Saudi Arabia White Goods Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia White Goods Market Trends & Drivers

Growth Drivers

ACs

• Increasing heat and humidity in the environment
• Rising disposable income and changing lifestyles
• Surging investment in the housing sector
• Increasing number of infrastructure projects

Refrigeration Appliance

• Growing food & beverages industry
• Improving retail channels
• Increasing consumer spending

Microwave Oven

• Increasing demand for ready-to-eat products
• Surging household spending Growing food and beverage service industry
• High demand for convection microwave ovens
• Rising number of working women and busy schedules of people in urban cities

Washing Machine

• Rising number of nuclear families
• High demand from the commercial sector
• Emergence of online sales channel
• Surging consumer demand
• Increasing demand for automatic washing machines

Vacuum Cleaner

• Incrementing preference for vacuum cleaners for hygiene maintenance
• Rising number of working people
• Innovative and technological transformations in vacuum cleaners
• Emergence of robotic vacuum cleaners
• Increasing need for cleanliness in residential and commercial places to prevent infections
• Surging development of smart vacuum cleaners

Air Purifier

• Surging health awareness among consumers
• Increasing prevalence of lung-related disorders and airborne infections
• Growing urban pollution levels
• Rising demand for dust collecting smart air purifiers
• Increasing usage of air purifiers to contain airborne contaminants

Large Cooking Appliance

• Increasing consumers desire for sophisticated and hi-tech products
• Rising spending on smart kitchen appliances
• Increasing product launches
• Integration of advanced technologies in cooking appliances
• Increasing demand for ovens at hotels and restaurants
• Surging demand for fast food
• New features and functionalities to provide growth impetus

Cooler

• Increasing consumer spending
• Surging awareness about environmental issues
• Rising technological advancements
• Emergence of wall-mounted air coolers

Water Dispenser

• High portability, easy usage, and simple installation process
• Launch of smart water dispensers with the latest technologies
• Surging demand for clean drinking water
• Increasing usage in the commercial sector

Restraint

ACs

• High maintenance cost of air conditioners
• Phasing out of HCFC refrigerant

Refrigeration Appliance

• Government regulations for energy-efficient commercial refrigeration systems

Microwave Oven

• High power consumption
• Harmful effect on health

Washing Machine

• High electricity consumption
• High cost of automated washing machines

Vacuum Cleaner

• Elevated spending on electricity and for the maintenance of vacuum cleaners
• High cost and battery issues related with household vacuum cleaners

Air Purifier

• High cost associated with air purifiers
• Lack of awareness related to smart air purifiers
• High cost of maintenance

Large Cooking Appliance

• Availability of alternatives
• Big size and difficulties in cleaning and certain operations
• High electricity consumptions

Cooler

• Extremely seasonal products
• Penetration toward ACs

Water Dispenser

• Frequent component replacement, especially during summers
• Require regular cleaning and routine inspection
• High maintenance cost

Saudi Arabia White Goods Industry Outlook

Saudi Arabia AC Market (Largest Product Category)

ACs have the largest market in the white goods market of Saudi Arabia, of 20% in 2024. This supremacy is due to the increasing heat and humidity, rising disposable income, changing lifestyles, surging investments in the housing sector, and increasing number of infrastructure projects. However, the high maintenance costs of air conditioners and the phasing out of HCFC refrigerants act as restraints for the market.

Some manufacturers have been working on developing air conditioners that offer better heating and cooling efficiency with reduced energy consumption.

For instance, in the beginning of 2022, LG began offering ACs with the dual-inverter technology, in order to meet the regulatory requirements related to energy consumption. The exclusive manufacturer and distributor of LG’s air conditioners, Hassan Ghazi Ibrahim Shaker Co. (Shaker) has expanded its production capacity in partnership with LG, also integrating new technologies for enhanced production efficiency. The company continues to expand its production capabilities in the kingdom, while improving its delivery times. This is in compliance with the Saudi government’s Vision 2030, which seeks to enhance local production and achieve industrial self-sufficiency.

