India Home Appliances Market Report and Forecast 2024-2032

India Home Appliances Market Size

The India home appliances market reached a value of approximately USD 77.74 billion in 2023. The market is expected to grow at a CAGR of 5.70% between 2024 and 2032, reaching USD 127.07 billion by 2032.

India Home Appliances Market Outlook

• As per industry reports, about 50% of households own a microwave oven and 33% of Indian households own a refrigerator.

• The market is expected to see a 20-35% increase in sales of refrigerators and air conditioners this summer, driven by hotter than usual weather predicted across the country.

• Godrej Appliances is expecting a 20% growth in sales of air conditioners, and it announced an additional investment of around INR 800 crore in expanding its manufacturing capabilities, aiming to close the current fiscal year with a revenue of INR 8,500 crore.

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India Home Appliances Market Growth

Home appliances are devices that help in various household activities such as cleaning, cooking, and storing food, among others. Some of the common home appliances include air conditioner, washing machine, clothes dryer, refrigerator, freezer, water heater, and dishwasher. Utilisation of these appliances help individuals in saving both time and energy while efficiently finishing the household chores.

Some of the factors aiding the India home appliances market development include the modern Indian consumers' time-constrained lifestyle, which necessitates home appliances that perform seamlessly without glitches. Additionally, factors like rising disposable incomes, improved living standards, and the growing awareness of energy-efficient and smart appliances contribute significantly to the expansion of the home appliances market in India.

Industry Outlook

A World Bank report estimates that India will need to invest $840 billion in urban infrastructure over the next 15 years, averaging $55 billion annually, to meet the demand of its rapidly growing urban population. By 2036, 600 million people, or 40 percent of the population, will reside in urban areas. Currently, the central and state governments fund over 75 percent of urban infrastructure, while urban local bodies finance 15 percent through surplus revenues.

According to the India Brand Equity Foundation, the Interim Budget 2024-25 increased the capital investment outlay for infrastructure by 11.1% to Rs. 11.11 lakh crore (US$ 133.86 billion), which is 3.4% of the GDP. Foreign direct investment (FDI) in construction development (including townships, housing, built-up infrastructure, and construction projects) and construction (infrastructure) activity sectors stood at US$ 26.54 billion and US$ 33.52 billion, respectively, between April 2000 and December 2022.

According to the India Brand Equity Foundation, the real estate market in India is projected to grow from Rs. 12,000 crore (US$ 1.72 billion) in 2019 to Rs. 65,000 crore (US$ 9.30 billion) by 2040. By 2030, the market size is expected to reach US$ 1 trillion, and contributing 13% to GDP by 2025. The sector is forecasted to expand to US$ 5.8 trillion by 2047, making up 15.5% of GDP. In FY23, residential property sales hit Rs. 3.47 lakh crore (US$ 42 billion), a 48% increase year-on-year. Developers are set to complete approximately 558,000 homes in 2023.

The demand for residential properties surged in top cities, driven by mid-income, premium, and luxury segments, despite high mortgage rates and property prices.

The Government of India, alongside state governments, has launched several initiatives to promote real estate development. The Smart City Project, aiming to build 100 smart cities, presents significant opportunities for real estate companies. This, in turn, is expected to favour the home appliances market share in India.

Recent Developments and Key Trends

Several benefits of home appliances, the introduction of energy-efficient appliances, and the growing penetration of market in rural areas are factors boosting the India home appliances market expansion.

May 2024

FCB Interface secured the creative mandate for Philips Home Appliances, aiming to drive marketing and communication strategies for Garment Steamers and Air fryers. This partnership solidified FCB’s position as a key player in promoting Philips Kitchen Appliances and Garment Care products.

April 2024

LG Electronics introduced cutting-edge kitchen appliances at Milan Design Week 2024, featuring the Signature Kitchen Suite built-in oven, free zone induction hob, and downdraft hood. These innovative products offer premium design, convenience, and elegance and allows the brand to reach European consumers.

April 2024

Samsung has announced AI TVs in India, such as Neo QLED 8K, Neo QLED 4K, and OLED TVs at the 'Unbox & Discover' event in Bengaluru. The new TVs are designed to deliver unparalleled visual immersion and sound quality, solidifying Samsung's position in the Indian market.

April 2024

Voltas became the first brand to surpass the 2-million-unit sales figure in in the fiscal year 2023-24. The company recorded a robust 35% year-on-year growth in sales, driven by strong consumer demand and its extensive distribution network across the country.

Rising adoption of home appliances in rural areas

Increasing urbanisation and improvements in connectivity of rural areas is likely to increase the overall India home appliances market value. With rising urbanisation and enhanced connectivity, home appliances are becoming easily accessible and widely adopted in rural and urban areas of the country.

Rising awareness about advantages of home appliances

Growing promotions of home appliances and rising awareness about their advantages are increasing the demand for the regular use home appliances in India. As a wide range of products are becoming available in varying price points, more consumers are investing in appliances to improve their daily lives, which is expected to aid the India home appliances market demand.

