Retail India News: India’s Appliance Market on Track for 12-15 Pc Growth in 2025 Amid Strong Demand

The appliances and consumer electronics (ACE) industry is poised for robust growth in 2025, expecting a 10-15 percent increase driven by premiumization, rising incomes, and a shift towards energy-efficient, AI-enabled, and connected products. The growing preference for global-quality and innovative features underscores this trend, according to industry leaders.

The year 2024 marked a transformative phase for the sector, demonstrating resilience amid challenges like rising raw material costs, supply chain disruptions, and price hikes. The industry, which contributes 0.6 percent to India’s GDP, embraced technological advancements and innovation to sustain growth.

Kamal Nandi, Business Head and EVP of Godrej Appliances highlighted the sector’s trajectory, saying, “Looking ahead, we expect the appliances industry to grow approximately 12-15 percent in 2025.” He attributed this growth to rising incomes, urbanization, real estate expansion, and the penetration of smaller markets, including tier-III cities.

Manish Sharma, Chairman of Panasonic Life Solutions India, noted that the adoption of higher energy efficiency, premium appliances, and policies like the production-linked incentive (PLI) scheme will propel the sector. “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 said.

The ACE industry is also focusing on localization, research, and sustainable innovation. CEAMA President Sunil Vachani praised initiatives like the PLI scheme and Make in India, stating, “These have been instrumental in enhancing domestic manufacturing and attracting global investments.” Vachani projected 12-14 percent value-based growth in 2024, emphasizing strong demand for energy-efficient products.

The room air conditioner (RAC) segment saw 30 percent growth in 2024, fueled by rising temperatures and greater market penetration in tier I and tier II cities, said Vachani. Voltas, a Tata Group company, achieved record-breaking sales of over two million units, making 2024 a “landmark year,” according to its CEO Pradeep Bakshi. “Looking ahead to 2025, we anticipate significant growth,” Bakshi added, highlighting AI and IoT integration as key trends.

Premiumization is also driving the industry, raising the average selling price (ASP) of products like air conditioners, washing machines, refrigerators, and LED TVs. Haier Appliances India President N.S. Satish predicted double-digit growth in 2025, emphasizing the importance of differentiated products and strong after-sales service.

BSH Home Appliances CEO Saif Khan highlighted increasing demand for premium appliances like advanced dishwashers, built-in cooking ranges, and high-capacity washing machines. “Consumers are seeking superior quality, innovation, and enhanced lifestyle experiences,” Khan said.

Dixon Technologies (India), a leading contract manufacturer, called 2024 a “transformative” year, with India’s electronics manufacturing sector surpassing $120 billion in value and exports growing 40 percent year-on-year. Executive Chairman Sunil Vachani remarked, “These achievements underscore India’s growing reputation as a trusted destination for high-quality manufacturing. The journey ahead is promising.”

Looking further ahead, Manish Sharma projected a compound annual growth rate (CAGR) of 11 percent for India’s consumer electronics sector, reaching $35.73 billion by 2029 and creating five lakh jobs. He added, “Indian RAC manufacturing could expand to Rs 100,000 crore by 2029, with exports contributing 35 percent of total manufacturing.”

With strong fundamentals, evolving consumer preferences, and supportive government initiatives, the ACE industry is on track to scale new heights in 2025 and beyond.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}