Appliances Rental Market Size & Share, by Appliance Type (Home Appliances (Ovens, Freestanding Microwaves, Freestanding Automatic Washing Machines, Cooker Hoods, Freestanding Fridges, Freestanding Freezers, Cookers, Built-in Microwave, Built-in Automatic Washing Machines, Built-in Hobs, Built-in Fridges, Built-in Freezers, Built-in Freezers, Freestanding, Dishwasher Built-in Dishwasher), Industrial appliances); Distribution Channel (Online, Offline); Application (Personal, Business) - Global Sup

  • Report ID: 1801
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Appliances Rental Market size is poised to reach USD 249.65 Billion by the end of 2036, growing at a CAGR of 11.6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the appliances rental was USD 66.89 Billion. Over the past century, the growing demand for affordability, and the growth in the economic conditions, along with the continuously changing consumer lifestyle acts as a major growth driver for the rise in sharing the market. According to the World Economic Outlook, global growth will fall to 2.9% in 2023 but will rise to 3.1% in 2024.

There is an increasing demand for kitchen food processors such as espresso machines, and built-in appliances such as dishwashers or cooktops, according to the United Nations COMTRADE database, in March 2023, a US-based inter-governmental organization, Australia’s electrical equipment exports reached up to 3.6 billion sales in 2022, and this data raised about 87% from 6.6 million in 2014. Such demand and awareness are believed to fuel the appliances rental market growth.


Appliances Rental Market
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Appliances Rental Market: Growth Drivers and Challenges

Growth Drivers

  • Increase in Urbanization and Mobility- As urbanization grows, so does the demand for home appliances, which in turn, will drive the demand for appliance rental services. More than 4 billion people now live in urban areas and the rates of urbanization have been increasing rapidly across all regions (in 1800, less than 10% of people across all regions lived in urban areas) due to which urbanization is expected to continue to increase with rising incomes and shifts away from employment in agriculture. The rental services provide convenience, flexibility in renting, easy access to appliances, and other advantages, which make it a preferred option amongst customers over purchasing of appliances. Additionally, the rise in urbanization and mobility has led to an increasing number of customers preferring rental services.
  • Growth in Environmental Awareness- As environmental concerns grow, so does the demand for sustainable practices, including the use of rental services over traditional ownership of appliances. This is because rental services reduce the use of resources and energy while providing access to appliances, without needing to purchase them. In addition, the adoption of appliances rental services is being driven by the growing awareness and promotion of environmental sustainability.
  • Changing Consumers' Lifestyle- As lifestyle changes, so do the consumption dynamics of individuals, which influences the demand for rental services. This is because the consumption patterns of consumers are becoming more focused on convenience, flexibility, and cost-effectiveness, rather than traditional ownership. In addition, the trend of changing consumer lifestyle is also driven by an increasing number of consumers prioritizing experiences over physical possessions.

Challenges

  • Availability of banks and financial loans- The availability of financing allows individuals to purchase appliances instead of renting them. When consumers have access to financing, it gives them the power to make decisions based on their financial capabilities, which results in individuals with strong financial capabilities are more likely to purchase appliances rather than renting them. This limits the growth of the appliances rental market, as the availability of financing restrains consumption of rental services.
  • High maintenance and repair costs.
  • Calculating asset ROI and TCO.
  • Difficulty in tracking and managing equipment availability.

Appliances Rental Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~11.6%

Base Year Market Size (2023)

~ USD 66.89 Billion

Forecast Year Market Size (2036)

~ USD 249.65 Billion

Regional Scope

  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • North America (U.S., and Canada)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Appliances Rental Segmentation

Appliances Type (Home appliances (Ovens, Freestanding & Built-in Microwaves, Freestanding & Built-in Automatic Washing Machines, Cooker & Cooker Hoods, Freestanding & Built-in Fridges, Freestanding & Built-in Freezers, Built-in Hobs, Freestanding & Built-in Dishwasher), Industrial Appliances)

The home appliances segment for appliances rental market is estimated to gain a robust revenue share of 43% in the coming years owing to the constantly changing consumer behavior and higher convenience and flexibility. These appliances have low and sometimes no service and maintenance costs which act as a surge in the market while making them highly affordable. Due to this, the demand for rental services from lower-income groups, who are unable to purchase these appliances is increasing. Additionally, the increase in demand for home appliances including- Freezers, Microwave, Dishwashers, Cookers, Washing Machines, and others is increasing the rentability of these appliances.