Increasing demand for smart and connected appliances

Smart refrigerators from Samsung and LG, smart air conditioners from Voltas, and smart washing machines from Bosch are gaining popularity in India. These appliances offer features such as remote control via smartphone apps, energy usage monitoring, and compatibility with virtual assistants like Amazon Alexa.

Shift towards energy-efficient appliances

Leading brands like Whirlpool, Haier, and Godrej are introducing a range of energy-efficient appliances in the Indian market, such as 5-star rated refrigerators, inverter technology air conditioners, and eco-friendly washing machines. These appliances help consumers save on electricity bills.

India Home Appliances Market Trends

Companies like Panasonic and Symphony are expanding their distribution networks and retail presence in tier-2 and tier-3 cities of the country to reach a wider customer base. These brands, by entering into partnerships with local retailers and leveraging e-commerce platforms, are making their products more accessible to consumers in smaller towns and cities. This strategic expansion drives sales and foster brand loyalty, contributing to the overall India home appliances market growth.

The market is further expected to benefit from the introduction of advanced devices, such as AI-powered refrigerators and app-controlled appliances.

The Indian home appliances market benefits from a growing consumer base with an expanding middle class and rising disposable incomes.

• Growing Consumer Base: Expanding middle class and rising disposable incomes support the India home appliances demand growth.

• Diverse Product Range: Wide variety of products catering to different needs and preferences.

• Strong Distribution Networks: Expansion of both online and offline channels.

• Technological Advancements: Rapid adoption of smart and energy-efficient appliances will likely positively influence the India home appliances demand forecast.

Challenges Faced by Home Appliances Manufacturers in India

• High Competition: Intense rivalry leading to price wars and thin profit margins.

• Dependence on Imports: Significant reliance on imported components and finished goods.

• Price Sensitivity: High sensitivity to price changes among consumers.

• After-Sales Service: Inconsistent after-sales service and support in some regions.

• Economic Uncertainty: Fluctuations in the economy can lower consumer expenditure, which may negatively impact the India home appliances market revenue.

• Supply Chain Disruptions: Vulnerability to global supply chain issues and trade tensions.

• Environmental Regulations: Stringent regulations affecting production processes and costs.

• Technological Obsolescence: Rapid technological changes leading to quick obsolescence of products.

Growth Opportunities in the Indian Home Appliances Sector

• Rural Market Penetration: Untapped potential in rural and semi-urban areas.

• Government Initiatives: Policies promoting manufacturing and energy efficiency in the electrical and electronics sector are expected to support the India home appliances market dynamics and trends.

• Innovation and Product Development: Scope for introducing improved products.

• E-commerce Growth: Growing online sales channels and digital marketing opportunities.

How Consumer Preferences Impact the India Home Appliances Market Dynamics?

1.    Price Sensitivity:

• Budget-Conscious Purchases: Indian consumers are highly price-sensitive, often prioritizing cost over brand when making purchasing decisions, especially in the mid-range and budget segments.

• Value for Money: Consumers look for the best value, seeking a balance between price and features.

2.    Brand Loyalty:

• Established Brands: Many consumers prefer established brands, like Godrej, Samsung, and LG, due to their perceived reliability and quality.

• Local vs. Global Brands: While global brands are popular for their advanced technology, local brands are trusted for their understanding of regional needs and better after-sales service.

3.    Product Features:

• Customization: Consumers prefer appliances that can be tailored to their specific needs.

• Convenience and Innovation: Features that enhance convenience, like remote control options, are highly valued in the home appliances market of India.

4.    Aesthetic Appeal:

• Design and Style: Modern, sleek designs are gaining traction, especially for appliances like TVs.

• Colour Preferences: Availability in various colours to suit individual taste.

5.    Purchasing Channels:

• Online Shopping: The convenience of e-commerce platforms like Amazon and Flipkart is driving online purchases, positively influencing home appliances demand.

• In-Store Experience: Many consumers still prefer to test appliances in physical stores before making a purchase.

6.    After-Sales Service:

• Service and Maintenance: Reliable after-sales service is a critical factor, and easy access to service centers are important considerations.

• Customer Support: Effective and prompt customer support enhances the overall purchasing experience.

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India Home Appliances Industry Segmentations

“India Home Appliances Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Major Appliances
  • Air Conditioners
  • Refrigerators
  • Washing Machines
  • Dishwashing Machines
  • Freezers
  • Ovens
  • Others
• Small Appliances
  • Vacuum Cleaners
  • Grills and Roasters
  • Food Processors
  • Air Purifier
  • Water Purifier
  • Others

Market Breakup by Price Range

• Economy

• Mid-Economy

• Premium

Market Breakup by Distribution Channels

• Supermarkets and Hypermarkets

• Specialty Stores

• Online

• Others

Market Breakup by Region

• North India

• East and Central India

• West India

• South India

India Home Appliances Market Share

Refrigerators are high in demand due to the need to keep food fresh and beverages cool in tropical climate

The tropical climate across numerous regions of the country results in a greater need for refrigeration to extend the shelf life of perishable foods and keep beverages cool, thereby increasing the demand for refrigerators. The rising disposable income of consumers and the availability of the energy efficient and smart refrigerators is boosting the purchase of refrigerators.

