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India Appliances Market Bwc20208

India Appliances Market Bwc20208

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India Appliances Market, By Type {Major Appliances (Refrigerator, Freezer, Dishwasher, Washing Machine, Electric Cooker, Electric Oven), Small Appliances (Vacuum Cleaner, Iron, Toaster, Microwave Oven, Hair Dryer)}, By Sales Channel (Supermarkets & Hypermarkets, Retail, Direct, Online & Others), Trend Analysis, Competitive Market Share & Forecast, 2020-2026

  • Published Date: November 2020
  • Report ID: BWC20208
  • Available Format: PDF
  • Page: 183

Market Segmentation

India Appliances Market Size – Industry Trends & Forecast Report 2026

India appliances market has reached USD 6.13 billion in 2019 and is further projected to reach USD 7.35 billion by 2026, growing at a CAGR of 4.4% during 2020-2026 (forecast period). Growth in the population living in urban areas resulting in increased levels of disposable income that have made these appliances affordable; these factors are expected to drive the market growth. This growth in India's consumer market demand is driven primarily by rising disposable incomes in Indian households and easy access to credit, which induces growing purchasing power. Rising electrification in rural areas, along with the rising influence of social mass media and the popularity of online sales, is also likely to increase the demand.

 

 

Source: BlueWeave Consulting

 

India Appliances Market Overview:

 

Household appliances also known as home or domestic appliances are devices and equipment that have been produced to increase the comfort levels of consumers and provide comfort in household activities such as cooking, cleaning, washing, etc. Home appliance markets offer significant market growth opportunities as they are easy to use, and help improve quality of life. Besides, the market is witnessing new trends in terms of sustainability and energy efficiency, thereby simplifying several household chores while promoting well-being. High-quality materials and aesthetically pleasing designs combined with innovative and diverse functionalities offer avenues for market growth. Design is an important aspect of these white goods. For example, home appliances are now available in a wide choice of colors.

 

India Appliances Market Forecast and Trends

 

Growth Drivers

 

Rise in disposable personal income (DPI)

The rise in replacement sales in the country is expected to drive India's appliance market demand. This may be attributed to a rise in per capita income coupled with rapid urbanization. Home appliance encompasses cooking, home comfort, refrigeration, and laundry appliances. The home comfort segment is expected to witness high growth over the next few years owing to rising customers’ preference for comfort and minimum manual efforts. Economic development in India is anticipated to boost the market demand. Growing population, rapid infrastructure development, and strong economic development are also expected to favorably impact market growth over the forecast period. Industry participants emphasize product development, innovation, and new product introduction to sustain competition.

 

Technological advancements have led to the development of smart appliances

Technological advancements have led to the development of smart appliances, and are expected to drive market growth over the forecast period. The smart home appliances offer advanced features and are more energy-efficient. The rise in consumer disposable income, high living standards, and the need for comfort instigate consumers to upgrade their existing appliances to smarter versions, which is further expected to impel the market demand. Consumers widely purchase home appliances as they provide convenience, reduce manual efforts, and save time. Product innovation, new product development, product differentiation, and integration of numerous value-added features are further expected to catapult Indian appliances market demand over the next few years.

 

Restraints

 

Higher prices of home appliances are hampering the growth of the market

Despite the growing popularity of home appliances across the country, the vendors in the smart home appliances market still face challenges as the customers are still skeptical about the efficacy and durability of products. Owing to this, they dither to purchase smart home appliances, which is dwarfing the prospects in the market. On top of that, the vendors struggle to define the value proposition for the smart home appliances and properly market the products to spread awareness in prospective customers. Furthermore, the price of smart home appliances is very high and can be afforded by only the elite strata of the society which limits the customer-base of the Indian appliances market.

 

Impact of COVID-19 in the industry

 

The electronics devices market including consumer electronics and industrial electronics devices is expected to be impacted significantly by COVID-19 as China is one of the major suppliers for the raw materials (used to manufacture devices) as well as the finished products. The industry is on the brink of facing a reduction in production, disruption in supply, and price fluctuations. While this can vastly encourage local manufacturers to step up and address the growing demand, the scarcity of raw material can still pose a challenge to this industry. The sales of prominent electronic companies are expected to be affected shortly. Thus, the India appliances market will face a severe impact due to disruption in the supply chain & lack of demand from the consumers.

India Appliances Market: By Type

 

Based on type, the India appliances market is categorized into major appliances (refrigerator, freezer, dishwasher, washing machine, electric cooker, an electric oven), and small appliances (vacuum cleaner, iron, toaster, microwave oven, and hair dryers). Amidst this, the refrigerator segment accounted highest market share in 2019, as a refrigerator is considered a safe, easy, and convenient way to preserve food and food products. Rising disposable income, availability of smart and energy-efficient refrigerator units, and widening base of nuclear families are leading to an upsurge in demand for refrigerators for household applications.

 

India Appliances Market: By Sales Channel

 

Based on the sales channel, the India appliances market is categorized into supermarkets & hypermarkets, retail, direct, online & others. Amidst this category, the supermarkets & hypermarkets segment accounted for a potential share in the market. A supermarket offers a variety of options to the customers along with attractive offers & discounts. Meanwhile, attractive discounts & easy availability is boosting segmental growth. An increase in the sales of refrigerators, washing machines, and air conditioners is being witnessed through this channel. Apart from changing lifestyles and working styles, urbanization has led to growth in this sector, which, in turn, has led to a change in consumers' buying behavior.