NEW DELHI: Driven by rising disposable incomes and easier consumer credit, India's consumer electronics and appliances market is on course to be worth $20.6bn by 2020, according to a new industry report.
The Consumer Electronics and Appliances Manufacturers Association (CEAMA), a trade body, and consultancy firm EY calculated that the market would more than double over the next five years, the Economic Times reported.
"The Indian market for consumer electronics and appliances is around $9.7bn and has grown at a CAGR [Compound Annual Growth Rate] of 9.7% over the 2010-2014 period and is poised to reach $20.6bn by 2020," their report said.
Urban areas currently account for about two-thirds (65%) of the Indian consumer durables market, but the report predicted that future growth will be driven by consumers in the countryside as the government steps up its rural electrification programme.
Rising income is another factor that will continue to boost the market and the report estimated that per capita income will be $2,200 in 2019, up from $1,500 in 2013. More retailers offering easier financing options to consumers will also help.
Turning to the growth projections for individual types of product, the report expected set top boxes to grow the fastest because of digitalisation of the country's cabling system.
Air conditioners are expected to grow by up to 7% between 2014 and 2020 while washing machines are forecast to grow even faster at 9% over the same period.
Meanwhile, the LED/LCD TV market is expected to record growth of about 20% while growth for refrigerators until 2020 will be about 10%.
Taken together, the report concluded that India is likely to become the fifth largest consumer durables market in the world by 2025.
Data sourced from the Economic Times; additional content by Warc staff