30/09/2024
The Electrical Consumer Durables (ECD) industry in India experienced significant growth in FY 2023-24, driven by strong consumer demand for premium products. This positive momentum is expected to continue into 2024, with projected growth of 7-9%. The expansion is fueled by various factors such as rural electrification, a growing real estate sector, rising per capita electricity consumption, and supportive government policies like the Production Linked Incentive (PLI) scheme and Remission of Duties and Taxes on Exported Products (RoDTEP). Additional drivers include the push for energy efficiency, through Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency (BEE) star ratings, a shift towards solar-powered products, and increasing consumer demand for upgrades and replacements.
Among the key sectors within the ECD industry, fans remain essential in Indian households and offices, with high penetration across demographics. The Indian Electric Fan Market is on a growth trajectory, expected to surpass revenues of ₹16,000 crore by FY 2027-28, with an annual growth rate of 7-8%.
The pumps industry, critical for sectors like agriculture, water management, oil and gas, residential needs, and manufacturing, plays a vital role in fluid transportation. The global pumps market was valued at $57.7 billion in 2023 and is anticipated to grow at a CAGR of 4.2% from 2024 to 2030. In India, the pumps market reached ₹7,500 crore in 2023, with the water pump market projected to grow at a CAGR of 4.5% between 2024 and 2032. The solar pump market is also set for rapid expansion, with a CAGR of 28% expected between 2025 and 2029.
The Large Domestic Appliances (LDA) sector has been thriving, driven by consumer demand for energy-efficient products, technological advancements, and the digital transformation of retail. The global market for air coolers is projected to reach $2.5 billion by 2025, growing at a CAGR of 10.8%, while the Indian air cooler market stands at ₹3,050 crore. The global water heater market, valued at $29.26 billion in 2023, is expected to grow at a CAGR of 4.7% from 2024 to 2030, supported by innovations in heating technologies and sustainable energy solutions. In India, the water heater market is valued at ₹4,600 crore. The global electric heaters market, which has seen substantial growth, was valued at over $10 billion in 2023.
The Indian Small Domestic Appliances (SDA) industry was valued at ₹3,900 crore in 2023 and is expected to grow significantly, reaching ₹7,800 crore by 2032, reflecting a CAGR of 8.17% from 2024 to 2032. Moreover, India’s Smart Home Market is expected to grow at a rate of 10.36% during the forecast period of 2023-2029.
India’s Electrical Consumer Durables (ECD) industry shows strong growth prospects, driven by increasing rural electrification, real estate demand, energy-efficient products, and government initiatives. Key sectors like fans, pumps, and large domestic appliances are witnessing significant expansion, with continued momentum expected through 2030.