New Delhi: The Indian tech and durables sector sustained its growth momentum, registering 6 per cent volume and value growth in Q4 2024 compared to the same quarter of 2023, a new report showed on Wednesday.
Consumers are increasingly making value-driven choices, prioritising energy efficiency, durability, and advanced technology in their purchase decisions.
This shift is evident in the growing preference for high-efficiency appliances, with 4-star and 5-star ACs surging by 29 per cent and larger front-loading washing machines (8kg+) expanding by 39 per cent, according to NielsenIQ (NIQ), the world’s leading consumer intelligence company, in collaboration with GfK intelligence.
This trend of premiumisation is further reinforced by the rise of emerging brands — those with less than 5 per cent market share.
Premiumisation trend is no longer confined to metros. Consumers in smaller cities are increasingly seeking high-quality, feature-rich appliances and electronics.
The growth in smaller cities is higher, especially in tier 3 cities (with 1-5 lakh population). In Q4 2024, tier 3 cities outpaced metros and tier 2 cities, growing at 10 per cent, compared to 7 per cent in tier 1 and 6 per cent in tier 2, said the report.
“The growth of the tech and durables sector across various segments, including health, entertainment, kitchen appliances, and personal grooming, reflects consumers’ increasing inclination toward modern, convenience-focused living,” said Sharang Pant, Commercial Director, Tech and Durables, India, NIQ.
Emerging categories like air purifiers witnessed growth rates surpassing 100 per cent. Furthermore, categories like dishwashers and built-in kitchen solutions grew by 30 per cent, pointing to a growing shift towards more integrated, sustainable home solutions.
The year saw steady value expansion, varied growth patterns across categories, with major domestic appliances (MDA) and small domestic appliances (SDA) driving the market, the report mentioned.
In entertainment, the 3 per cent value growth in large UHD TVs (65 inches and above) reflects sustained consumer demand for enhanced, immersive viewing experiences.
The consumer trend of higher investment in technologically superior products isn’t just about luxury — it’s also about long-term value, sustainability, energy efficiency, smarter consumption, and concerns over health, efficiency, and the environment, said Pant.
A positive outlook for the economy is anticipated, with strong consumer demand expected due to the favourable tax structure announced in the Union Budget for FY 2025-26.
(IANS)
