Only 1 in 10 Indian households has an AC: Why India’s appliance market has a long runway

India’s consumer durables market has significant room for expansion, with household penetration of major appliances still well below levels seen in comparable Asian markets. According to the BCG-CII report, “Home Grown, World Ready: The Next Chapter for India’s Consumer Durables Industry”, India’s relatively low ownership of air conditioners, washing machines, refrigerators and televisions provides substantial headroom for future demand.

The report projects India’s consumer durables market to grow 8–10% annually through 2030, reaching ₹300–325 lakh crore. Rising incomes, greater access to financing, nuclearisation of households and premiumisation are expected to support this expansion.

AC penetration remains particularly low

Air conditioners have the largest penetration gap among the major categories examined. Only around 10–15% of Indian households have room air conditioners (RACs), compared with about 38% in Thailand, 80% in Malaysia and nearly 100% in China, according to the report.

This leaves India with a 30–90 percentage-point gap versus the regional markets compared in the study. The report identifies RACs as one of the categories with substantial potential as household incomes increase.

MUST READ: Govt cuts customs duty on edible oil ahead of festive season

Washing machines have a similar gap

Washing-machine ownership is also considerably lower in India. Only around 20–22% of Indian households have a washing machine, compared with 71% in Thailand, 98% in Malaysia and 99% in China.

The report estimates a 50–80 percentage-point penetration gap with these regional peers. As household incomes rise, ownership is expected to increase, particularly because penetration is closely linked to household income.

Refrigerator ownership is higher, but still behind peers

Refrigerators have a wider installed base, but India remains behind comparable markets. Around 45–50% of Indian households have refrigerators, compared with approximately 95% or more in Thailand and Malaysia and nearly 100% in China.

The resulting penetration gap is estimated at around 40–50 percentage points, indicating considerable room for market expansion as affordability and household incomes improve.

ALSO READ: FSSAI may bar 'analogue' products from using 'paneer' name. What it means for buyers?

TV ownership also has room to grow

Television penetration is comparatively stronger, at around 70–75% of Indian households. However, this remains below the 95% penetration in China and around 98% in Thailand and Malaysia.

The report puts the gap at roughly 20–30 percentage points.

Income growth could unlock demand

The report says appliance penetration follows an S-shaped curve as household income rises. It also projects nearly 7 in 10 Indian households could be nuclear by 2030, compared with around six in 10 in 2023. Rising nuclearisation means more households and potentially higher appliance demand.

With penetration still substantially below regional peers, the BCG-CII report identifies this gap as a key structural driver behind India’s consumer durables growth through 2030.

DO READ: FSSAI flags misleading claims, prohibited food products on Amazon, Swiggy, Zepto platforms