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India Consumer Electronics Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The consumer electronics products market in India was valued at USD 105.2 billion in 2020 and is projected to expand at a CAGR of 8.3% from 2021 to 2028. The growth of the market is mainly attributed to the rising disposable incomes of the Indian population, increasing demand for consumer electronics products, and the growing trend of online shopping. The market is further driven by the emergence of the e-commerce industry in India, which is helping to make consumer electronics products more accessible to the masses. Additionally, the introduction of innovative products, such as virtual reality headsets, wearables, and smart homes, is expected to provide an impetus to the growth of the market during the forecast period.
In the current pandemic situation, the demand for consumer electronics products has increased significantly as people are staying at home for longer periods of time. The government of India has allowed essential services such as e-commerce and retail outlets to remain open, which has resulted in an increase in online sales of consumer electronics products. Furthermore, the reduction in prices of some products due to low manufacturing costs and the availability of attractive financing options are expected to drive the growth of the market.
Moreover, the introduction of artificial intelligence (AI) and IoT-enabled devices is further accelerating the demand for consumer electronics products to provide better connectivity and convenience. For instance, in December 2020, Reliance Jio launched Jio IoT, a cloud-based IoT platform, to provide an integrated platform for device manufacturers, application developers, and enterprises. Furthermore, the government of India has launched the Digital India Initiative to promote the use of technology in the country and to bridge the digital divide between urban and rural areas. This is expected to further drive the growth of the India consumer electronics market in the coming years.
The market is segmented on the basis of product type, end-user, and distribution channel. On the basis of product type, the market is divided into televisions, smartphones, computers and tablets, and audio and video equipment. On the basis of end-user, the market is segmented into residential, commercial, and industrial. By distribution channel, the market is segmented into online, offline, and others. The online segment is expected to witness the highest growth during the forecast period, owing to the increasing penetration of the internet and the growing trend of online shopping in the country.
Product Insights
The mobile phones segment held the leading position in the India consumer electronics market and is projected to account for around 49.8% of the market share in 2022. According to an article published by the Indian Brand Equity Foundation (IBEF) in February 2020, the mobile phone market in India was valued at around US$ 31 billion in the financial year 2019. Growing demand for smartphones among the Indian population owing to their affordability, availability of various applications, and decreasing prices are some of the major factors driving the growth of the segment. Moreover, the presence of several e-commerce platforms and the emergence of popular online shopping sites have also been driving the growth of the segment.
Furthermore, the digital cameras segment is estimated to grow at a CAGR of 14.5% over the forecast period. Increasing demand for digital cameras among youngsters for capturing pictures, rapid digitalization, and the emergence of numerous photo-sharing sites and applications are some of the key factors driving the segment. Moreover, increasing availability of digital cameras with advanced features such as High Dynamic Range (HDR) and Auto-focus are further propelling the growth of the segment.
Distribution Channel Insights
The offline segment is anticipated to capture the major share of the market in 2022. The growth of the segment is mainly attributed to the presence of a large number of consumer electronics stores across the country. In addition, the availability of a wide range of products and attractive discounts offered by these stores attract customers to purchase consumer electronics products from physical stores. Furthermore, the presence of experienced professionals who can provide customers with personalized advice on their purchase decisions is also expected to drive the growth of the segment.
The online segment is anticipated to expand at the highest CAGR of 23.2% over the forecast period. The growth of the segment is mainly attributed to the rising adoption of digitalization and the increasing penetration of internet & mobile phones. In addition, the presence of several e-commerce websites and apps offering consumer electronics products at competitive prices and attractive discounts is also expected to drive the growth of the segment. Furthermore, the availability of online payment options and cash on delivery services has created a favorable environment for online purchases.
Type Insights
The consumer electronics products market in India is mainly driven by the increasing penetration of smartphones and other consumer electronic products such as laptops and tablets. The demand for consumer electronic products in India is driven by rising disposable incomes, improved lifestyle, and the growing popularity of e-commerce channels.
The market is segmented into TVs, audio systems, air conditioners, washing machines, refrigerators, mobile phones, and other consumer electronics. The TVs segment is estimated to dominate the Indian consumer electronics market, with a share of more than 30% in 2022. The increasing disposable incomes and the availability of a wide range of products have led to increased demand for TVs in India.
