Consumer Durable Sector
Consumer durables are products that are used for domestic use and have an extended lifespan. Goods and appliances such as Televisions, Washing machines, Air conditioners, Kitchen appliances, and Cell phones fall into this category. The consumer durable business in Indiaβs projected growth of CAGR 4.7%by 2027 reaching US$ 77million. {6}
The Consumer durables industry in India is segmented as;
β’ Brown Goods - Consumer electronics (TV, DVD players, stereos)
β’ White Goods - Consumer household appliances( refrigerators, washing machine, dishwasher , dryers, etc.) {6}
The white goods market is estimated to cross $21 Bn in 2025 expanding at a CAGR of 11%. Domestic manufacturing contributes nearly $4.6 Bn on average to this industry.{7}
Market size
β’ Indian appliance and consumer electronics Industry market size is approximately Rs. 1.48 lakh crore (US$ 17.93 billion) by 2025. By 2025, Indiaβs consumer electronics and appliances industry is predicted to be the 5th largest in the world.
β’ India's consumer electronics and home appliances market is set to grow by US$ 2.3 billion between 2022 and 2027, registering a CAGR of 1.31%. {6}
Exhibit 1: The Indian consumer durables ODM market in FY23-FY28E growing with a CAGR of 21%.
Contribution of the Consumer Durable Sector in the Indian GDP:
β’ India's consumer durables sector, currently contributing 0.6% to the nation's GDP, which is projected to grow at a compound annual growth rate (CAGR) of 11%, reaching US$ 35.73 billion (Rs. 3 lakh crore) by 2029.
β’ The sector's GDP contribution is expected to increase by 1.5 times, aiming to become the fourth-largest market for consumer durables by 2027 and the global leader in this industry by 2030 while also creating 500,000 new jobs.{8}
Indian Air Conditioner Market: {9}
β’ The global air conditioner market size & share was valued at USD 143.86 billion in 2023 and is expected to grow at a CAGR of 6.10% during the forecast period.
β’ The market's anticipated growth can be credited to robust expansion in the residential sector with home sales reaching Rs. 3.47 lakh crore ($42 billion), a 48% year-on-year increase and a 36% volume increase. {10} Which represents the primary end-user of air conditioners. Improved standards of living among Indian consumers have significantly increased the demand for air conditioners in residential settings. Additionally, the commercial sector, another key end-user, has experienced substantial growth over the past decade.
β’ Over the last five decades, India has experienced more than 700 heatwaves, with experts suggesting that this summer's extreme and persistent heat ranks among the most severe. According to the Council on Energy Environment and Water (CEEW), 97% of Indian households have electricity, and 93% rely on fans for comfort. However, the year 2024 has seen an unprecedented surge in India's air conditioning market. Sales of air conditioners are expected to increase by 60% from March to July, compared to the typical 25- 30% growth in previous years.
Exhibit 2: Capitalizing on 14.8% CAGR growth in the Indian air conditioner market.[11}
Growth Prospects in the Global Commercial Refrigeration Market {12}
β’ The global commercial refrigeration market, valued at USD 45.5 billion in 2023, is expected to grow at a CAGR of 5.8%, reaching USD 60.5 billion by 2028.
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