CLEVELAND, Sept. 22, 2016 /PRNewswire/ -- US consumer spending on household appliance repairs is forecast to rise 3.3% per annum, the fastest pace of any reported repair segment, to $6.6 billion in 2020. Advances will stem in part from ongoing increases in repair costs, as Original Equipment Manufacturers are expected to continue adding new features and complex systems to their products to encourage purchases.
These findings are featured in Repair Services: United States, a report recently released by Freedonia Focus Reports, a division of The Freedonia Group.
Warranty Work a Key Driver
While desirable new features and higher repair costs will shorten the product lifecycle for existing units, particularly those bearing expired warranties, service providers are projected to record gains in warranty work from the increasing proportion of the installed base covered under warranty as a result. An expected increase in household formation as the economy expands will also drive new unit placements and related spending on repairs covered under warranty.
The full report, Repair Services: United States, forecasts US demand for consumer repair services in US dollars in nominal and real (inflation-adjusted) terms to 2020. Total expenditures in nominal terms are segmented by service as follows:
- audio-visual (A-V) and information processing equipment
- household appliances
- furniture, furnishings, and floor coverings
- footwear and leather goods.
Repair services encompass household spending on the troubleshooting, repair, and maintenance of consumer goods (henceforth referred to simply as "repair"), regardless of payer. Specifically, expenditures include services financed by third-parties, such as insurance reimbursements, as well as services provided without a financial intermediary, such as under the terms of product warranty agreements. Household purchases of materials with the intent to perform repairs themselves are excluded.
To illustrate historical trends, total expenditures and the various segments are provided in annual series from 2005 to 2015.
Please link any media or news references to our reports or data back to www.freedoniagroup.com.
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
- total historical market size and industry output
- segmentation by products and markets
- identification of market drivers, constraints, and key indicators
- segment-by-segment outlook in five-year forecasts
- a survey of the supply base
- suggested resources for further study.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/freedonia-focus-reports-us-household-appliance-repairs-to-see-strong-growth-through-2020-300332751.html
SOURCE The Freedonia Group