Geopolitical tensions, inflation, and a sluggish housing market have dampened global consumer demand for home appliances and display terminals in recent years. Despite weaker B2C purchasing power, companies are turning to new business models and strategic alliances to sustain growth in the commercial market, seeking to offset the shortfall from shrinking consumer spending.
Consumer demand hit by economic slowdown and changing media habits
The slowdown in economic growth, coupled with changing viewing habits for audiovisual content, has accelerated the decline in display terminal sales. Total demand for TVs and similar products is projected to fall nearly 10% in 2025 compared with 2024. The weakness has also spilled over to home appliances and network routers, further pressuring manufacturers across related sectors.
Air conditioner and refrigerator sales slump; small appliances buck the trend
In the home appliance market, Up Young Cornerstone observed that continued weakness in the housing sector has curtailed consumer spending on home purchases, renovations, and durable goods, leading to a noticeable drop in demand for residential air conditioners.
According to Taiwan's Ministry of Economic Affairs (MOEA), sales of air conditioners fell by roughly 20,000 units in the first eight months of 2025 from a year earlier, with the downward trend extending into the second half of the year.
Similarly, LG Electronics reported double-digit declines in air conditioner shipments and nearly a 10% drop in refrigerator demand during the same period. In contrast, small appliances such as air purifiers and dehumidifiers have seen modest growth against the broader downturn.
Firms pivot to rentals, digital platforms, and commercial partnerships
To counter economic headwinds, companies are striving to sustain B2C momentum while expanding into new services and strengthening their foothold in commercial markets. LG has introduced an appliance rental service, showing encouraging results, particularly for air conditioner rentals. Beyond optimizing display terminal technology and specifications, LG is also venturing into OTT streaming and gaming platforms, currently powering over 240 million devices worldwide with its media platform.
Up Young also noted that while residential air conditioning remains under pressure, its partnership with Mitsubishi Heavy Industries (MHI) gives it a competitive edge in the commercial air conditioning segment, especially in energy-efficient centrifugal chillers. This collaboration helps offset fluctuations from the consumer market.
Operationally, Up Young reported revenues of NT$3.81 billion (approx. US$122.98 million) for the first 10 months of 2025, representing a nearly 34% increase from NT$2.85 billion during the same period in 2024.
Businesses brace for continued uncertainty amid geopolitical risks
Looking ahead, companies acknowledge that persistent geopolitical tensions will continue to weigh on operations in 2026, complicating long-term forecasts. In the face of uncertainty, many firms are focusing on internal restructuring, efficiency improvements, and identifying new growth opportunities, laying the groundwork for the next economic upswing.
Article edited by Jack Wu
