What began as a crisis in the wake of the sudden withdrawal of foreign brands from the Iranian market in 2018 has turned into a story of resilience, innovation, and rapid domestic growth.

When leading international companies such as LG and Samsung left Iran following US sanctions, many predicted the collapse of the domestic appliance market. Consumers feared shortages and falling quality, while manufacturers worried about losing access to critical imported parts.

Yet, the shock that many saw as a death blow became a powerful incentive for Iranian producers to rebuild, localize, and modernize their production systems.

Before 2018, Iran’s home appliance factories relied heavily on imported parts, where as much as 85 percent of components came from abroad. In those years, the local share of production for products such as refrigerators, washing machines, and air conditioners rarely exceeded 30 percent.

Today, that figure has reversed. In many factories, over 90 percent of parts are made domestically, and in some product categories, such as gas stoves and evaporative coolers, production is entirely local.

According to the Ministry of Industry, Mines and Trade, local content in home appliance production has risen from 50 percent to 60 percent in just the past year.

Around 1,500 domestic producers now operate in this sector, employing about 300,000 people directly and supporting hundreds of thousands more jobs in related industries—from packaging and logistics to component manufacturing and after-sales service.

Perhaps the most striking achievement is the dramatic rise in output. National production capacity has jumped from about seven million units annually before 2018 to nearly 20 million units today.

This has happened in a period of tight currency restrictions and limited foreign investment—a rare industrial success story at a time when much of the global economy is struggling with stagnation.

Industry experts estimate that increased self-sufficiency prevents the outflow of at least $2.5 billion in foreign currency each year.

Iran’s appliance sector now generates an annual turnover of around $6 billion, including more than $400 million in exports to neighboring markets such as Iraq, Afghanistan, and Central Asia.

Iran’s home appliance sector is not new. It began about 70 years ago with the production of simple household items like samovars initially modeled on Russian designs. Over the decades, the industry evolved through several stages of organization and growth.

In the 1980s, producers of gas-based appliances formed the Council of Gas Appliance Manufacturers, which later became the Iranian Home Appliances Association. The move reflected the industry’s expansion from small workshops to large-scale manufacturing.

As natural gas replaced liquefied petroleum gas in homes, demand for new types of household equipment grew, pushing local producers to expand their capabilities.

Over time, Iranian factories developed strong expertise in metallurgy, plastics, and energy-intensive components, laying the groundwork for the broad manufacturing base that exists today.

While local production has achieved impressive scale, the next challenge is quality and competitiveness. Industry officials acknowledge that to compete internationally, Iran’s producers must go beyond assembling parts and move toward advanced manufacturing, smart technologies, and energy-efficient designs.

The government and private sector are investing in research and development, with particular emphasis on artificial intelligence, energy management, and automation. Domestic companies are also focusing on improving branding and marketing to strengthen their global image.

Currently, most steel, plastic, rubber, and wiring components are made inside the country, but a few strategic parts—mainly electronic boards and display panels—are still imported.

Even major international appliance makers source these complex components from specialized global suppliers. For Iran, the goal is not to produce everything locally at any cost, but to balance efficiency, quality, and technological advancement.

One factor that supports domestic production is Iran’s relatively low energy prices and labor costs, which make manufacturing more affordable compared with many other countries.

These advantages have helped local producers keep prices below international levels, even while investing in modernization.

The ultimate ambition of Iran’s home appliance industry is to move from self-reliance to global competitiveness.

Officials say the industry could soon rival oil and automotive manufacturing as one of the country’s most profitable sectors. It already ranks third in industrial importance after oil and automobiles.

Globally, household appliances are considered one of the top 11 sectors that accelerate economic development. A thriving appliance industry not only provides jobs but also stimulates upstream and downstream industries in metals, plastics, electronics, logistics, and retail.

Iran’s example demonstrates that industrial resilience can grow from necessity. The withdrawal of foreign partners was painful, but it forced a strategic reorientation toward domestic capacity and technological independence.

Now, with most production lines operating locally and exports gradually expanding, Iran’s home appliance sector stands as a rare bright spot in the country’s broader economic landscape.

To sustain this progress, policymakers and industry leaders must focus on improving quality and building recognizable global brands. Competing with well-established international names will require consistent investment in technology, design, and customer trust.

The industry’s transformation so far shows that Iran has the technical and managerial capacity to stand on its own. The next test is whether it can also win over consumers beyond its borders.

If it succeeds, the home appliance sector could become not just a symbol of industrial self-sufficiency, but a genuine engine of economic growth in a post-oil future.