While the consumer durable and electronics industry posted a double digit growth in 2024, it is poised for remarkable growth in 2025, driven by adoption of premium, value added, feature-led products and will be fueled by policies like the Production-Linked Incentive (PLI) scheme on the supply side. Per industry leaders, the segment has long been subdued and it is now set for a turnaround. Manish Sharma, Chairman, Panasonic Life Solutions India & SA, said, “India’s consumer electronics sector is poised for remarkable growth, with market demand projected to reach $21.18 billion by 2025. This growth will be driven due to adoption of products with higher energy efficiency and will be fueled by policies like the Production-Linked Incentive (PLI) scheme on the supply side. Other factors for expansion include increasing digital adoption, a growing middle class with higher disposable income and increasing urbanization, which is driving the premiumization trend and demand for advanced and connected devices.”
According to a report by IBEF, by 2025, India’s consumer electronics and appliances sector is predicted to be the fifth-largest in the world and the industry players are voicing this growth in their outlook for the year. Kamal Nandi, Business Head and EVP – Appliances Business, Godrej Enterprises Group, said, “Looking ahead, we expect the appliances industry to grow by approximately 12-15 per cent in 2025, with Godrej targeting a growth rate of more than 30 per cent, driven by cooling appliances, premium segments, larger capacity segment coupled with intelligent offerings which are expected to continue driving demand.” He also credited the growth to credit-scheme-backed sales such as no-cost or low-cost EMIs, longer-tenure loans, zero-down payment options, cashbacks, etc. “Consumers find it easy to upgrade to higher capacities and better features with flexible finance options. Finance contributes to close to 40 per cent of the total industry sales,” Kamal Nandi added.
NS Satish, President, Haier Appliances India, said, “In 2025, Haier India aims to increase its revenue to Rs 11,500 crore, with a clear focus on premiumization, product innovations and manufacturing expansions to meet the dynamic needs of Indian consumers.” Going forward, the company is planning to expand its market share and revenue. “The focus will remain on increasing brand presence in emerging regions while strengthening our foothold in metros. In terms of products, we are betting on a combination of feature-rich, smart, and energy-efficient home appliances, including refrigerators, washing machines, and air conditioners,” NS Satish said.
Kaleeswaran Arunachalam, Group CFO & Head of Strategy, Crompton Greaves Consumer Electricals Limited (CGCEL), said, “For 2025, we are optimistic about robust growth across rural and urban markets. The upcoming year will see exciting launches across categories led by fans and then in solar pumps, lighting and kitchen appliances, including chimneys and hobs, as we continue to expand our premium portfolio.” The company is also planning to enhance distribution through an omni-channel approach, bolstered by e-commerce partnerships and an expanded dealer network.
Wonderchef, meanwhile, will be launching smart cooktops and chimneys, a new version of Wonderchef app which will be relevant to the audience and divide the range of healthy, nontoxic cookware. The prices, it added, will range from Rs 1000 to Rs 2000 for cookware and from Rs 5000 to Rs 60000 for appliances. Ravi Saxena, CEO and MD, Wonderchef, said, “Wonderchef is known for its smart appliances, like Chefmagic -Kitchen robot, Nutripot—our smart pressure cooker, automatic soup maker and range of coffee machines, besides our iconic Nutriblend and high quality cookware. All these categories are growth drivers for us. We moved towards further tech integration in kitchen appliances and we certainly want to ride that wave.”
Parag Kulkarni, Senior Vice President – International and President, A. O. Smith India, said, “We are anticipating good growth this year and expect premium products to continue leading demand as consumers seek out products that add value to their lifestyles. The long-term demand and consumption is likely to stay steady. With a large percentage of the population yet to completely embrace consumer durables, there is an opportunity in this untapped market. Looking ahead in 2025, the industry will likely continue to evolve with smarter, more energy-efficient products and a deeper focus on sustainability.”
Going ahead the premium way
The industry, which contributes 0.6 per cent of the GDP, is witnessing a shift towards premiumisation, increasing the average sale price (ASP) which is driven by rising income, and young demography with changing preferences. Saif Khan, MD & CEO, BSH Home Appliances, said, “The growing demand for premium appliances—such as high-capacity washing machines, advanced dishwasher, built-in cooking ranges, and premium refrigerators—is driving positive sales momentum in the consumer durables sector, as consumers seek superior quality, innovation, and enhanced lifestyle experiences. With continued innovation and leadership in the premium built-in appliances category, we are confident that this upward trend will fuel double-digit growth in 2025.”
