- Domestic value addition for the appliances and consumer electronics products will grow to 54 per cent by 2024-25
- The overall market in this segment will grow to Rs 1,48,600 crore by 2024-25 from Rs 76,400 crore at present
According to a report by Business Today, a study released by Frost & Sullivan and the consumer electronics and appliances manufacturers association (CEAMA) has projected that the domestic manufacturing in the Indian consumer electronics market will witness a compounded annual growth rate of 17.8 per cent in the next five years. It also projected that the Indian consumer electronics market will see a compounded annual growth rate of 11.7 per cent in the next five years.
The study looked at five primary categories in the appliances and consumer electronics (ACE) market like audio, refrigerators, televisions, air conditioners and washing machines. The report estimated that the overall market in this segment will grow to Rs 1,48,600 crore by 2024-25 from Rs 76,400 crore at present.
Domestic value addition at 54 per cent by 2024-25
The study said that with the rise in the purchase of ACE products and favourable government initiatives like ‘Make in India’ and the National Policy on Electronics, India can transform itself into a global consumer electronics manufacturing hub. It added that the domestic value addition for the ACE products stood at 34 per cent in 2018-19 and it will grow to 54 per cent by 2024-25.
A reason for this growth in the consumer electronics market can be attributed to the young median age of the Indian population with more and more joining in the working age group in the coming years. Another reason is current low levels of penetration for some appliances like air conditioners which leaves scope for further growth.
