The Appliances and Consumer Electronics (ACE) industry is poised for strong growth in 2025, expected to grow by 10-15% due to premiumization, rising incomes, and a shift towards energy efficient, AI-enabled, and connected products. . According to industry leaders, the growing preference for global standards and innovative features underlines this trend.

The year 2024 was a turning point for the sector, which demonstrated resilience amid challenges such as rising raw material prices, supply chain disruptions, and price hikes. The industry, which contributes 0.6 percent to India’s GDP, embraces technological advancement and innovation to sustain growth.

Kamal Nandy, Business Head and EVP of Godrej Appliances highlighted the momentum of the sector and said, “Looking ahead, we expect the appliance industry to grow at around 12-15% in 2025. He attributed the growth to rising incomes, urbanization, real estate expansion and penetration of smaller markets, including tier III cities..

Manish Sharma, Chairman, Panasonic Life Solutions India noted that adoption of policies such as high energy efficiency, premium appliances, and the Production Linked Incentive (PLI) scheme will drive the sector forward. “In 2025, new-age technologies such as AI, IoT, cloud computing, and automation will continue to democratize technological change and provide smart ecosystem solutions to consumers,” said Sharma.

ACE is also focusing on industry localization, research and sustainable innovation. Appreciating initiatives like PLI scheme and Make in India, CEMA President Sunil Bachani said, “These are playing an important role in boosting domestic manufacturing and attracting global investment. Vachani estimates value-based growth of 12-14 percent in 2024, emphasizing strong demand for energy-efficient products.

The room air conditioner (RAC) segment is set to grow by 30 percent in 2024, driven by rising temperatures and greater market penetration in tier-I and tier-II cities, Vachani said. Voltas, a Tata Group company achieved record-breaking sales of over 2 million units, making 2024 a “historic year”, according to its CEO Pradeep Bakshi. “Looking ahead to 2025, we expect significant growth,” added Bakshi, highlighting AI and IoT integration as key trends.

Premiumization is also driving the industry, increasing the average selling price (ASP) of products such as air conditioners, washing machines, refrigerators, and LED TVs. Haier Appliances India president NS Satish predicted double-digit growth in 2025, stressing the importance of differentiated products and strong after-sales service.

Saif Khan, CEO, BSH Home Appliances highlighted the growing demand for premium appliances such as high-end dishwashers, built-in cooking ranges, and high-capacity washing machines. “Consumers are looking for higher quality, innovation, and better lifestyle experiences,” said Khan.

Dixon Technologies (India), a leading contract manufacturer, termed 2024 as a “transformational” year, with India’s electronics manufacturing sector crossing the $120 billion mark and exports growing by 40% year-on-year. Executive Chairman Sunil Bachani commented, “These achievements underscore India’s growing reputation as a trusted destination for high-quality manufacturing. The journey ahead is promising.”

Looking further ahead, Manish Sharma estimates a compound annual growth rate (CAGR) of 11 percent for India’s consumer electronics sector, which will reach $35.73 billion by 2029 and create five lakh jobs. “Indian RAC manufacturing could expand to Rs 100,000 crore by 2029, with exports accounting for 35 per cent of total manufacturing,” he added.

With strong fundamentals, evolving consumer preferences, and supportive government initiatives, the ACE industry is poised to touch new heights in 2025 and beyond.