Financing options and 5G mobiles boosted demand
Smartphone supplies in India totalled 46 million units in Q3 of 2024, marking a 5.6% year-over-year increase as brands like Apple and Samsung played crucial roles in driving exports, especially within the smartphone segment, according to an industry report, citing the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.
The Indian smartphone market continues to experience robust growth, driven by attractive discounts, flexible financing options, extended warranties, and cashbacks and bank-specific that are available across online and offline channels.
“The introduction of many new 5G-enabled smartphones further boosted demand, underscoring the growing consumer preference for advanced connectivity,” says the “Consumer Electronics Market in India” report which has been added to ResearchAndMarkets.com’s offering.
Mobile phone production accounts for a significant portion of India’s consumer electronics manufacturing, making 52% of the total in 2023 https://www.makeinindia.com/home/.
Improved availability and affordability of electronic devices, coupled with enhanced infrastructure and connectivity, have made these products more accessible for rural consumers.
“Additionally, changing lifestyles and preferences, coupled with rising disposable incomes in rural areas, have led to an increased demand for consumer electronics,” said the report on 31 Jan.
The expansion of e-commerce services into rural markets has further facilitated the purchase of electronic goods, contributing to the overall surge in sales in the rural sector.
Further, there has been increasing demand for smartphones that have improved network connectivity in rural areas, given that the Indian government continues to focus on transitioning to a digital economy where different types of transactions can be carried out using smartphones.
Key deterrents to the growth of the market:
Air conditioners, refrigerators, and washing machines consume a lot of electricity because they have motors and other parts that need them to function. In India, the cost of electricity has increased, leading to higher electricity bills. As a result, consumers are opting for electronics that can operate with renewable energy sources such as solar and wind power, according to the report.
Overall, the report noted that the growth of India’s consumer electronics market is driven by rising demand from households, changing lifestyles, easier access to credit, and increasing disposable incomes.
Initiatives like Make in India, the Electronic Development Fund Policy, and the Production Linked Incentive Scheme have boosted local manufacturing by rationalizing duties and offering subsidies, in turn attracting global players.
High demand for advanced electronics, such as computers, mobile phones, and TVs, coupled with quality and affordability, has fuelled this expansion.
Players in the industry are:
Godrej & Boyce Manufacturing Company Limited;
BSH Household Appliances Manufacturing Private Limited;
Daikin Airconditioning India Private Limited;
LG Electronics India Private Limited;
Samsung India Electronics Private Limited;
Whirlpool of India Limited. Fiinews.com
