India consumer durable
finance market grew at a significant pace in the past few years and is expected
to register strong growth in the coming years as well. The market is projected
to grow from USD1110.63 million in FY2021 to USD2704.18
million in FY2027 accelerating with a CAGR of 21.63%
by FY2027. People are willing to buy consumer durable products that make the
day-to-day life easier, which is further boosting this market. Furthermore, the
rising urban class population base, strong brand awareness and increasing
disposable income are augmenting the demand for consumer durable finance across
the country. However, the strict COVID-19 lockdown imposed in India adversely
affected this market to some extend in FY2021 and is expected to carry forward
its impact in FY2022. The online options reported higher usage of financial
services during the lockdown period, as it was the only safe and available
option for the consumers. However, after the lockdown was lifted, there was a
slight rise in the demand for consumer durables, such as AC, television, etc.
as many people were working from home.
The affordable interest rates
of consumer durable loans are major driver for the growth of the market. The
interest rate of consumer durable finance is generally low and it varies from
company to company. Some institutions such as Bajaj Finserv are offering
consumer durable loans even on a 0% interest rate. Customers can enjoy
interest-free consumer durable loans with such companies. Easy finance schemes are
available at interest free EMI for consumer durables. Middle income group
people are able to afford this sort of financing due to low interest rates
which is propelling the demand in the market.
The India consumer durable
finance market is categorized on the basis of city into Tier 1, Tier 2 and Tier
3 cities. The tier 1 cities are contributing less to the growth of India’s
consumer durable finance market owing to the fact that the market in these
cities is at the stage of saturation. Thus, the next wave of growth will be led
by the emerging tier 1 and tier 2 cities. The growth of the tier 2 and tier 3
cities is attributed to the growing industrialization and increasing
establishment of industries and factories in the areas which are fueling the
growth of middle and upper class population in the cities. Growing middle and
upper class population base in these cities holds the potential of becoming a
major demand generator for consumer durables in India.
Some of the major players
operating in the India consumer durable finance market are Bajaj Finserv Limited, HDFC Bank Ltd., Fullerton India, Home
Credit India., Tata Capital Limited, ICICI Bank Limited, State Bank of India, IDFC
First Bank, Kotak Mahindra Bank Limited., and Early Salary. The market
players are constantly innovating their sustainable strategies like offering
attractive financing option, shifting towards digital financing, etc., to
remain competitive in the market.
Years
considered for this report:
Historical
Years: FY2017 – FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period:
FY2023 – FY2027
Objective of the Study:
- To analyze the historical growth in the market size of the India
consumer durable finance market from FY2017 to FY2021.
- To estimate and forecast the market size of the India consumer
durable finance market from FY2022 to FY2027 and growth rate until FY2027.
- To define, classify and forecast India consumer durable finance
market on the basis of type, city, and region.
- To analyze and forecast the market share, in terms of value, for consumer
durable finance with respect to type: smart phone, washing machine, refrigerator, air
conditioner, laptop, and others.
- To scrutinize the detailed market segmentation and forecast the
market size, in terms of value, and on the basis of region by segmenting
the India consumer durable finance market into four regions, namely –
North, East, West and South.
- To identify tailwinds and headwinds for the India consumer durable
finance market.
- To examine supply chain along with margins and evaluate pricing in India
consumer durable finance market.
- To strategically profile the leading players in the market, which
are involved in offering consumer durable finances in India.
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TechSci Research performed both
primary as well as exhaustive secondary research for this study. Initially,
TechSci Research sourced a list of suppliers, and service providers across the
country. Subsequently, TechSci Research conducted primary research surveys with
the identified companies. While interviewing, the respondents were also enquired
about their competitors. Through this technique, TechSci Research was able to
include the companies which could not be identified due to the limitations of
secondary research.
TechSci Research analyzed the financial
service providers and presence of all major players across the country. TechSci
Research calculated the market size of India consumer durable finance market using
a bottom-up approach, wherein data for various end-user segments was recorded
and forecast for the future years. TechSci Research sourced these values from
the industry experts and company representatives and externally validated
through analyzing historical data of these types and city for getting an
appropriate, overall market size. Various secondary sources such as company
websites, news articles, press releases, company annual reports, investor
presentations and financial reports were also studied by TechSci Research.
Key Target Audience:
- Consumer durable financial service providers,
consumer durable retail chains, and other stakeholders
- Organizations, forums and alliances related to
consumer durable finance
- Government bodies such as regulating
authorities and policy makers
- Market research and consulting firms
The study is
useful in providing answers to several critical questions that are important
for the industry stakeholders such as consumer durable financial
service providers, dealers, customers, and policy makers. The study would also
help them to identify which market segments should be targeted in the coming
years in order to strategize investments and capitalize on growth opportunities
in the market.
Report Scope:
In this report, India
consumer durable finance market has been segmented into following
categories, in addition to the industry trends which have also been detailed
below:
- India Consumer Durable Finance Market, By
Type:
- Smart
Phone
- Washing
Machine
- Refrigerator
- Air
Conditioner
- Laptop
- Others
- India Consumer Durable Finance Market, By City:
- India Consumer Durable Finance Market, By Region:
Competitive
Landscape
Company
Profiles: Analysis of the major companies operating in the India
consumer durable finance market.
Available
Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).