Egypt Home Appliances Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Egypt Home Appliances Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Due to COVID-19 pandemic, the home appliances market is currently experiencing a slight decline in the retail sales. However, it has also accelerated consumer willingness to upgrade their spending on small home appliances. Their willingness to upgrade can be divided into two parts. Consumers see the home as a reflection of their own personal aesthetic and are putting more emphasis on the smart home concept. In the meantime, design is also important in purchasing premium small home appliances.

The observations from the study period revealed that there has been an increase in demand for compact and energy-efficient appliances. The increasing construction activities are contributing to the market for inbuilt appliances. The drastically changing climatic conditions are also driving the manufacturers towards manufacturing such products. It is becoming a challenge for the manufacturers to reach the requirements of customers who are dynamic about their preferences. The demand for energy-efficient products is being followed by more compact models and sleeker designs. The population growth, technology infiltration, rising purchasing power, and the people's improving lifestyle trends are some of the critical factors on the requirements and purchase decisions of home appliances in the market.

The brands which offer value-added services like periodic after-sale service, extended warranty, replacing a faulty part if required, simple and quick procedures of communication and servicing are the factors that are affecting the consumers decision making once they get a product that fits their requirement of quality and price. Growing demand for new appliances has also been seen with the high number of replacement cycles of old appliances.

The home automation market is now flourishing in Egypt and the number of people requesting smart home services is growing quite significantly. After suffering from a series of stalls over the last five years due to Egypt’s political climate and economic malaise, the local smart home industry is once again growing modestly. There are a handful of small, young companies in the high-end automation sector, selling and installing automation systems that purveyors advertise as reliable, hack-proof and fully customizable.

Around the world, real estate developers are now outfitting new residences and commercial buildings with smart technology from the get-go, including details like automated sprinklers and green energy systems. Egyptian developers are now starting to catch on to this trend. Revenue in the Smart Home market is projected to reach USD 285.30 Million in 2022.

The social and economic response to the COVID-19 pandemic accelerated digital transformation globally. Egypt was not an exception. Rapidly increasing internet penetration rates have been pushing the e-commerce market to grow in Egypt. A large number of e-commerce platform has also gained the attention of the Egyptians and persuaded them to shift to this platform. Egypt is the 39th largest market for eCommerce with a revenue of USD 5 billion in 2021.Egypt’s Central Bank waived several bank transactions fees for 6 months which it later extended to the middle of 2021. As a result, despite predictions about slowing digital commerce growth in Egypt, Jumia and Noon reported a 940% increase in online sales as the pandemic hit.

With an increase of 44%, the Egyptian eCommerce market contributed to the worldwide growth rate of 29% in 2021. Revenues for eCommerce continue to increase. New markets are emerging, and existing markets also have the potential for further development. Global growth will continue over the next few years. This will be propelled by East and Southeast Asia, with their expanding middle class and lagging offline shopping infrastructure.

The report covers major international players operating in the home appliances market in Egypt. Some of the major players are LG Electronics, Bosch, Bahgat Group, Carrier Corporation, Samsung. The regions hold a great scope for newcomers to enter by providing higher qualitative appliances, with multi-functional features and products with connectivity features. The region holds a great scope for online distributors as well.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support