India Electric Appliance Rental Market By Product Type (Refrigerator, Water Purifier/Water Dispenser, Air Conditioner, Washing Machine, Others), By End Use (Residential, Commercial), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Electric Appliance Rental Market was valued at USD 221.84 Million in 2025 and is expected to reach USD 410.41 Million by 2031 with a CAGR of 10.80%. The India electric appliance rental market is witnessing rapid growth, driven by urbanization, rising disposable incomes, and the increasing preference for cost-effective, flexible solutions over outright ownership. Consumers, especially millennials and working professionals in tier-1 and tier-2 cities, are opting for rental services for appliances such as air conditioners, refrigerators, washing machines, and kitchen equipment, minimizing maintenance hassles and upfront costs. Startups and established rental platforms are expanding their offerings, leveraging app-based booking, doorstep delivery, and subscription models. The market is further fueled by the growing trend of co-living spaces and short-term rentals, where temporary appliance access is essential.

Key Market Drivers

Rising Urbanization and Changing Consumer Lifestyle

Urbanization in India has accelerated rapidly over the past decade, leading to the growth of metropolitan cities and the emergence of tier-2 and tier-3 urban centers. In 2024, India's urban population stands at 461 million, growing at 2.3% annually, with cities expected to contribute 75% of the nation's income by 2031. As more people migrate to cities for employment and education, the demand for modern conveniences such as air conditioners, washing machines, refrigerators, and kitchen appliances has surged. However, the high cost of purchasing multiple household appliances, coupled with space constraints in urban apartments, has prompted consumers to seek rental solutions. Additionally, the lifestyle of urban residents—characterized by short-term accommodation, frequent relocations, and shared living arrangements—has made renting appliances a more flexible and practical alternative. Millennials and young professionals, in particular, value convenience and cost-effectiveness, preferring access over ownership, which has become a key growth driver for the electric appliance rental market.

Increasing Disposable Income and Affordability

India’s growing economy has contributed to rising disposable income among middle-class households and young urban professionals. India's per capita disposable income, which was valued at USD 2.11 thousand in 2019, increased to USD 2.54 thousand in 2023. With greater financial flexibility, consumers are willing to spend on household appliances to enhance comfort and quality of life. However, high-end appliances such as smart refrigerators, air conditioners with inverter technology, and energy-efficient washing machines remain expensive for outright purchase. Rental services bridge this affordability gap, allowing users to access premium appliances at a fraction of the purchase cost. This model reduces financial burden while providing access to the latest technology and brand options. Seasonal appliance rentals, such as air conditioners during summer months, are particularly attractive to cost-conscious consumers, further stimulating the market. The combination of increasing purchasing power and preference for temporary or short-term solutions has significantly propelled the growth of the appliance rental sector.

Emergence of Technology-Driven Rental Platforms

The proliferation of technology-driven platforms has revolutionized the appliance rental landscape in India. Mobile apps and online portals now enable consumers to browse appliance options, compare prices, schedule deliveries, and manage subscriptions from the comfort of their homes. Advanced digital tools, including AI-based inventory management and predictive maintenance systems, ensure efficient operations for rental companies while enhancing customer experience. These platforms also offer subscription-based models, flexible rental durations, and doorstep installation, which are particularly appealing to tech-savvy consumers. The convenience of booking and managing rentals online has lowered the barriers to entry for new users and expanded market reach across multiple cities. The increasing penetration of smartphones and internet connectivity has therefore emerged as a key enabler, driving adoption and accelerating growth of the electric appliance rental market in India.

Growing Awareness of Sustainability and Resource Optimization

Environmental consciousness and the push for sustainable consumption are becoming significant drivers in India’s appliance rental market. Renting rather than purchasing reduces resource consumption and electronic waste, aligning with broader global sustainability goals. Consumers are increasingly aware of the environmental impact of overproduction and disposal of appliances, which has encouraged the adoption of rental services as a greener alternative. Rental companies also focus on maintaining and refurbishing appliances for repeated use, further promoting a circular economy. Additionally, businesses and co-living spaces are opting for shared appliance solutions to minimize waste and optimize resources, while households view rentals as a way to reduce unnecessary purchases and clutter. This combination of environmental awareness and resource optimization has strengthened the market’s appeal among both individual consumers and corporate clients, driving sustained growth.

