Pacific region, in particular China, will continue to benefit from above average urban population growth and healthy gains in the number of households. India will have the fastest growth of any nation, benefiting from low penetration rates and rising standards of living. Above-average growth will occur in the Africa/Mideast and Latin America regions due to strong gains in the number of households and rising per capita incomes. Eastern Europe will also present opportunities, as a growing middleclass increases its usage of appliances such as microwave ovens and clothes dryers.

These and other trends are presented in World Major Household Appliances, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Growth is also expected in the developed nations, despite the relatively high rates of market penetration. Advances in these regions will primarily be supported by replacement demand, as users both replace broken equipment and trade up to newer models. Manufacturers will continue to introduce new technological innovations as away to encourage upgrades. Among innovations that will boost demand are more efficient appliances designed to offer cost-reducing and “green” alternatives to older models.

China is the world’s largest major household appliance market, and is also the world’s largest producer and exporter of these products. However, growth in exports will slow from the torrid pace of the 1996-2006 period, in part due to increasing competition in offshore markets from other low-cost producing nations as well as to the establishment of offshore facilities by some Chinese manufacturers.

Microwave ovens will post the fastest gains of any product group through 2011due to their shorter lifespan compared to other white goods. In addition, significant untapped market potential exists in numerous countries, especially in the developing regions. Dishwashers will match industry growth, although price, size and cultural considerations will prevent these items from becoming commonplace in most areas where they are not already established. Refrigerators, freezers and conventional ranges will experience below-average gains, but will benefit from rising income levels in developing nations.

World Major Household Appliance (published 01/2008, 434 pages) is available for$5,800 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326.For further details, please contact Corinne Gangloff by phone 440.684.9600, fax440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.