New Delhi: The appliances and consumer electronics industry expects 10-15 per cent growth in 2025 on the back of the premiumization trend, driven by rising incomes, changing preferences towards energy-efficient and connected products with innovative features such as AI and increasing desire for global quality products. The year 2024 was transformative for the industry, in which it bounced back despite challenges such as rising raw material costs, price hikes, and supply chain disruptions and displayed resilience by embracing technology and innovation. The industry, which contributes 0.6 per cent of the GDP, is witnessing a transformative shift towards premiumization, increasing the average sale price (ASP), driven by rising income and young demography with changing preferences. Besides, factors such as a growing economy and urbanization, real estate growth, and increasing penetration into smaller markets like tier-III cities further help the industry grow.
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"Looking ahead, we expect the appliances industry to grow approximately 12-15 per cent in 2025," said Kamal Nandi, Business Head and EVP at Appliances Business of Godrej Enterprises Group. The growth of the consumer durables industry will be driven by the adoption of products with higher energy efficiency and a preference for premium and connected appliances and will be fuelled by policies like PLI on the supply side, said Panasonic Life Solutions India Chairman Manish Sharma. "In 2025, new-age technologies such as Artificial Intelligence (AI)/Internet Of Things (IoT), cloud computing, robotics, and automation, to name a few, will continue to be leveraged to democratize technological transformation and deliver smart ecosystem solutions to the consumers," he said. Besides, the industry is also emphasizing enhancing localization, research and innovation and offering forward-looking, sustainable solutions, propelling India towards becoming a global hub for manufacturing, said Sunil Vachani, the President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA).
India's Consumer Electronics and Appliances Sector Sees Robust Growth, Fueled by Innovation and Premiumization
"Initiatives such as the production-linked incentive (PLI) schemes and Make in India have been instrumental in enhancing domestic manufacturing and attracting global investments," he said. The Consumer Electronics and Appliances (ACE) industry expects to continue having a 12-14 per cent value-based growth in 2024, reflecting robust consumer demand for energy-efficient and innovative products, Vachani said and added that in 2024, the room air conditioner (RAC) segment saw about 30 per cent growth driven by rising temperatures, evolving consumer preferences, and increased market penetration in tier-1 and tier-2 cities. For makers such as Voltas, 2024 was a "landmark year" in which the Tata Group firm achieved record-breaking air conditioner sales of over two million units. "Looking ahead to 2025, we anticipate significant growth," said Voltas Managing Director and CEO Pradeep Bakshi, adding, "Trends like AI integration, IoT-enabled appliances, and feature-led innovations shaping consumer preferences, we are focused on strengthening our R&D capabilities and expanding our product portfolio to meet these trends."
Industry Growth: Appliances sector expects 10-15% growth in 2025.
Haier Appliances India President N S Satish also expects double-digit growth helped by premiumization, which has increased the average selling price (ASP) in the industry segments such as - AC, washing machine, refrigerator, and LED TV. He said 2025 should be a good year as the fundamentals are clear. The economy is doing very well, and customers are well aware of the technology. So obviously, the brands that can offer a differentiated product and proper after-sales service and communication will do well next year also.
BSH Home Appliances MD & CEO Saif Khan said the growing demand for premium appliances such as high-capacity washing machines, advanced dishwashers, built-in cooking ranges, and premium refrigerators is driving positive sales momentum in the consumer durables sector as consumers seek superior quality, innovation, and enhanced lifestyle experiences.
India's Electronics Manufacturing Sector Surpasses USD 120 Billion, Poised for Strong Growth
According to leading contract manufacturer Dixon Technologies (India), 2024 has been a "transformative" year for the electronics industry and the country as a global manufacturing hub. "The industry achieved remarkable milestones, with India's electronics manufacturing sector surpassing a value of USD 120 billion and exports witnessing a robust 40 per cent growth year-on-year," said Sunil Vachani, its Executive Chairman. These achievements underscore India's growing reputation as a trusted and competitive destination for high-quality manufacturing, said Vachani, also the President of CEAMA.
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"The journey ahead is promising, and together, we aim to scale greater heights while strengthening India's position in the global supply chain," he said. According to Manish Sharma, India's consumer electronics sector is also expected to deliver remarkable growth, with a CAGR of 11 per cent, reaching USD 35.73 billion (Rs 3 lakh crore) by 2029 and creating five lakh jobs. "It is estimated that Indian RAC manufacturing has the potential to expand to Rs 100,000 crore by 2029, with exponential opportunities for allied industries wherein the contribution of exports is expected to be 35 per cent of the total manufacturing," he said.
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