The mobile phone segment is expected to witness the highest growth over the forecast period as the demand for smartphones is increasing due to the introduction of 5G technology and the growing popularity of e-commerce channels. The increasing trend of online shopping and the availability of a wide range of smartphones at competitive prices are expected to propel the demand for smartphones in India.
The audio systems segment is estimated to witness the second-highest growth over the forecast period due to the increasing demand for wireless audio systems, such as Bluetooth speakers, Wi-Fi speakers, and home audio systems. The increasing trend of home automation and the availability of a wide range of audio systems are expected to boost the demand for audio systems in India.
Regional Insights
India held the largest revenue share in the Asia Pacific region and accounted for over 50.3% in 2022. The growing adoption of consumer electronics products in the country is a major factor driving the growth of the market. Rapid urbanization has resulted in the emergence of a large middle-class population in India, which is driving the growth of the consumer electronics industry. Additionally, increasing disposable incomes and the presence of a large number of global players are further expected to drive the market growth. Furthermore, the presence of a large number of online retailers in the country is also contributing to the growth of the market. For instance, Amazon India and Flipkart are the major e-commerce players in the country.
In China, the consumer electronics industry is expected to witness a significant growth in the coming years owing to the increasing demand from the online retail sector. In China, the consumer electronics industry is mainly driven by the rising demand for smartphones and other consumer electronics products. The availability of consumer electronics products at discounted prices is also driving the market growth. Additionally, the presence of a large number of global players, such as Apple, Lenovo, and Samsung, has also contributed to the growth of the market in the region.
Financial Projections
In this part of the India Consumer Electronics Products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your India Consumer Electronics Products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenues for an India Consumer Electronics Products business come from sales of electronic products, services related to electronic products, and advertising. Here you will find a list with a description of each of them and other possible sources of profit such as sales of spare parts, repair services, and leasing of electronic products.
Projecting Expenses
In this section, all the regular expenses related to keeping the India Consumer Electronics Products business running will be described. The list of operating expenses includes wages, taxes, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the India consumer electronics market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Samsung India launched its latest range of smart TVs equipped with advanced display technology and sound capabilities.
– In August 2022, Panasonic India launched its latest range of air conditioners with energy efficiency ratings.
– In October 2022, Sony India introduced its latest range of home theatre systems with Dolby Atmos technology.
Some of the prominent players in the India consumer electronics market include:
– Samsung India
– Panasonic India
– Sony India
– LG Electronics India Pvt. Ltd.
– Videocon India
– Haier India
– Intex Technologies
– Godrej Appliances
– Dell India
– Xiaomi India
Global India Consumer Electronics Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global India consumer electronics products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Televisions
– Mobile Phones
– Refrigerators
– Washing Machines
– Air Conditioners
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Brick and Mortar Stores
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– India
– Rest of Asia-Pacific
– Europe
– North America
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Growth Drivers of the India Consumer Electronics Market?
[A]: The India consumer electronics market is driven by factors such as the growing demand for feature-rich products, increased availability of products at competitive prices, and the increasing disposable income of consumers. Additionally, the growing prevalence of online shopping and the rapid uptake of mobile phones are expected to further drive the growth of the India consumer electronics market.
[Q]: Which Regions are Expected to Exhibit the Highest Growth in the India Consumer Electronics Market?
[A]: The southern and western regions of India are expected to exhibit the highest growth in the India consumer electronics market, owing to the availability of advanced products and the presence of a large consumer base.
[Q]: What are the Opportunities and Challenges Faced by Market Participants?
[A]: Opportunities for market participants include the increasing number of product launches, the growing demand for consumer electronics in rural areas, and the emergence of new technologies. Challenges faced by market participants include the increasing competition from other players, the high cost of consumer electronics, and the emergence of counterfeit products.
[Q]: Who are the Key Manufacturers in the India Consumer Electronics Market?
[A]: Key manufacturers in the India consumer electronics market include Samsung, LG, Philips, Sony, and Panasonic.
[Q]: What are the Key Strategies Adopted by Market Participants?
[A]: Key strategies adopted by market participants include product launches and innovative marketing campaigns. Additionally, market participants are focusing on strengthening their presence in the Indian market through distribution network expansion and providing value-added services.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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