Surfing On Wave Of Premiumisation, Appliances Ind Expects 15% Growth

New Delhi: The appliances and consumer electronics industry expects 10-15 per cent growth in 2025 on the back of premiumisation trend, which is driven by rising incomes, changing prefer-ences towards energy-efficient, and connected products with innovative features such as AI and increasing desire for global quality products.

The year 2024 was transformative for the industry, in which it bounced back despite challenges such as rising raw material costs, price hikes, and supply chain disruptions, and displayed resili-ence by embracing technology and innovation.

The industry, which contributes 0.6 per cent of the GDP, is witnessing a transformative shift to-wards premiumisation, increasing the average sale price (ASP), driven by rising income, and young demography with changing preferences. Besides, factors such as a growing economy, ur-banisation, real estate growth, and increasing penetration into smaller markets like tier-III cities and further, will also help the industry grow.

“Looking ahead, we expect the appliances industry to grow approximately 12-15 per cent in 2025,” Kamal Nandi, Business Head and EVP at Appliances Business of Godrej Enterprises Group, said. The growth of the consumer durables industry will be driven by the adoption of products with higher energy efficiency, a preference for premium and connected appliances and will be fuelled by policies like PLI on the supply side, said Panasonic Life Solutions India Chairman Manish Sharma.

“In 2025, new-age technologies such as Artificial Intelligence (AI)/Internet Of Things (IoT), cloud computing, robotics, and automation to name a few, will continue to be leveraged to de-mocratise technological transformation and deliver smart ecosystem solutions to the consumers,” he said. Besides, the industry is also emphasising on enhancing localisation, research and innova-tion, and offering forward-looking, sustainable solutions, propelling India towards becoming a global hub for manufacturing, said Consumer Electronics and Appliances Manufacturers Associa-tion (CEAMA) President Sunil Vachani.

“Initiatives such as the production-linked incentive (PLI) schemes and Make in India have been instrumental in enhancing domestic manufacturing and attracting global investments,” he said.