By Mr. Lalit Arora, Co-Founder, UBON
India’s consumer electronics market has witnessed substantial growth over the last decade. This growth has witnessed a notable surge in sales of electronic devices. According to Statista, revenue in the Consumer Electronics market is valued at US$ 69.15 billion in 2023. The market is anticipated to increase annually between 2023 and 2023 at a CAGR of 5.89%. This upward growth can be attributed to rapid urbanization, increased internet accessibility, and the burgeoning middle-class population.
Furthermore, progress in technology, along with an increase in disposable income, has driven consumers toward embracing a more digitally integrated lifestyle. Let us look at the burgeoning trend of increased consumer expenditure on electronic devices and its impact on Indian brands within the gadget accessory and consumer electronics industries.
An essential driver of the burgeoning electronics market is the spread of smartphones. The prevalence of smartphones as a means for communication, entertainment, and productivity has led them to become an essential tool in this digital age. Over 1.2 billion mobile phone users are there in India, out of which approximately 600 million are smart phone users, as per the statistics provided by the Ministry of Information and Broadcasting. The statistic not only highlights the increasing reliance on smartphones but also underlines the growing demand for compatible accessories such as power banks, earphones, chargers, and protective cases.
The rise in consumer electronics expenditure also covers the thriving market for smart accessories. Smart wearables have especially gained massive popularity as health and wellness take centre stage. Gadget such as fitness trackers and smartwatches are becoming increasingly common. This trend has opened avenues for Indian brands to innovate and provide accessories that seamlessly integrate with these devices, enhancing user experiences and elevating overall satisfaction.
A major game-changer for the evolution of Indian consumer electronics brands has been the e-commerce platforms. Online marketplaces offer a convenient avenue for consumers to explore, compare, and purchase electronic gadgets and accessories. Projections from the Indian Brand Equity Foundation (IBEF) indicate that the e-commerce sector is set to achieve a value of $99 billion by 2024, offering a strong distribution channel for domestic brands to reach a broader audience and catalyse sales growth.
Furthermore, the recent shift towards hybrid working has catalysed the demand for electronic devices. As more and more individuals juggle their time between home and office, the need for dependable and efficient devices has escalated. Laptops, tablets, and other productivity-enhancing gadgets have become essential tools for individuals balancing work responsibilities with leisure activities. This shift has spurred investments in technology that complements both work and personal lives, further propelling consumer electronics expenditure.
Besides, the support from the Indian government and its ‘Make in India’ initiative, intended to transform the country into a global technology and manufacturing hub, has led to a surge in digital innovation.
The surge in consumer electronics expenditure presents the right moment for Indian brands to assert their presence in a burgeoning market. By embracing technological innovation, affordability, quality assurance, and domestic brands, they are poised to tap into this trend and establish themselves as go-to choices for gadget accessories. The evolving preferences of consumers provide a canvas on which brands can paint their narratives of user-centric products and exceptional customer experiences.
As consumer spending on electronic devices continues to surge, Indian brands find themselves at the point of an extraordinary growth phase. With consistent efforts towards innovation, domestic brands are well-positioned to navigate this landscape and provide consumers with a range of gadget accessories that seamlessly integrate into their digital lives. The rise in electronics expenditure is reshaping the consumer electronics market and also ushering in a new era of opportunities for Indian brands to shine on the global stage.