Indian Consumer Electronics Market - Booming Opportunities

The Indian consumer electronics market has undergone major changes over the past decade. Although the market experienced a setback after the pandemic, its recovery was anticipated and noticed in the past year.

Despite the challenges faced during the Covid-19 pandemic, the market has shown remarkable resilience and continues to perform well. The graph below by Statista (Fig. 1) shows the projected growth until 2027 with historical data on the market’s development since 2014.?

Figure 1: Indian Consumer Electronics Market Growth (Revenue)

The highest performing categories seeing substantial year-on-year growth are the Telephony segment comprising smartphones, feature phones, and landlines and Computing segments, hardware components for electronic devices and equipment paired with these devices (printers, keyboards, speakers), as seen in the graph (Fig 2).

Fig 2: Growth of Consumer Electronics Market (Revenue) in India by Segment - Source: Statista

For years, the Consumer Electronics industry has been dominated by traditional products such as laptops, home appliances, and smartphones. However, in recent years, new product categories such as gaming consoles, smart home devices, and AR/VR sets have been in high demand.

Some of the factors fuelling consumers' insatiable appetite include-

1. Higher disposable income – The average worker's wages have increased, as has their lifestyle, making it easier to afford luxury devices.?
2. Popularity of smart homes – The integration of advanced technology has led to the development of a wide range of smart home devices, including voice-controlled assistants, surveillance devices etc.?
3. Living on credit – The use of credit cards and EMIs has made it easier for people to buy things that may have previously been out of their reach, leading to a shift in consumer behavior and spending patterns.

The Indian consumer electronics market is witnessing a major change, with a growing demand for international brands. This trend is driven by several tech giants expanding their operations in the country and entering the Indian consumer electronics market to manufacture electronic components, making the product accessible and affordable to Indian consumers, and easily exported to other countries by leveraging India’s manufacturing infrastructure and relatively low labor costs.

The Telephony segment continues to lead in the consumer electronics industry (Figure 3). The popularity of the segment is driven by the growing popularity of smartphones as they are one of the most purchased electronic devices.?

Figure 3: Revenue and CAGR projections in India by Industry for 2023 - Source: Statista

The consumer electronics market is a fast-growing, dynamic industry with a wide range of products and technologies serving a diverse set of consumers. As technology evolves, customers are looking for a seamless and integrated user experience across all devices, and more intuitive and personalized interactions with the devices they use. Companies that stay abreast of the latest trends and developments can benefit from the success of the consumer electronics industry.

Want to know more about the Indian consumer electronics market opportunities, access the full report here: https://bit.ly/3S0RNLD