The data presented in the report “The value of the household appliance supply chain for the competitiveness and the sustainable and circular transition of the Country” show the central role of the Appliance industry and related components for the Italian economy. The study was carried out by TEHA on behalf of APPLiA Italia. The scenario that emerges is of an industry that is alive and strategic for the Country. It employs more than 44,000 people in the core supply chain and more than half a million in the extended supply chain, is historically rooted in the national territory, is integrated in the European industry, and has districts of excellence. The report underlines the considerable economic and social weight of the extended household appliances supply chain. In 2022, it was responsible for 1% of Italy’s GDP and reached a turnover of 114 billion euros.
The importance of export for the Italian companies
The cited numbers are relevant not only domestically, but also in the international context. Italy is third in the EU-27 for exports of household appliances, with more than 6.8 billion euros generated in 2022. As far as components are concerned, Italy also holds a key position, ranking second in the EU-27 for exports worldwide (3.8 billion euro in 2022). Household appliances and related components were Italy’s twelfth export category in 2022 (out of a total of 268 categories).
Abroad, the Italian appliances are appreciated above all for their quality, design, craftsmanship and know-how. This appreciation is found particularly in North America and Asia.
Challenges ahead
In the near future, the sector will face a number of challenges, primarily changes in consumption habits in the short and medium term. Due to the inflationary crisis, the years 2022 and 2023 saw a reduction in sales volumes and a consumer propensity for cheaper products that seems to persist in 2024. APPLiA Italia’s sell-in figures in this respect are significant: -20.5% units sold from December 2021 to July 2024.
In this scenario, digitisation and direct relations with the consumer will play a fundamental role, but also the sustainable and circular transition. 8 out of 10 operators identify environmental sustainability as the main opportunity for the sector.
In this regard, the Italian household appliance park has ample room for improvement in terms of energy performance. Just over 3% of the appliances installed in the homes are in high energy classes. Starting from this consideration, TEHA has developed a model showing that by increasing the penetration of the best technologies available on the market, a reduction in annual energy consumption of up to 14 TWh and a reduction in CO2 emissions of up to 4.7 million tonnes can be enabled. The most conservative scenario, involving the replacement of around 2 million appliances per year (including washing machines, dishwashers, refrigerators and freezers), enables a reduction in energy consumption and CO2 emissions of over 17% by 2030.
