Overview

Indian consumer durables market is broadly segregated into urban and rural markets and is attracting marketers from across the world. The sector comprises of a huge middle class, relatively large affluent class and a small economically disadvantaged class. Global corporations view India as one of the key markets from where future growth is likely to emerge. The growth in India’s consumer market would be primarily driven by a favourable population composition and increasing disposable income.

Market Size

The consumer durable industry in India is thriving with the increasing demands of the vast and diverse user base of the country. This sector is expected to reach US$ 20.86 billion in 2020. And by 2025 it will be the 5th largest in the whole world. The urban and rural economy contributes to the growth of this sector, though the major share is contributed by the former. The consumer durable which includes the electronic gadgets, appliances, household items, cleaning equipment, fans etc are utilised by the urban and the semi-urban sectors. With technology penetration, they are used to some extent in rural areas as well. From 2010 to 2019, the consumer durables sector has grown at a steady rate of 8-10%, marking the scope of future prospects. In this decade the sector has drifted in a different direction, let us see how.

Road Ahead

Indian appliance and consumer electronics (ACE) market is expected to increase at 9% CAGR to reach Rs. 3.15 trillion (US$ 48.37 billion) in 2022. Demand growth is likely to accelerate with rising disposable income and easy access to credit. Increasing electrification of rural areas and wide usability of online sales would also aid growth in demand. The government anticipates that the Indian electronics manufacturing sector will reach ~US$ 300 billion (Rs. 22.5 lakh crore) by 2024–25.