Consumer Electronics Market in India 2023-2028

Consumer Electronics Market in India 2023-2028

Market insights:

India has a large and growing consumer base for electronic devices, driven by factors such as increasing disposable income, urbanization, and a tech-savvy younger population. The smartphone market in India is particularly robust, with a high demand for affordable smartphones. Several international and domestic brands compete in this space, offering various features and price points. The television market is evolving, with a shift towards larger screen sizes, smart features, and higher resolution displays. Smart TVs with internet connectivity and streaming capabilities have gained popularity. The demand for home appliances, including refrigerators, washing machines, and air conditioners, continues to rise as living standards improve. Energy efficiency and smart features are key considerations for consumers. The rise of e-commerce platforms has significantly impacted the consumer electronics market. Online sales have become a preferred channel for purchasing electronic devices, offering a wide range of options and convenient delivery. The Consumer Electronics market in India is expected to reach INR 8,394.35 Bn by 2028, expanding at a CAGR of ~6.15% during the 2023 – 2028 period.

Segment insights:

The industry encompasses various segments such as smartphones, PCs, laptops, tablets, televisions, air conditioners, refrigerators, and washing machines. In 2022, the smartphone segment dominated the Indian Consumer Electronics Market with a market share of 52.42%, projected to reach approximately 52.55% by 2028. Conversely, the television market share is experiencing a decline as Indian users shift towards smartphones, tablets, or laptops, accounting for 19.26% in 2022 and anticipated to decrease to around 19.17% by 2028. Washing machine sales have witnessed growth in recent years due to increased consumer concern.

Market Influencers:



Drivers:

Increased demand for mid-range smartphones, laptops, and technology due to affordability concerns. Improved infrastructure, connectivity, and the expansion of e-commerce into rural markets have made electronic goods more accessible. Buy-now-pay-later and no-cost EMIs play a significant role in purchasing decisions. Flexible payment methods are crucial for the growth of India's retail industry. The number of internet users in India has increased, reaching 692 million in January 2023. Increasing smartphone demand in rural areas, driven by government initiatives to promote a digital economy. The younger population prefers smartphones for their high-end features.

Challenges:

Consumers still value physical stores for analysing and comparing products, especially in exclusive brand outlets (EBO) or multi-brand outlets (MBO). Live demonstrations and in-person experiences remain crucial for the purchase decision. Despite advanced features in smart devices, battery technology lags. Dissatisfaction with smartphone battery life is increasing, particularly with the growing penetration of 4G and 5G-enabled devices in India. Appliances like air conditioners, refrigerators, and washing machines consume significant electricity. The rising cost of electricity in India is leading consumers to reconsider purchasing these energy-intensive consumer goods.

Competitive insights:

E-commerce platforms, such as Flipkart and Amazon, play a crucial role in the consumer electronics market. These platforms offer a wide range of products and frequently host exclusive launches, contributing to the competitive landscape. Consumer electronics brands in India offer diverse product portfolios, including refrigerators, washing machines, air conditioners, and audio devices. Brands compete not only on features but also on energy efficiency and eco-friendly initiatives.