India Consumer Market Sees Premiumisation And Smart Products Driving Electronics Sector Growth 2026
India’s consumer electronics and appliances sector is poised for significant expansion in 2026, fuelled by rising adoption of premium, energy-efficient, and AI-enabled products. With revenues expected to hit Rs 3 lakh crore by FY29, Tier II and III cities are emerging as critical demand hubs. Companies are investing heavily in local manufacturing, connected home technologies, and smart solutions to align with evolving consumer preferences and stricter energy efficiency norms.
Industry experts indicate that the sector’s growth is underpinned by rising household incomes, electrification in rural areas, and broader access to consumer finance. “India is expected to become the fourth-largest consumer durables market globally, with a projected CAGR of around 11 per cent,” said a senior industry official. The surge in demand is increasingly broad-based, spanning urban metros to smaller towns, reflecting a shift toward value-driven, future-ready appliances.The year 2025 marked a series of milestone developments that set the stage for 2026. LG Electronics India recorded a historic IPO oversubscribed more than 50 times, while Haier divested its 49 per cent stake in India to domestic investors. Samsung crossed Rs 1 lakh crore in domestic sales, highlighting the sector’s scale and investor confidence. Festive season sales benefited from GST reforms, which reduced duties on large appliances such as air conditioners, TVs, and refrigerators, further stimulating consumption.
Premiumisation remains a defining trend, with consumers favouring larger-screen TVs, frost-free refrigerators, front-load washing machines, and smart ACs that offer efficiency and connectivity. Executives from leading firms emphasise that aspiration-driven purchasing decisions are now guided by product aesthetics, reliability, and total cost of ownership. Tier II and III cities are contributing significantly to this upgradation wave, creating substantial headroom for market expansion.Manufacturers are simultaneously strengthening domestic production capabilities to reduce dependence on imports. LG is establishing its third facility in Sri City with a Rs 5,000 crore investment, while Haier is investing Rs 3,500 crore in a South India plant to increase local component integration. Samsung continues to expand AI-enabled solutions and participates in the Production-Linked Incentive scheme for display modules.
With stricter BEE energy-efficiency norms taking effect from January 2026, companies view the transition as an opportunity to innovate and differentiate. Smart and energy-efficient devices are expected to gain traction, with categories such as dishwashers, AI-enabled ACs, and connected appliances emerging as growth leaders.As India’s middle class continues to expand, and rural markets embrace modern home appliances, the sector is set not only for scale but also for sophistication. By combining localisation, premiumisation, and smart technology adoption, India’s consumer durables market is well-positioned to rival global benchmarks, supporting more energy-efficient and connected urban living.
