Reports Description
India Consumer Electronics Market was valued at USD 80.8 Billion in 2024 and is expected to reach USD 149.1 Billion by 2033, at a CAGR of 6.10% during the forecast period 2024 – 2033.
Consumer electronics are electronic (analog or digital) equipment and devices intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Consumer electronics (CE) refers to devices used for communication, entertainment, or information purposes. Over the years, manufacturers developed new devices and reinvented older ones.
India Consumer Electronics Market: Growth Factors
Indian Consumer Electronics industry is mainly driven by various factors such as increasing disposable income, increasing youth population, growing internet penetration, growing demand for advanced computing devices among the working population, evolving consumer preferences, and technological advancements.
Indian Consumer Electronics Industry dynamics are shifting rapidly. The quality and affordability of consumer electronic gadgets have been key drivers of this rapid change. With the growing economy, people’s disposable income is also increasing in India, which fuels the demand for consumer electronics.
For instance, India’s GDP is expected to more than double over the next decade, reaching USD 7.5 trillion with an expected annual growth of 6.6%. At the same time, per-capita income is expected to double, and the country is projected to have five times as many high-income households by 2031, which in turn is expected to increase the purchasing power parity, thereby driving demand for consumer goods.
Growing demand for quality consumer electronics products is expected to drive the market growth during the forecast period. In the age of the Internet and hyper connected world, consumers have become more cautious about the worth of electronic gadgets they purchase.
With the hi-tech revolution, consumers are looking for devices that offer superior performance, durability, and reliability. According to a survey conducted by Custom Market Insights, 95% of consumers read online reviews before they shop, and 58% say they would pay more for the products of a brand with good reviews. This indicates that product quality is key when making a purchase decision.
Furthermore, the right product price balance has also played an important role in driving this transformation. Consumer goods companies understand the importance of offering value for money to consumers by offering feature-rich devices at competitive rates. Thus, above mentioned factors are expected to drive the market growth during the forecast period.
Furthermore, an increasing internet penetration and growing integration of various emerging technologies in consumer electronics devices such as Artificial Intelligence, Internet of Things, Augmented Reality, Virtual Reality, Remote Access, advancements in microcontrollers and advanced personification technologies are expected to increase the adoption of the consumer electronics devices among working and young population, thereby driving the market growth.
India Consumer Electronics Market: Restraints
Various factors such as less adaption and utilization in rural areas, semiconductors and other electronics component shortage in India, overdependence on imports, fluctuation in raw material prices, stringent government regulations about data privacy, growing counterfeiting of consumer electronics, higher prices of consumer electronics are restraining the market growth during the forecast period.
However, by applying the right pricing strategies, increasing domestic semiconductor and other electronics component production, and effectively coping with government regulations, consumer electronics companies can overcome the above-mentioned challenges and increase market share in the Indian market.
India Consumer Electronics Market: Opportunities
An increasing penetration of E-commerce platforms in urban, semi-urban and rural areas is expected to create lucrative opportunities for market growth during the forecast period. The growth of e-commerce platforms such as Flipkart, amazon, and respective company’s websites has made consumer electronics devices easily available to a broader audience in the Indian market.
The growing popularity of online purchasing due to alluring discount offers and easy and instalment payment options is boosting the sales of consumer electronics devices across the country, which in turn creates lucrative opportunities for the market during the forecast period.
The IT industry in India is thriving, and there is no shortage of highly talented and skilled IT forces in India. From engineers and software experts to technicians, India’s skilled IT labour has greatly contributed to developing consumer electronics manufacturing.
Furthermore, supportive government policies and initiatives such as the Production Linked Incentive Scheme and The ‘Make in India’ initiative and growing subsidies for local manufacturing are attracting global players in the Indian Market.
Recently, the Ministry of Electronic and Information Technology proposed incentives for local smartphone manufacturers in the country. Thus, such supportive government policies and initiatives are expected to create lucrative opportunities for the consumer electronics market during the forecast period.
India Consumer Electronics Market: Segmentation Analysis
India Consumer Electronics market is segmented by product, by price, by distribution channel and by region.
By product, the smartphone segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period. Smartphones are used by consumers and as part of a person’s business or work. India currently has 931 Mn+ smartphone users and this number is expected to reach 1.1 Bn+ by 2025.
Increasing disposable income, the development of telecom infrastructure, and increasing budget friendly smartphones are propelling the demand for smartphones in India. Smartphone combines the functionality of a traditional mobile phone with advanced computing capabilities. Smartphone has many advanced features such as an operating system (OS), web browsing and the ability to run software applications.
The refrigerator segment is expected to grow at significant growth rates during the forecast period owing to the growing usage of refrigerators in restaurants, cafes and households. As per the survey conducted by Custom Market Insights, Indian consumers are replacing their existing and old refrigerators with new ones.
In addition to this trend, refrigerator-selling retailers are adopting competitive strategies such as teaming up with financial institutes to provide easy financing options to sell their products. Such trends are expected to boost the market growth of this segment during the forecast period.
By price, India consumer electronics market is segmented into premium and mass price range. Among these, the Mass price segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period. An increasing middle class population and growing demand for budget friendly devices are some of the factors propelling the market growth of this segment.
By Distribution channel, the market is segmented into Online and Offline. Among all these segments, the Offline segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period. Offline segment includes OEM Stores, Retails, Speciality Stores and Others. An increasing presence of these channels across India is mainly propelling the growth of this segment.
However, the Online segment is expected to grow at the highest CAGR during the forecast period. The online segment includes third party websites and company owned websites. Increasing internet penetration and alluring discounts offered by E-commerce platforms are propelling the market growth of this segment during the forecast period.