Moreover, the Saudi government has launched the Made in Saudi initiative in order to aid local manufacturers. Shaker has also announced a new investment in its AC production facility in Riyadh, which operates under a JV. Industrial robots and AI will be used at the LG–Shaker plant to automate production and optimize operational efficiency. This move will lead to a higher output and enable the plant to produce even the components that are currently procured from external parties.

With the upgrades to its facility, LG–Shaker will augment its manufacturing capabilities and lower production costs, thereby making itself more competitive in Saudi Arabia, which is one of the most-important air conditioner markets in the Middle East. These developments are a reflection of the company’s realization of the importance of stable local production after the pandemic, which is a key step to the kingdom achieving self-reliance.

LG is also actively looking to get involved in the NEOM Project, which will boost the sales of its air conditioners significantly in Saudi Arabia.

Similarly, Basic Electronics, which is a distributor of Gree’s appliances, has expanded throughout the kingdom. Especially, in the split AC market, Gree’s strong position is due to its efficient distribution network and the advanced features of its ACs. The cold plasma health function and the G-Boost compressor are some of the recent advancements made by Gree in its ACs that help it hold a strong position in the county. Additionally, in the freestanding AC division, the demand for Gree’s products is increasing due to the better post-sales service offered by Basic Electronics.

In the same way, the integration of Conda Plus airflow, along with the Wi-Fi control feature, is helping Haier maintain its leading position in the market. Further, the prices of Haier’s ACs become low with a 7-year compressor warranty. For example, Haier ACs with a 12,600-British thermal unit (Btu) cooling capacity and four-way airflow are available for SAR 1,800.

• Based on end user, residential is the largest category in Saudi Arabian AC market.
• Based on distribution channel, multi-brand stores are the largest category and fastest-growing category in the Saudi Arabian AC market.
• Based on price range, medium is the largest and fastest-growing category in the Saudi Arabian AC market.

ACs are divided into the following categories:

• Split
• Window
• Freestanding

Saudi Arabia Refrigeration Appliance Market

The integration of the ThinQ technology in refrigerators was a smart move by LG in Saudi Arabia. The ThinQ technology is available in almost all medium-to-high-price models of refrigerators. This move has helped LG capture a healthy share in the refrigeration appliances market.

Moreover, Haier has been operating in the region since 1998, in partnership with its sole distributor, Al Jabr Electronics. It has been able to leverage the five well-situated outlets of Al Jabr in major Saudi cities, with its HQ in Dammam. Al Jabr Electronics has formed a solid business partnership with many major sales channels, including 300 dealers and specialized stores, countrywide, which has allowed LG to create brand awareness in Saudi Arabia and develop a strong distribution channel.

• Based on end user, residential is the largest category in the Saudi Arabian refrigeration appliances market.
• Based on distribution channel, multi-brand stores are the largest and fastest-growing category in Saudi Arabian refrigeration appliances market.
• Based on price range, medium is the largest and fastest-growing category in Saudi Arabian refrigeration appliances market.

The following three types of refrigeration appliances are available in Saudi Arabia:

• Refrigerator
• Upright Freezer
• Chest Freezer

Saudi Arabia Microwave Oven Market

This focus on convenience and multifunctional cooking options is the major reason retailers have been able to keep up with the demand for the newer LG microwaves, which can cook a variety of dishes. LG’s NeoChef range of 10 models integrated with a smart inverter for even heating, grilling, and defrosting and protected by an antibacterial EasyClean interior coating has proven particularly popular. While LG continues to dominate the microwave oven market of Saudi Arabia, it faces supply challenges, as well as growing competition from less-costly brands, such as those based in China.

In December 2022, Panasonic announced Ahmed Abdulwahed Trading Co. (AAW) as its new distributor in Saudi Arabia. AAW is one of the biggest multi-brand distributors and retailers of smart lifestyle electronic products in the kingdom. The alliance is seen as a step to enhance Panasonic’s business in the kingdom, by creating a value-added supply chain for its customers, specifically in its small domestic appliance segment. With AAW’s in-depth understanding of the local market and strong presence across the kingdom, Panasonic strongly focuses on delivering electrical appliances that meet the unique local demands.

