India will become fifth largest consumer durables market
By 2025, it is expected that India is will become the fifth largest consumer durables market globally. The consumer durables industry is projected to double at 14.8 percent CAGR to reach approximately USD 12.5 billion in FY15 from USD 6.3 billion in FY10.
At present, more than 77 percent of households in urban India have a television, 33 percent own a refrigerator, 17 percent have an air cooler, and 13 percent own a washing machine. Air conditioner penetration in India compares unfavorably with other developing markets, especially Asian countries, along with the other consumer durables categories within the country.
The improving living standards have made home washing machines an essential consumer good in the Indian market. The changing environmental dynamics, urbanization and rising income levels are driving the growth of this segment that was once inhibited by the high price point.The Indian refrigerator market was worth INR 41 billion in 2009 and is projected to reach INR 223 billion by 2020. Although the market has been growing, it still remains underpenetrated. Market penetration of refrigerators in India is 21 percent as compared with the global average of 85 percent.
The Indian television market is shifting from the traditional cathode ray tube (CRT) technology to LED, LCD and Plasma televisions. Some leading players have officially stopped the production of CRT televisions and are now concentrating on LED TV's. While in 2012 CRT sales stood at 7 million units and flat panels stood at 5 million units, in 2014 CRT sales were only 2.5 million units while flat panel sales stood at close to 9 million units. It is expected the TV industry revenue will reach INR 130,500 crore by 2020. TVs form the next largest imports in the consumer durables sector behind air conditioners in India.