Remember the 90s in India? People’s simple pleasures in life were the tunes on the radio and the smell of morning toast. Today, the landscape has changed dramatically. We have gadgets like ovens, air conditioners, air purifiers, and coffee machines that have become our everyday pals.
The home appliances sector in India is booming, growing faster than ever, with experts predicting a CAGR of over 5.5% from 2024 – 2029. Today, these gadgets are more than just machines; they are a big part of what makes our houses feel like home.
Let us know more about the Indian home appliances industry, which is not just changing; it’s making our everyday life a whole lot better.
What is the home appliances sector in India?
When we say “home appliances,” we refer to machines we use at home, which make doing household chores, like cooking and cleaning, easier. They are also referred to as domestic or electric appliances.
The home appliances sector in India is categorised into three main segments:
- First up, there are “major appliances,” also known as “white goods.” Examples include freezers, refrigerators, washing machines, dishwashers, cooking ranges, etc.
- Then we have “small appliances.” Examples include kitchen gadgets, vacuum cleaners, irons, toasters, hair dryers, etc.
- The last group is “distribution channels.” Here, we talk about how the market is distributed. This process includes online platforms, multi-brand and exclusive stores, and other retail outlets.
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Industry overview
In 2023, India’s home appliances industry generated $75 billion in revenue and is estimated to experience continued expansion going forward. Projections indicate the sector will increase at a CAGR of 5.5% over 2024 – 2029.
The Indian home appliance industry has been experiencing significant development, with major and minor appliances contributing to its expansion.
In 2022, the majority of categories within the household appliance sector experienced an increase in retail volume and value. There remains a significant potential market for appliances such as washing machines, air conditioners, and refrigerators.
The market size for washing machines, refrigerators and air conditioners in India as of 2021 is around $8.43 billion, $3.82 billion, and $3.84 billion, respectively.
Further, the market for refrigerators is expected to grow from 145 lakh units in 2019 to 275 lakh units by 2025, and for air conditioners, it is expected to expand from 65 lakh units in 2019 to 165 lakh units by 2025.
Overall, the white goods market is anticipated to surpass $21 billion by 2025, growing at a CAGR of 11%.
The FDI or foreign direct investment in this sector has almost doubled to $481 million by June 2022, a significant increase from $198 million in 2021.
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Factors driving home appliances sector in India
Consumer habits have shifted noticeably in recent times. There is a new craving for appliances that do more than the basics and upgrade their lifestyle.
During the pandemic-induced lockdown, cooking and cleaning activities saw a rise among people at home. Even after the lockdown is over, this trend sticks and the demand for these products is not dwindling.
This upward trend can be attributed to several factors like urbanisation, premiumisation, and innovation stand out.
Urbanisation
As household incomes rise across India, more consumers can invest in products that enhance the quality of life at home. Further, recent shifts in India’s economy and transitions in consumers’ daily routines have resulted in more individuals joining the workforce, an increase in nuclear family structures and single individuals living alone.
Consequently, these emerging households are increasingly seeking accessibility and convenience, driving demand for products that significantly reduce the time and effort required for daily tasks.
Premiumisation
Premiumisation is becoming a norm across various industries, where consumers are inclined towards ‘premium’ brands or ‘value-added’ products. With the advent of 5G technology, there have been substantial advancements in AI capabilities and the IoT ecosystem in the country.
Because of this, smart homes and appliances controlled via smartphones have become quite popular. Devices like smart air fryers, air purifiers, and vacuum cleaners are loved and bought, especially by the millennial generation.
Innovation
Innovation stands as a pivotal factor in propelling growth. With the increasing trends of premiumisation and urbanisation, brands are intensifying their focus on product innovation.
Consequently, consumers are showing a greater inclination to purchase home appliances that augment their ability to multitask. This has, in turn, accelerated the process of innovation, leading to the development of new offerings and the reinvention of existing gadgets.
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Top home appliances brands in India
Here is a list of domestic listed home appliances companies in India:
| Company | Market Cap (₹ crores) | Price |
| Crompton Greaves Consumer Electrical Ltd. | 19,122.47 | 299.10 |
| Whirlpool of India. Ltd. | 15,858.98 | 1,233.30 |
| Bajaj Electricals Ltd. | 11,500.60 | 997.50 |
| TTK Prestige Ltd. | 10,243.58 | 736.45 |
| Electronics Mart India Ltd. | 8,233.62 | 211.50 |
Bottomline
From the nostalgic tunes of the radio and the aroma of morning toast in the 90s to today’s smart appliances, India’s home appliances sector has transformed our homes into hubs of convenience and comfort.
This industry, which is expected to grow at a CAGR of 5.5% from 2024 – 2029, is not just changing; it’s enhancing our everyday life. With the rise of urbanisation, premiumisation, and innovation, our homes are becoming smarter, our chores easier, and our lives better.
Truly, the Indian home appliances industry is turning houses into homes, one gadget at a time.
