Major domestic appliances market sees 18% growth in first half of 2024

The market of major domestic appliances saw an 18 per cent value-based growth in the first half of 2024, helped by a strong demand for essential household items, according to a report from GfK.

The growth in MDA (major domestic appliances) market was led by Key categories such as air-conditioners and refrigerators, which reported a growth of 30 per cent and 7 per cent, respectively.

"This growth is 3X of growth in 2023 over the previous year," said the report from GfK, which is now an NIQ Company, a leading global market and consumer intelligence firm.

The small domestic appliances market recorded a 29 per cent increase in value, reflecting heightened consumer interest in home convenience products, according to the report.

 

The report also added that customers are now looking for feature-rich and premium products, which is fuelling the value growth in the appliance segment.

Now washing machines with capacities of 9kg or above have recorded an "impressive growth rate of 30 per cent", which is driven by consumers seeking enhanced performance and innovative features.

Similarly, the air-conditioner segment is benefiting from similar trends, where demand for energy-efficient and high-performance models has grown by 59 per cent in the split inverter and 5-star segments.

"Cooling appliances (refrigerator) have seen an 11 per cent increase in the side-by-side, French door, and 3/4 door segments," it said.

The report also suggests that despite such gains, the relatively low penetration of these products presents significant opportunities for industry expansion.

The smartphone and mobile phones segment had a 6 per cent reduction in volume, it was offset by a substantial 10 per cent increase in overall value.

"In particular, the smartphone segment registered a 12 per cent increase in value," it said.

The report further stated that India has emerged as "the fastest growing market for consumer tech and durables market" and this growth trajectory is underscored by a strong PMI (Purchasing Managers' Index) reading and declining inflation rates.

"The middle class in India is set to outspend the upper class by 2030, with half of the world's population expected to belong to the middle class, predominantly driven by growth in Asia," it said.