The India consumer electronics market size is expected to reach USD 124.94 billion by 2030 and is expected to expand at a CAGR of 6.5% from 2022 to 2030.
Rising disposable income, rapid urbanization, and the introduction of novel products in the market are expected to further contribute to the market growth.
The demand for flat refrigerators, washing machines, and TVs is rising with a decline in penetration of products vis-a-vis global levels, urbanization, and increasing disposable income of consumers. There has been an increase in imports from regions such as China and South-East Asia, considered to be low-cost regions, owing to certain free-trade agreements and the availability of low-cost products, in relation to costs about local manufacturing.
To effectively suffice the rising local demand and export demand to the neighboring regions and the Middle East and Africa, global market participants are planning to expand their local manufacturing in India, thus making it an export hub.
However, presently the Indian manufacturers are facing challenges such as an inverted duty structure due to free trade agreements, which makes Indian manufacturing uncompetitive for white goods, including ACs, refrigerators, and washing machines.
The non-applicability of Modified Special Packages Scheme (MSIPS) in several consumer durables; hiked excess duties, under-developed and insufficient local supplier base; and high-cost of manufacturing and capital costs owing to frequently changing energy efficiency requirements also contribute to this scenario.
The drivers contributing to the growth of this market relate to increasing levels of income and urbanization, improved affordability of products, product innovation, the availability of newer variants of products, easy consumer financing, and a rise in the share of organized retail. Increasing local value addition levels and growing investment will observe a manifold jump as an increasing number of OEMs are foreseeing the localization of their products in India.
India Consumer Electronics Market Report Highlights
- The televisions product segment accounted for the second-largest revenue share in 2021. The increasing per capita income, burgeoning middle class, and increasing standard of living in the country are leading to a rise in demand for television sets. Promotion and advertisement activities carried out by the leading industry participants such as Samsung have positively augmented the market growth, and this trend is expected to continue over the forecast period
- The air conditioners product segment is expected to register a significant CAGR from 2022 to 2030. The increased spending power of the average Indian consumer, together with the strengthening of the residential sector in India, will contribute to an increase in demand for air conditioners in the country
- The digital cameras product segment is projected to register the fastest CAGR of 7.8% from 2022 to 2030. The demand in India has been stimulated by its rising popularity among consumers due to its capacity to offer high-quality images. In addition, rising interest in wildlife, fashion, and wedding photography has fueled the expansion of the digital camera market