Market Trends
- The global demand for Appliances Rental is increasing on the back of rising millennial population around the globe. Further, frequent change in employment locations of the present generation is increasing the adoption rate of rental appliances. Rent-A-Center, Aaron’s Inc., CORT (a Berkshire Hathway Company) are some of the leading players in the global Appliances Rental Market.
- Freestanding fridge freezers segment is projected to acquire the largest market of appliances rental across the globe.
Introductory Overview
Appliances Rental are hired appliance with a base of agreement for temporary use. There is monthly or weekly rental amount deposited to the service provider coupled with refundable security amount in the initial stage. Products categorized within the appliances rental market are of various types and are used in residential and commercial areas. These appliances are rented on a certain tenure within which the rent is paid periodically. The appliances are subject to maintenance and returned intact to the service providers after the tenure to avail the full refund of the security amount.
Market Size and Forecast
The rented appliances are mostly used in urban areas as the rate of migration of people and students are very high. Most of the migrated population opt for rented appliances as they are more affordable and feasible. People can rent appliances for a fixed period of time which gives them the option of return the appliances after the period is over. This is estimated to escalate the demand for rental appliances across the globe in the future. Low maintenance and service costs, increasing number of people residing out of their hometowns are some of the factors which is bolstering the growth of the global appliances rental market over the forecast period.
Increasing convenience and flexibility provided by the rental appliances companies, higher focus on value experience are some of the factors which is fueling the growth of the global appliances rental market over the forecast period. Growing demand for rental spaces with rental appliances have significantly propelled the demand for built-in automatic washing machines accompanied by increasing commercial laundry service providers around the developed and developing countries of the world.The market size of global appliances rental was valued at USD 4,269.7 Million in 2018 and is expected to cross USD 8,219.0 Million by the end of 2025 by growing at a CAGR of 9.87% over the forecast period i.e. 2018-2025.
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Region-Wise Growth Highlights – 2018-2025
The global Appliances Rental Market is segmented region wise into 5 major regions comprising of North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In North America region, the US appliance rental market is expected to grow on account of rising urbanization and rising GDP from the year 2016 to 2017. Among all rental appliances, it has been observed that freestanding appliances are more preferred in comparison to built-in appliances. Rent-a-Center, Aaron's and Cort are some of the leading suppliers of rental appliances such as fridges, washing machines, air conditioners, room heaters, dishwashers and other appliances across the country.
The market in the region is projected to garner an estimated revenue of USD 1,734.2 Million by end of the forecast period. Additionally, the market in North America region is expected to achieve a CAGR of 9.42% by 2025 as compared to previous year. The Asia Pacific market is expected to witness highest growth rate of CAGR of 10.27% over the forecast period. The rising urban population across the region on account of rising employment opportunities has resulted in an increase in the number of people opting for independent housing. This has further resulted in an increase in the demand for pocket friendly rental appliances addressing the lifestyle changes.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Appliance Type
The global appliances rental market is bifurcated by appliance type into Built-in Dishwashers, Freestanding Dishwashers, Built-in Fridge Freezers, Freestanding Fridge Freezers, Built-in Freezers, Freestanding Freezers, Built-in Fridges, Freestanding Fridges, Built-in Hobs, Cooker Hoods, Built-in Automatic Washing Machines, Freestanding Automatic Washing Machines, Built-in Microwaves, Freestanding Microwaves, Cookers, Ovens and Others.
Among these segments, the freestanding fridge freezers segment is projected to lead and is expected to occupy a global market share of 18.2% by 2025, while growing at a CAGR of 11.38% during the forecast period. Freestanding fridge freezers are available in freezer at the top or freezer at the bottom types with convenience of portability with required food cooling conditions. Increasing innovation in cooling technologies accompanied with rising ease of switching old appliances with advanced equipment's by renting is estimated to impel the market moderately over the forecast period.
Furthermore, Built-in fridge freezers fit into any kitchen cabinet design with doors clad in unified paneling or decorative panels, as per consumer's choice. The demand has been higher for built-in fridge freezers across Northern America on the back of presence of high number of smart homes across the region. Additionally, high college student population demanding for built-in appliances renting with real-estate rental is expected to contribute considerably in the market growth.
By Distribution Channel
The global appliances rental market is segmented online and offline channel, out of which the offline distribution channel segment held the largest market size in 2018 and is estimated to grow significantly throughout the forecast period. Online distribution channels are expected to increase on account of rising conversion of offline rental distributors to online distribution channels. This change is primarily attributed on the back of increasing millennial population along with rising middle class income families around the developing countries. Besides, factors such as, free coupons, ease of shipment, and other maintenance benefits from online channels is expected to drive this segment significantly.
Growth Drivers
Key factors driving the growth of appliances rental market includes cost efficiency, higher convenience and flexibility, and changing consumer behavior. Rented appliances are comparatively more cost effective as compared to purchasing new appliances. Rented appliances have low or no service and maintenance cost which makes them highly affordable. People who are cost conscious would preferably opt for having a rented appliance than purchasing new appliances. Students residing outside their hometown find renting appliances to be more economical rather than purchasing them permanently as the rates are comparatively less. Furthermore, increasing convenience and flexibility provided by the rental appliances companies, higher focus on value experience are some of the factors which is fueling the growth of the global appliances rental market over the forecast period.
Restraints
Availability of other financing such as banks are giving attractive personal loans and credits to their customer for purchasing goods including appliances is projected to hamper the market growth over the forecast period. The banks provide loans and credits at zero percent down payments with EMI’s at a lower interest rate. The presence of banks give options to customers to purchase appliances in monthly instalments’ is one of the prime factors which is resulting in increasing demand for purchased appliances in comparison to rented appliances.
Top Featured Companies Dominating the Market
Rent-A-Center Inc., Aaron’s Inc., Sears Holdings Corporation, CORT (a Berkshire Hathway Company), T and T Appliances are some of the leading players in the global appliances rental market.
T and T Appliance rental operates as electronics and appliance Rental company that offers refrigerators, televisions, washers and dryers to their customers within the Orange County, Los Angeles, and Greater Inland Empire areas. T and T Appliance Rental delivers quality TVs and other home appliances at affordable rental rates.