As per the India home appliances market analysis, the air conditioners segment, among other major appliances, has witnessed notable growth, driven by factors such as rising levels of heat or temperature, increasing urbanisation, rising disposable incomes, and the need for comfortable living environments. The production of air conditioners in India has been on the rise, with significant year-on-year increases in unit production.

Supermarkets and hypermarkets hold a significant market share as they facilitate proper inspection of home appliances and better decision-making

Supermarkets and hypermarkets like Big Bazaar, Reliance Retail, and Metro Cash & Carry hold a significant home appliances market share in India. Wide range, easy availability, and the benefit of testing appliances before making a purchase are major factors enhancing the growth of supermarkets and hypermarkets. They often have a strong presence in urban areas and are known for their competitive pricing. Meanwhile, online retail channels are gaining significant traction, as they often provide attractive discounts and festive sales.

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Competitive Landscape

India home appliances market players are introducing innovative features, enhancing product offerings, and expanding their presence in tier-2 cities to tap into the growing demand for smart home appliances.

Samsung Electronics Co. Ltd. is a machinery and equipment manufacturing company that was founded in 1995, as a division of the global Samsung brand. The company is headquartered in Gurugram, Haryana and is known for providing technological and electrical devices.

Whirlpool Corporation was founded in 1960 and has its headquarters located in Gurugram, Haryana. It is an appliance manufacturing company that provides its customers with a wide range of kitchen appliances and smart electronic products for their household.

LG Electronics Inc., founded in 1958, has its headquarters in Seoul, South Korea. The company offers consumer electronics, home appliances, mobile devices, and vehicle components. The company consistently introduces cutting-edge technologies and solutions to meet the evolving needs of consumers worldwide.

Voltas Limited, incorporated in 1954, is headquartered in Mumbai, India. Specialising in air conditioning, refrigeration, engineering solutions, and consumer durables, Voltas Limited offers a wide array of products and services.

Other leading companies in the Indian home appliances market include Koninklijke Philips N.V., Electrolux AB, Hitachi Ltd., Panasonic Holdings Corporation, Robert Bosch GmBH, Haier Group Corporation, and Havells India Limited, among others.

Competition in the India Home Appliances Market

The home appliances industry in India is dominated by both domestic and international brands. Domestic companies like Godrej, Bajaj, and Voltas have a strong presence and enjoy brand loyalty among Indian consumers.

On the other hand, global giants such as Samsung, LG, Whirlpool, and Panasonic have established a significant footprint by leveraging their advanced technology and wide range of products.

Competitive Strategies that can help Boost the India Home Appliances Market Value

1.    Product Innovation:

• Smart appliances with IoT and AI capabilities

• Focus on energy-efficient appliances

2.    Pricing Strategies:

• Competitive pricing, including budget, mid-range, and premium

• Discounts and offers

3.    Distribution Channels:

• Retail expansion provides lucrative India home appliances market opportunities

• Online platforms to boost home appliances sales in India

4.    Marketing and Branding:

• Celebrity endorsements positively impact the India home appliances market demand

• Social media engagement

5.    Customer Service and Support:

• After-sales services

• Extended warranties and guarantees to attract more buyers

6.    Customization and Localization:

• Marketing campaigns that resonate with regional audiences

• Developing tailored products to meet specific preferences

7.    Strategic Partnerships and Collaborations:

• Collaboration with technology companies 

• Partnerships with retailers

8.    Sustainability Initiatives:

• Eco-friendly practices

• Green certifications

9.    Market Expansion:

• Targeting rural markets

• Exploring export opportunities

India Home Appliances Market Regional Insight

North India has emerged as a prominent market for home appliances due to increased discretionary income of consumers.

According to the India home appliances industry analysis, Northern India dominates the market share due to the region's large population, changing lifestyles, and increasing disposable incomes. As more people migrate to urban centers in the North, the adoption of time-saving and convenient appliances like refrigerators, washing machines, and air conditioners has increased.

Meanwhile, the presence of major manufacturing hubs and the availability of a skilled workforce in South region have contributed to the India home appliances market growth.

Consumers in the West region are particularly interested in products that offer enhanced features, connectivity, and smart capabilities, such as Wi-Fi-enabled refrigerators and voice-controlled air conditioners. The expansion of distribution networks has further strengthened the home appliances market in the western part of the country.

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India Home Appliances Market Report Snapshots

India Home Appliances Market Size

India Home Appliances Market Share

India Home Appliances Market Growth

India Home Appliances Market Trends

India Home Appliances Market Regional Analysis

India Home Appliances Companies