New Delhi: India’s consumer durables market is projected to grow at an 11 per cent compound annual growth rate (CAGR), reaching Rs 3 lakh crore by 2029, driven largely by the country’s young salaried workforce, according to a report released on Friday.

The report by GI Group Holding said young professionals are emerging as the key growth engine for the fast-moving consumer durables (FMCD) segment. They currently account for 37 per cent of overall consumer durables sales and nearly 45 per cent of financed purchases.

Gen Z is driving financed and smart purchases

The study found that 74 per cent of Gen Z consumers rely on EMI schemes or ‘Buy Now, Pay Later’ options when purchasing appliances and electronics. Product features remain the primary decision-making factor for 68 per cent of buyers, followed by online reviews (61 per cent), price (59 per cent) and warranty coverage (55 per cent).

While 73 per cent of consumers continue to prioritise value-for-money products, nearly 70 per cent are willing to upgrade to mid-tier or premium consumer durables if performance justifies the cost.

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Aspirational upgrades and brand switching rise

Women are playing a major role in aspiration-led purchases, with 61 per cent reporting a higher inclination towards premium upgrades.

Replacement cycles are also shortening. Around 46 per cent of consumers now replace consumer durables every two to three years, while 63 per cent switch brands during upgrades, signalling intensifying competition in the sector.

As a result, customer experience, after-sales service and service reliability are emerging as key differentiators in India’s expanding consumer durables market.

Smart devices to power next growth wave

The report highlighted the growing demand for smart appliances and connected devices. About 42 per cent of consumers already own at least one smart device, and 67 per cent indicated that their next purchase is likely to be smart-enabled.

Industry experts say the findings underline the importance of retail workforce training, immersive in-store experiences, strong post-purchase support and production-linked incentive (PLI) schemes to sustain sectoral growth.

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Companies that align with evolving consumer behaviour — particularly among India’s expanding middle class and young salaried professionals — are expected to gain market share in the coming years.

The Indian consumer durables sector has seen steady expansion, supported by rising disposable incomes, easy financing options and growing demand for premium and smart home products.

IANS