The appliances and consumer electronics (ACE) industry in India is gearing up for significant growth in 2025, with projections indicating an increase of 10-15 per cent. This anticipated growth is attributed to several factors including premiumisation, an increase in disposable incomes, and a notable shift towards energy-efficient, AI-enabled, and connected products. Industry leaders have observed a growing consumer preference for high-quality and innovative technologies, signalling an evolving landscape for the sector.
The year 2024 has already been pivotal for the ACE industry, showcasing its resilience in the face of challenges such as rising raw material costs, supply chain issues, and price increases. Currently contributing 0.6 per cent to India’s GDP, the sector has welcomed technological advancements and innovative practices to navigate these hurdles.
Kamal Nandi, the Business Head and Executive Vice President of Godrej Appliances, expressed optimism regarding the industry's prospects: "Looking ahead, we expect the appliances industry to grow approximately 12-15 per cent in 2025." He linked this growth trajectory to factors such as rising incomes, urbanisation, real estate development, and the better penetration of the market in smaller towns and tier-III cities.
Adding to this sentiment, Manish Sharma, Chairman of Panasonic Life Solutions India, noted that advancements in energy-efficient products, premium appliances, and favourable government policies like the production-linked incentive (PLI) scheme will be crucial in driving the sector forward. “In 2025, new-age technologies such as AI, IoT, cloud computing, and automation will continue to democratize technological transformation and deliver smart ecosystem solutions to consumers,” Sharma stated.
The industry’s focus is also shifting towards localisation, research efforts, and sustainable innovation. Sunil Vachani, President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), praised initiatives like the PLI scheme and Make in India for their significant role in boosting domestic manufacturing and attracting foreign investments. Vachani projected a value-based growth of 12-14 per cent in 2024, particularly highlighting the strong demand for energy-efficient products.
In a notable segment of the industry, the room air conditioner (RAC) sector experienced dramatic growth of 30 per cent in 2024, driven by rising temperatures and heightened market penetration in tier I and tier II cities. Pradeep Bakshi, CEO of Voltas, a subsidiary of the Tata Group, noted that the company achieved record sales of over two million units, branding 2024 as a “landmark year.” Looking towards 2025, Bakshi reaffirmed expectations for continued significant growth with an emphasis on AI and IoT integration.
Premiumisation trends are further elevating the ACE industry, leading to an increase in the average selling price (ASP) of household products such as air conditioners, washing machines, refrigerators, and LED TVs. N.S. Satish, President of Haier Appliances India, projected double-digit growth for the industry in 2025, pointing out the importance of differentiated products paired with robust after-sales service.
The demand for advanced appliances, including innovative dishwashers, built-in cooking ranges, and high-capacity washing machines, has been highlighted by Saif Khan, CEO of BSH Home Appliances. "Consumers are seeking superior quality, innovation, and enhanced lifestyle experiences,” he remarked.
Dixon Technologies (India), a key player in contract manufacturing, characterised 2024 as a “transformative” year as India's electronics manufacturing sector surpassed a valuation of $120 billion. Exports within this sector increased by 40 per cent year-on-year. Sunil Vachani, the Executive Chairman, stated, “These achievements underscore India’s growing reputation as a trusted destination for high-quality manufacturing. The journey ahead is promising.”
Looking towards the future, Sharma anticipated a compound annual growth rate (CAGR) of 11 per cent for India's consumer electronics sector, projecting it to reach $35.73 billion by 2029, while also creating five lakh jobs. He remarked, “Indian RAC manufacturing could expand to Rs 100,000 crore by 2029, with exports contributing 35 per cent of total manufacturing.”
With supportive government initiatives, changing consumer preferences, and firm foundational trends, the ACE industry appears poised to achieve new milestones in growth for 2025 and beyond.
Source: Noah Wire Services