Consumer Electronics Market in India

Consumer electronics caters to a range of appliances that are commonly used in households for daily needs.

The growth of India’s consumer electronics market is driven by rising demand from households, changing lifestyles, easier access to credit, and increasing disposable incomes. Initiatives like Make in India, the Electronic Development Fund Policy, and the Production Linked Incentive Scheme have boosted local manufacturing by rationalizing duties and offering subsidies, in turn attracting global players. High demand for advanced electronics, such as computers, mobile phones, and TVs, coupled with quality and affordability, has fueled this expansion.

Market Segmentation:

Mobile phone production accounts for a significant portion of India's consumer electronics manufacturing, making 52% of the total in 2023.

According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone shipments in India totaled 46 million units in Q3 of 2024, marking a 5.6% year-over-year increase. Leading brands like Apple and Samsung play crucial roles in driving exports, especially within the smartphone segment. The Indian smartphone market continues to experience robust growth, driven by attractive discounts, flexible financing options, extended warranties, and cashbacks and bank-specific that are available across online and offline channels. The introduction of many new 5G-enabled smartphones further boosted demand, underscoring the growing consumer preference for advanced connectivity.

Market drivers:

Improved availability and affordability of electronic devices, coupled with enhanced infrastructure and connectivity, have made these products more accessible for rural consumers. Additionally, changing lifestyles and preferences, coupled with rising disposable incomes in rural areas, have led to an increased demand for consumer electronics.

The expansion of e-commerce services into rural markets has further facilitated the purchase of electronic goods, contributing to the overall surge in sales in the rural sector. Further, there has been increasing demand for smartphones that have improved network connectivity in rural areas, given that the Indian government continues to focus on transitioning to a digital economy where different types of transactions can be carried out using smartphones.

Key deterrents to the growth of the market:

Air conditioners, refrigerators, and washing machines consume a lot of electricity because they have motors and other parts that need them to function. In India, the cost of electricity has increased, leading to higher electricity bills. As a result, consumers are opting for electronics that can operate with renewable energy sources such as solar and wind power.

Market trends:

Miniaturization refers to the process of making devices and components smaller, lighter, and more efficient while retaining or improving their functionality. The demand for portability and convenience has prompted manufacturers to merge various devices and develop compact components suitable for mechanical, optical, and electronic products.