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Key Market Challenges

High Maintenance and Operational Costs

One of the significant challenges in the electric appliance rental market in India is the high cost of maintaining and managing appliances. Rental companies must ensure that all products, from air conditioners to washing machines, are in optimal working condition to avoid customer dissatisfaction. This involves routine maintenance, timely repairs, replacement of faulty parts, and sometimes complete refurbishment. Additionally, logistical costs for pickup, delivery, and installation can be substantial, especially in tier-2 and tier-3 cities where transportation infrastructure may be less developed. Operational inefficiencies can reduce profitability, particularly for small and mid-sized rental providers. Companies must invest in skilled technicians, advanced maintenance systems, and inventory management tools, which adds to overheads and can limit expansion if not managed effectively. The challenge is compounded by the need to keep appliances up to date with rapidly evolving technology to meet consumer expectations.

Consumer Trust and Quality Concerns

Another major hurdle for the appliance rental market is establishing consumer trust and ensuring consistent quality standards. Many potential customers are hesitant to rent appliances due to concerns about hygiene, appliance performance, and reliability. Issues such as previous wear and tear, cleanliness, and delayed service can negatively impact the user experience. Unlike owned appliances, rented products are shared among multiple users, which can exacerbate these concerns. Moreover, negative reviews and social media feedback can quickly influence public perception and hinder market growth. Rental companies must invest in stringent quality control measures, regular inspections, and effective customer support to address these apprehensions. Building trust through transparent rental policies, warranties, and prompt servicing is essential, but it requires continuous effort and resource allocation.

Regulatory and Market Fragmentation Challenges

The India electric appliance rental market is still relatively nascent, and a lack of standardized regulations presents a significant challenge. Policies regarding consumer rights, product liability, taxation, and electronic waste management are evolving, leading to uncertainty for rental businesses. Additionally, the market is highly fragmented, with numerous small players, startups, and informal operators competing alongside established platforms. This fragmentation makes it difficult to maintain consistent service standards and brand recognition. Local regulations, municipal licensing requirements, and varying state-level tax structures add complexity to operations, particularly for companies aiming to scale across multiple regions. Companies must navigate these regulatory hurdles while balancing competitive pricing and service quality, which can strain resources and slow growth. Achieving market consolidation and regulatory clarity will be crucial for long-term sustainability.

Key Market Trends

Subscription-Based and Pay-Per-Use Models

A prominent trend in the India electric appliance rental market is the shift from traditional short-term rentals to subscription-based and pay-per-use models. Instead of renting an appliance for a fixed period, consumers can now subscribe to a monthly or annual plan that includes maintenance, upgrades, and replacement options. This model offers predictability in cost, convenience, and flexibility, allowing users to access premium appliances without the burden of ownership. Pay-per-use options are gaining traction for high-cost or seasonal appliances like air conditioners, heaters, or commercial kitchen equipment, where usage patterns fluctuate. These models also benefit rental companies by creating recurring revenue streams and better customer retention. The growing preference for subscription-based consumption aligns with India’s broader shift toward “access over ownership,” particularly among urban millennials and tech-savvy consumers.

Integration of Smart and Connected Appliances

The market is increasingly embracing smart, IoT-enabled appliances, reflecting a broader trend in home automation and connected living. The Ministry of Electronics and Information Technology (MeitY) projects India's electronics market to reach USD 300 billion by 2025–26, driven by increasing domestic demand and urbanization. This growth is supported by initiatives like the Production-Linked Incentive (PLI) scheme and the 'Make in India' campaign, which aim to boost domestic manufacturing and reduce reliance on imports. Rental companies are incorporating smart refrigerators, washing machines, air conditioners, and kitchen gadgets with Wi-Fi connectivity, mobile app controls, and AI-powered energy management. These appliances allow consumers to monitor usage, control settings remotely, and receive alerts for maintenance or faults. Smart appliances not only enhance user experience but also provide rental companies with real-time data on performance, usage patterns, and maintenance needs, enabling predictive servicing and operational efficiency. The rising consumer interest in technology-driven convenience and energy efficiency has made smart appliances a differentiator for rental providers, influencing customer acquisition and loyalty.