Application (Personal, Business)

The personal segment for the appliances rental market is expected to hold the highest share during the forecast period increased demand for rental services from lower-income groups and the shift in working culture i.e., work-from-home that has led to a surge in sales of personal home appliances demand and by 2025, the Indian demand for electronic appliances is expected to increase by billions of dollars. The business application segment, i.e., the use of appliance rental for commercial purposes, is also contributing to the growth of the appliances rental market through the increased demand for rental services from small businesses.

Distribution Channel (Online, Offline)

The offline distribution channel segment in the appliances rental market held the largest revenue size in 2020 and is also estimated to grow during the forecasted period. The online distribution channel is expected to increase as the transformation of society from offline rentals to offline distribution channels. This transition is mainly attributed to the increase in the millennial population along with the rise of middle-class income families, mainly in developing countries. Apart from these, other factors such as ease of shipments, free coupons, and other maintenance benefits from online distribution channels act as a growth driver for this segment specifically.

Our in-depth analysis of the global appliances rental market includes the following segments:

     Appliances Type

  • Home Appliances
  • Industrial Appliances

     Application

  • Personal
  • Business

     Distribution Channel

  • Online Distribution Channels
  • Offline Distribution Channels

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Appliances Rentals Industry - Regional Synopsis

APAC Market Forecast

The Asia-Pacific appliances rental market is predicted to the largest share of about 33% by 2036 impelled by a high refundable security amount along with the weekly rental amount deposit to the service provider. Asia-Pacific has shown positive growth in the appliance rental industry as the increase in the number of people residing away from their hometowns, leaving them with no option other than renting all these home appliances.

North American Market Statistics

The North America appliances rental market is estimated to be the second largest, during the forecast period led by the higher focus on the rising employment opportunities in this particular region, and this has resulted in an increase in the number of more people opting for an independent housing. This had also increased the demand for pocket friendly rental appliances addressing such lifestyle change.

Research Nester
Appliances Rental Market  size
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Companies Dominating the Appliance Rental Landscape

top-features-companies
    • SmartSource Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Flex IT Rent BV
    • GSE Audiovisual Inc.
    • Aaron’s Company Inc.
    • Radio Rentals
    • Red Cherry Computer Rentals
    • Rent-A-Center
    • Electro Rent Corp.
    • Cityfurnish
    • Rent One
    • American Rental
    • AOTO Electronics Co. Ltd.

In-the-news

In The News

  • AOTO Electronics Co. Ltd., launched the “Rental Design LED Panel-SW Series’. It is specially designed for renting purposes and can be used as in indoor or outdoor screen stage for events, theatre, trade shows, and more to provide the perfect visual backdrop.
  • Aaron’s Company Inc., an US based company that leases and retail sales of electronics, home appliances, and furniture had acquired BrandsMart USA for 230 million. This strengthens and expands Aaron’s high-quality products at an affordable cost price.

Author Credits:  Yashika Karodiwal, Radhika Gupta


  • Report ID: 1801
  • Published Date: Mar 11, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing demand for hi-tech and smart residential and non-residential industries are the major factors driving the growth of the market.

The market size of appliance rental is anticipated to attain a CAGR of 11.6% over the forecast period, i.e., 2024-2036.

The major players in the market are Flex IT Rent BV, GSE Audiovisual Inc., Aaron’s Company Inc., Radio Rentals, Red Cherry Computer Rentals, Rent-A-Center, Electro Rent Corp., Cityfurnish, Rent One, American Rental, AOTO Electronics Co. Ltd., Hitachi Construction Machinery, All Japan Relocation Co., Ltd., and others.

The home appliance types segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia-Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Appliances Rental Market Report Scope
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