Market Overview

The major housing equipment market size (plumbing fixtures, plumbing-needed appliances, and power generating equipment) for FY2022 was estimated as 1,943,000 million yen, an increase by 7.7% from the previous fiscal year.
When observing the details, all the market categories increased from the previous fiscal year, mainly because of normalization of supply chains in the countries producing equipment components chiefly in Southeast Asia having eliminated parts shortages, which led housing equipment manufacturers there to recover the reduced production, and because of soaring material prices passed on to product prices. In addition, there was stable demand for relatively high-priced house renovations after people reviewed their dwelling environment when they had extended home time due to the corona crisis.

Noteworthy Topics

Keywords in Housing Equipment Market are “Timesaving” and “Carbon Neutrality”

“Timesaving” and “carbon neutrality” are likely to be the keywords to view the housing equipment market hereafter.

First, “timesaving” becomes important, one of the reasons for this is dual-income households, which is increasing in number, are craving for reducing the burdens of household chores. In association with the social changes of increase in dual-income households, housing equipment manufacturers are actively launching products that contribute to alleviation of household-chore labor.
One example for this is dishwashers. According to Consumer Confidence Survey by the Cabinet Office the rate of having a dishwasher at households with two or more members grew to 37.1% as of March 2023, 15.5 points higher than in March 2005 (21.6%) when the tally started. Dishwashers can expect a long-term market expansion because of improvement in installation rates in newly built homes and expansion of replacement demand.
Next, carbon neutrality has the backdrop of people becoming more enthusiastic about achieving it after the government’s announcement in October 2020 for attaining it by 2050. As ZEH (net zero energy house) becomes mandatory for newly built homes after FY2030, the markets for photovoltaic systems and storage batteries that enable private power generation and private power consumption are growing. As for hot water heaters that occupy a certain level of CO2 emissions from households, it is likely for the replacement to high-efficiency water heaters such as heat pump water heaters and latent heat recovery water heaters to accelerate.

* A net zero energy house (ZEH) is a residence that contribute to achieving carbon neutrality by reducing annual energy balance into zero or less through renewable energy deployment such as photovoltaic power generation, while attaining enormous energy saving through improved heat insulation performance and other methods.  

Future Outlook

The major housing equipment market size for FY2023 is projected to decline by 0.6% from the preceding fiscal year to 1,931,200 million yen.
In detail, the plumbing fixture market is expected to decline by 2.3% on a YoY basis to 1,005,000 million yen, because new construction starts is likely to decrease, and because the consumption is expected to shift to something outward like leisure and traveling, from inward consumption during home time amid the corona crisis, which is likely for the once stable home renovation demand to settle down.
The plumbing-needed appliances market is projected to level off at 554,600 million yen, 0.7% on a YoY, because of the continued effects of price rise, while vigorous demand in the previous fiscal year when component shortages have been eliminated by normalization of supply chains somewhat quietens down.
The power generating equipment market is projected to rise by 2.3% on a YoY to 371,600 million yen, driven by the favorable demand for household energy storage systems. Recent soaring electricity costs seems to have markedly increased those people who aim at private consumption to have the system, which is also boosting the market.

Research Outline