As COVID-19 has affected supply chains and manufacturing both locally and worldwide, Omdia expects a negative impact on major home appliances for the remainder of 2020, with softer than anticipated growth in 2021 and 2022.
Omdia expects the global outbreak of COVID-19 will negatively impact the outlook for major home appliances for the remainder of 2020, with unit shipment forecasts revised downward -1.8 percent in 2020 compared to 2019.
According to data from Omdia, about 57 percent of major home appliances are manufactured and distributed in countries domestically (about 317 million units), while 43 percent of the global demand of major home appliance shipments are imported from other countries (about 240 million units).
The primary exporter of major home appliances is China, which contributes 61 percent of the shipments exported to other countries. Compulsory measures limiting factory output in China has severely impacted supply chains, diminishing the 2020 outlook for major home appliances. As the COVID-19 outbreak develops, Omdia expects a decrease of -7.0 percent on exports as a consequence of this temporal reduction of manufacturing activities and shipping capacity. Not only exports but also local production will be impacted as other key manufacturing countries take similar measures.
Furthermore, it is expected the outbreak of COVID-19 will impact household incomes and further shrink the already stagnant housing market, two key variables that drive major home appliances consumption. The mix of all these variables will result in a decrease of -1.8 percent on the global MHA market but European markets and Latin America will face the most adverse consequences of that impact as a result of an already weakened growth rate previous the outbreak.
Omdia expects, by the start of 2021, manufacturing and consumption will return to their pre-pandemic levels but growth in 2021 is still projected to be softer than original forecasts as will 2022.