• Based on end user, residential is the largest category in Saudi Arabian microwave ovens market.
• Based on distribution channel, multi-brand stores are the largest and fastest-growing category in Saudi Arabian microwave ovens market.
• Based on price range, medium is the largest and fastest-growing category in Saudi Arabian microwave ovens market.

Saudi Arabia Washing Machine Market

With the rising demand for energy-efficient products, the home laundry appliances offered in Saudi Arabia are undergoing a technological revolution. The key focus of the leading manufacturers of washing machines in the kingdom is energy efficiency, to allow customers to reduce their carbon emissions and electricity expenses. A key factor impelling the key players to innovate energy-efficient appliances is the government’s rules regarding home appliances’ electricity usage. Over primitive washing machines, those with smart features and Energy Star ratings also consume a lot less water. For instance, Samsung's Energy-Star-rated and Wi-Fi-connected FlexWash automatic washing machine uses 4,278 gallons of water in a year, on average.

Further, LG is exploring the integration of AI to reduce the electricity usage of their home laundry appliances. In the same vein, Hitachi Sales Middle East has come up with a new washing machine, which uses the dedicated Abaya program, which is claimed to wash garments without damaging or shrinking the fabric. A lower spin speed is used by this program than others for delicate, while a higher water level prevents rubbing against the pulsator, and two rinse cycles decrease detergent residue. Hitachi will incorporate this feature into its home laundry appliances during the forecast period.

• Based on end user, residential is the largest category in Saudi Arabian washing machines market.
• Based on distribution channel, multi-brand stores are the largest and fastest-growing category in Saudi Arabian washing machines market.
• Based on price range, medium is the largest and fastest-growing category in Saudi Arabian washing machines market.

Saudi Arabia Vacuum Cleaner Market

Brands such as Philips and Samsung offer high-tech appliances at competitive prices. They have also benefited from their strong presence on leading online platforms, such as Amazon, noon.com, and eXtra.com, in part, due to the regular promotions and discounts they run on these e-commerce retail channels.

Philips’ cordless vacuum cleaners are designed for maximum reach and are a brilliant solution for appliances and furniture with a low clearance. The Philips PowerPro Active bagless vacuum cleaner uses the advanced PowerCyclone 7 technology and TriActive nozzle, which is engineered to maximize dust pick-up. The dust container is designed for hygienic emptying. The multiple offerings by Philips and its strong distribution channels have allowed it to dominate the vacuum cleaner market of Saudi Arabia.

• Based on end user, residential is the largest category in the Saudi Arabian vacuum cleaners’ market.
• Based on distribution channel, multi-brand stores are the largest and fastest-growing category in the Saudi Arabian vacuum cleaners’ market.
• Based on the price range, medium is the largest and fastest-growing category in the Saudi Arabian vacuum cleaners’ market.

Saudi Arabia Air Purifier Market

3M’s Filtrete brand filters use a 3-in-1 technology to pull in and trap unwanted particles, while allowing cleaner air to flow through. The filter material has an electrostatic charge, which acts like a magnet, attracting and capturing the majority of the microscopic particles, depending on the filter type. With competitive pricing and a quality product, the company has managed to dominate the category.

Moreover, LG's PuriCare provides fresh and clean air to every part of a house with 360-degree air filtration. This premium device also has the ability to reduce the levels of airborne biological allergens by 75% or more over time. The PuriCare device continuously checks the air quality and highlights it using the PM1.0 sensor and the gas sensor accurately. Additionally, the smart indicator shows the air quality in numbers automatically, with illumination. The PuriCare MLG is also compatible with the SmartThinQ mobile app. One can easily access and control the functions of the air purifier from anywhere with this mobile app. The company has been able to leverage its ties with the Shaker Group and developed a strong distribution channel to sell its products in Saudi Arabia.

