India’s Consumer Electronics Market Nears $100 Billion, Set to Become World’s 3rd Largest

India’s market for consumer electronics and home appliances like smartphones, laptops, air conditioners, and refrigerators is expected to reach nearly $100 billion by the end of December, according to analysts.

This massive market size would make India the third-largest in the world, just behind China’s $268 billion and the U.S.’s $155 billion, both expected by the end of 2024.

The $100 billion figure only includes devices and appliances sold within India and doesn’t count heavy appliances or related electronics, which would make the market even bigger.

Analysts expect the total value of consumer electronics and home appliances sold in India this year to be around $99 billion, with the potential to hit $100 billion if demand is strong during the festive season from September to December.

India’s market is growing fast, with a growth rate of around 10% this year—almost double that of China and triple that of the U.S., which is growing by 3.3%.

Tarun Pathak, director of research at Counterpoint India, explained that the rise in market value is due to easier access to affordable options and credit. He noted that the higher prices of products like smart TVs, boosted by financing and discount offers, have found a market among Indian buyers.

This growth is also reflected in company earnings. For example, Samsung India saw a 16% increase in net revenue to ₹98,924 crore in FY23, while Apple India earned ₹49,321 crore. The financial results for FY24 are not yet available, but these companies are expected to continue growing, especially Apple, driven by increasing iPhone sales.

However, not everyone agrees with the $100 billion valuation. Navkendar Singh, associate vice-president at IDC India, pointed out that higher market value doesn’t necessarily mean real growth. He believes that while more premium devices are being sold, this doesn’t mean there are new customers entering the market.

Retailers, on the other hand, are optimistic. Kailash Lakhyani, chairman of the All India Mobile Retailers Association, said that after a period of low demand, retailers are now seeing increased sales of higher-value electronics and expect more foot traffic during the festive season.