A report by The Associated Chamber of Commerce and Industry of India (ASSOCHAM) says that growing at a compounded annual growth rate (CAGR) of about 15 percent, the consumer electronics and durables sector in India is likely to reach Rs 52,000 crore by 2015 contrary to the global consumer electronics and durables industry growing at about 10 percent CAGR, currently estimated at about Rs 16 lakh crore, and likely to cross Rs 21 lakh crore mark by 2015. According to the study titled ‘Emerging trends in Consumer Electronics and Durables Industry,’ the consumer electronics and durables industry is currently valued at about Rs 34,000 crore.
Releasing the findings of the report, D.S. Rawat, Secretary General, ASSOCHAM, said: “Demand for consumer electronics and durables is driven by a young demographic population, coupled with rising disposable incomes amid skilled and highly educated workforce. Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics’ retail stores, online retail industry, and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry.”
The report also highlighted that multi-national companies with superior technology and better quality control account for a market share of about 70 percent of the overall consumer electronics and durables market in India and maintain a strong hold on the urban middle class segement growing at about 12 to 15 percent.
The study revealed that the consumer durables and electronics market in rural and semi-urban areas account for about 40 percent of the overall market and is growing at about 30 percent CAGR. The market in India is divided into three segements namely – white goods, brown goods, and consumer electronics. Air-conditioners, refrigerators, washing machines, and other domestic appliances fall in the white goods’ category, while microwaves, chimneys, fans, irons, juicers, mixers and grinders fall in the category of brown goods. Television sets, audio and video players, personal computers, laptops, cell phones, digital cameras, camcorders and other electronic accessories fall in the category of consumer electronics.
Rising technological innovations and the decrease in import duty on flat panel LCDs/LEDs television sets in the budget is also likely to fuel demand in the industry.