• Based on end user, residential is the largest category in the Saudi Arabian air purifier market.
• Based on distribution channel, multi-brand stores are the largest and fastest-growing category in the Saudi Arabian air purifier market.
• Based on price range, medium is the largest and fastest-growing category in the Saudi Arabian air purifier market.

Saudi Arabia Large Cooking Appliance Market

Companies such as Whirlpool and La Germania have witnessed an increase in the demand for their large cooking appliances as a result of their focus on high-tech, quality products and a strong distribution network.

Whirlpool’s built-in oven features advanced electric technology, allowing the user to cook dishes, while saving energy. A halogen lamp allows for an energy-efficient performance. Further, the exclusive 6º SENSE technology allows users to pick among a variety of pre-programmed recipes, following which the oven automatically adjusts cooking temperature and time settings, to ensure perfect results. Moreover, the innovative Cook3 function allows people to cook up to three separate dishes at the same time, without the risk of the mixing of their aromas. The oven’s door has a soft-close design for ease of use.

• Based on end user, commercial is the largest category in the Saudi Arabian large cooking appliance market.
• Based on distribution channel, specialty stores are the largest category, and multi-brand stores are the fastest-growing category in the Saudi Arabian large cooking appliances market.
• Based on price range, medium is the largest and fastest-growing category in the Saudi Arabian large cooking appliances market.

Saudi Arabia Cooler Market (Fastest-Growing Product Market)

Coolers are a rapidly growing category in the Saudi Arabian white goods market, at a CAGR of 7.0% from 2024 to 2030. This growth is associated with the increasing consumer spending, surging awareness of environmental issues, rising pace of technological advancements, and the emergence of wall-mounted air coolers. The market also has some challenges, such as the high seasonality of product sales and penetration of ACs.

Ajlan Coolers offers coolers based on two-stage evaporative cooling—direct and indirect. Ajlan Coolers carries out enhancements and application development in evaporative cooling to offer efficient systems that consume less water and power, by using the quality materials. The company focuses on quality products to gain consumers’ confidence. It also offers customers free inspections for desert coolers, as well as free consulting services to best meet their needs.

• Based on end user, residential is the largest category in the Saudi Arabian cooler market.
• Based on distribution channel, multi-brand stores are the largest category, and multi-brand stores are the fastest-growing category in the Saudi Arabian cooler market.
• Based on price range, medium is the largest and fastest-growing category in the Saudi Arabian cooler market.

Saudi Arabia Water Dispenser Market

Philips’ micro-P-Clean filtration system, which is deployed in its bottled water dispensers, removes microplastics, while its UV light disinfection technology kills over 90% of the bacteria in cold water. The company enjoys a strong market share in Saudi Arabia due to its brand image and product innovation capabilities. Philips also has a strong distribution channel, which allows it to make its products available across the Kingdom.

Panasonic’s Smart Dual Touchless Bottom Loading Water Dispensers offer a multitude of features in a stainless-steel finish. The models are equipped with a 3-in-1 spout for cold, normal, and hot water, with a hot water lock option for child safety. The company enjoys a strong market presence due to its vast offerings at competitive prices.

• Based on end user, residential is the largest category in the Saudi Arabian water dispenser market.
• Based on distribution channel, multi-brand stores are the largest category, and multi-brand stores are the fastest-growing category in the Saudi Arabian water dispenser market.
• Based on price range, medium is the largest and fastest-growing category in the Saudi Arabian water dispenser market.

Competitive Analysis

Saudi Arabia White Goods Market News

In April 2024, Toshiba Lifestyle expanded its product range in Saudi Arabia and made it available through Abdul Latif Jameel.

In March 2024, LG Electronics announced that the LG-Shaker factory in Riyadh, Saudi Arabia, will use the VRF production technology of the company.

In December 2022, home appliance importer Shaker partnered with LG for supplying the latter’s home appliance and home entertainment products.

In December 2022, Hisense partnered with the Saudi Arabia's United Matbouli Group to magnify its operations in the country.