India’s ACE Industry Eyes Double-Digit Growth Driven by Innovation

The appliances and consumer electronics (ACE) industry is set for a strong performance in 2025, projecting a 10-15% growth fueled by premiumization, rising incomes, and a shift towards energy-efficient, AI-enabled, and connected products. This growth reflects increasing demand for global-quality and innovative features, say industry leaders.

The transformative year of 2024 demonstrated the sector's resilience, overcoming challenges like rising raw material costs, supply chain disruptions, and price hikes. Contributing 0.6% to India’s GDP, the ACE industry leveraged technological advancements to maintain its growth trajectory.

Kamal Nandi, Business Head and EVP of Godrej Appliances, anticipates 12-15% growth in 2025, driven by urbanization, real estate expansion, and penetration into tier-III markets. Similarly, Manish Sharma, Chairman of Panasonic Life Solutions India, cited the growing adoption of AI, IoT, and energy-efficient appliances, along with PLI schemes, as key growth drivers.

The sector is also focusing on localization, research, and sustainability. CEAMA President Sunil Vachani praised Make in India and PLI schemes for boosting domestic manufacturing and attracting global investments. He projects 12-14% value-based growth in 2024, underpinned by the rising demand for energy-efficient products.

The room air conditioner (RAC) segment experienced 30% growth in 2024, with Voltas reporting record-breaking sales of over two million units, according to CEO Pradeep Bakshi. Looking forward, AI and IoT integration are expected to be key trends.

Premiumization is also lifting the industry, raising the average selling price (ASP) of products like air conditioners, washing machines, and LED TVs. Haier India President N.S. Satish forecasts double-digit growth, emphasizing the importance of differentiated products and after-sales service.

Additionally, BSH Home Appliances CEO Saif Khan noted rising demand for premium appliances, including advanced dishwashers, built-in cooking ranges, and high-capacity washing machines. He attributed this to consumers seeking superior quality and enhanced lifestyle experiences.

The year 2024 was also transformative for manufacturing, with Dixon Technologies highlighting India’s electronics manufacturing sector surpassing $120 billion in value, coupled with 40% year-on-year export growth. Executive Chairman Sunil Vachani remarked on India’s growing reputation as a trusted manufacturing destination.

Looking ahead, Manish Sharma forecasts an 11% CAGR for India’s consumer electronics sector, reaching $35.73 billion by 2029, with the potential to create five lakh jobs. He also predicts Indian RAC manufacturing could expand to Rs 100,000 crore, with exports contributing 35% of total manufacturing.

Supported by evolving consumer preferences, government initiatives, and strong fundamentals, the ACE industry is poised to scale new heights in 2025 and beyond.