Per industry leaders, the growing demand for premium, tech-enabled lifestyle products is no longer confined to metro cities; it is rapidly gaining traction in tier 2 and 3 towns, reflecting evolving consumer aspirations across the nation. Ravindra Singh Negi, Managing Director and Chief Executive Officer, Orient Electric, said, “To cater to these changing needs, we continuously invest in consumer insights and R&D , enabling us to create thoughtfully designed products that meet the evolving needs of our consumers. In our lighting segment, we are focusing on premiumisation by introducing value-added products in the consumer luminaires segment, such as COB lights, IoT based lighting solutions. Similarly, for our appliances portfolio, the focus remains steadfast on delivering premium products that seamlessly combine technology and thoughtful designs. These categories are also gaining significant traction on e-commerce platforms. In the fans category, we continue to strengthen our portfolio of premium design led and energy-efficient BLDC fans along with IoT features.”
In terms of key growth drivers, the industry leaders and experts opined that premium, feature-led products, with cutting edge technology and sustainability as central themes, will remain key growth drivers in the year 2024. Consumers are also showing an inclination towards products manufactured locally and brands are working towards fulfilling the demands in this ‘competitive’ industry.
Daewoo India too acknowledged the trend as the driving force behind growth in the past year and the year ahead. HS Bhatia, MD, Daewoo India, said, “At Daewoo India, we’ve been at the forefront of this trend, introducing cutting-edge products that seamlessly blend technology, style, and sustainability. As we look to the future, I’m optimistic about the industry’s prospects, driven by favorable demographics, rising disposable incomes, and the government’s initiatives to boost manufacturing and consumption.”
According to IBEF, during (April-June) 2024, electronics exports reach $8.44 billion and India aims to achieve electronics manufacturing worth $300 billion and electronics exports of $120 billion by FY26. Government initiatives such as the National Policy on Electronics and the PLI have been instrumental in fostering local manufacturing. Manish Sharma added, “The PLI scheme, through its targeted incentives, has catalysed large-scale production, positioning India as a global hub for consumer electronics. The sector is further strengthened by increasing investments in local manufacturing and supply chains.” By 2025, he added, India’s consumer electronics industry is expected to make significant contributions to the country’s GDP and job creation.
How was 2024 for the industry?
For industry majors, 2024 was a ‘transformative year’ marked by a double-digit revenue growth. NS Satish from Haier Appliances India, said, “In 2024, Haier India experienced a stellar year, with revenue growth projected to surpass Rs 8,700 crore, marking a 35 per cent increase. The growth was driven by strong sales during the summer and festival seasons, making India one of Haier’s fastest-growing markets globally.”
Kamal Nandi of Godrej Enterprises Group, also stated that the appliances industry witnessed a strong growth in 2024, driven by unprecedented heat level, favourable market conditions and evolving consumer preferences. “The industry displayed a growth of 19.3 per cent. ACs dominated the year with 35.3 per cent growth. At Godrej Enterprises Group, we witnessed an impressive 52 per cent growth in appliances compared to the previous year. While premium categories continued to show good pull, the mass market also demonstrated healthy traction across geographies.”
The demand has been strong across both urban and rural markets, but metros and tier-II cities have outpaced growth in rural areas, showing a shift towards more aspirational buying in smaller towns. Ravi Saxena from Wonderchef, said, “Year 2024 was yet another blockbuster year for Wonderchef, so in continuation we have been the fastest growing brand of all the established players in the industry, thanks to our continuous innovation pipeline, and omnichannel distribution network. We saw more energy in tier 2 and tier 3 towns, however, in the case of Wonderchef, it is our equal distribution in smaller towns. We also saw growth across retail, e-commerce and quick commerce.”
Jitendra Agrawal, CEO – Lighting and Consumer Durables Business, Surya Roshni, said, “In 2024, we witnessed reasonably decent demand, primarily driven by semi-urban and rural India, due to increase in their disposable incomes and in general changing consumer preferences. There is a definite shift towards products that are aesthetically pleasing and energy-efficient. We also found that consumers are increasingly influenced by information available through social media, e-commerce, apart from traditional awareness channels. Looking ahead in 2025, we expect these trends to continue as consumer aspirations grow.”
A price correction in picture?
Meanwhile, the consumer durable industry is continuously monitoring market conditions and input prices, ensuring stable pricing mechanisms despite volatile commodity prices. NS Satish said, “Price changes will be managed strategically to remain competitive while delivering value.”
Ravi Saxena added, “Our prices are stable but will be increased in case of rise in commodity prices. Typically, the cost of raw materials has risen by more than 3 per cent.”