The Indian consumer electronics market is expected to grow in double digits over the next several years.
The five primary categories in the appliances and consumer electronics (ACE) market – air conditioners, audio, refrigerators, televisions and washing machines will see 11.7 per cent compounded annual growth until 2025, starting at $12 billion at present. This is based on a new study by Frost & Sullivan and the Consumer Electronics and Appliances Manufacturers Association (CEAMA)
In the same period, domestic manufacturing in this category is expected to grow 17.8 per cent. “With the rise in the purchase of ACE products and favorable government initiatives like ‘Make in India’ and the National Policy on Electronics, India can transform itself into a global consumer electronics manufacturing hub. The domestic value addition for the ACE products stands at 34 per cent in 2019 and is likely to grow to 54 per cent by 2025,” the report stated.
This wave of manufacturing is expected because global brands see India’s consumption picking up. India has a median age of 27 years. The working age population will thereby expand over the next several years, leading to the purchase of more consumer electronics products. Meanwhile, the penetration of many categories, such as air-conditioners, is low so there is plenty of room for new installs.