Expansion into Tier-2 and Tier-3 Cities

While metro cities initially dominated the appliance rental market, there is a growing trend of expansion into tier-2 and tier-3 cities. Rising urbanization, improving digital connectivity, and growing middle-class income in smaller cities have created untapped opportunities for rental services. Companies are tailoring their offerings to meet local preferences, affordability, and logistical challenges. This expansion is often accompanied by localized marketing strategies, partnerships with real estate developers, and tie-ups with co-living spaces and small businesses. Additionally, rental providers are investing in decentralized warehousing and delivery networks to ensure timely service and maintenance. By tapping into these emerging markets, companies can diversify revenue streams and reduce dependence on saturated metropolitan areas, thereby driving overall market growth.

Focus on Sustainability and Eco-Friendly Initiatives

Sustainability is becoming a central trend in the appliance rental market, with companies emphasizing eco-friendly practices and promoting a circular economy. Rental businesses are adopting measures such as refurbishing old appliances, reducing energy consumption through energy-efficient models, and minimizing electronic waste through systematic reuse. Marketing campaigns increasingly highlight these green initiatives to appeal to environmentally conscious consumers. Additionally, partnerships with local recycling and e-waste management firms are helping rental companies enhance their sustainability credentials. Businesses and co-living spaces are also preferring shared appliances to reduce unnecessary purchases and environmental impact. This trend not only addresses growing consumer awareness of sustainability but also positions rental companies as responsible and forward-thinking, which can be a competitive advantage in a socially conscious market.

Segmental Insights

Product Type Insights

Air Conditioner (AC) segment was the dominating category in the India electric appliance rental market, driven by high upfront costs and seasonal demand. Consumers, particularly tenants, students, and residents in co-living or temporary accommodations, prefer renting ACs to avoid large investments and maintenance responsibilities. The rising adoption of energy-efficient and smart inverter ACs further enhances rental appeal, allowing access to advanced technology without ownership costs. App-based rental platforms offering doorstep delivery, installation, and timely maintenance add convenience, boosting adoption. Seasonal usage, urban housing trends, and cost-effectiveness position the AC segment as the market leader among all household appliance rentals.

End Use Insights

The residential segment is the fastest-growing in the India electric appliance rental market, driven by increasing urbanization, rising disposable incomes, and the growing preference for flexible, cost-effective solutions among households. Young professionals, students, and families living in rented apartments or co-living spaces are seeking convenient access to appliances such as air conditioners, refrigerators, washing machines, and water purifiers without the burden of ownership. Seasonal usage, high upfront costs, and limited space make rental solutions particularly attractive for residential consumers. Technology-driven platforms offering app-based booking, doorstep delivery, maintenance, and subscription plans further enhance convenience and reliability. As urban lifestyles evolve and flexibility becomes a priority, the residential segment continues to outperform commercial or institutional rentals in adoption and growth.

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Regional Insights

The North region dominated the India electric appliance rental market, driven by high urban population density and rapid growth of metropolitan and tier-2 cities such as Delhi, Gurgaon, and Noida. The region has greater adoption of organized rental platforms offering app-based booking, doorstep delivery, and maintenance services, making rentals more convenient and reliable for consumers. Seasonal demand, especially for air conditioners during scorching summers, further boosts market activity. Additionally, rising disposable incomes and a large base of young professionals and students in shared or rented accommodations contribute to the North’s leadership. This combination of factors positions it as the most prominent region in the market.

Recent Developments

• In 2024, Rentomojo, a well-established rental platform in India, launched the "Brave to Be Free" campaign, aimed at encouraging individuals to break free from societal constraints and follow their true passions. This initiative serves as a strong call to those feeling restricted by financial pressures, routine, and societal expectations.
• In 2023, DrinkPrime expanded its operations with the inauguration of a new production facility in Hyderabad. This strategic move underscores the company’s commitment to the city and strengthens its mission to deliver clean, safe, and healthy drinking water to a broader audience. The facility is set to enhance DrinkPrime’s operational capacity, supporting its growth and the increasing demand for quality water solutions across the region.
• Rentomojo, a prominent furniture and appliance rental platform, reported strong profits in FY24 and announced plans for an Initial Public Offering (IPO) by 2025. This indicates significant growth and investor confidence in the appliance rental sector.
• LG Electronics India launched a new appliance rental business in 2024, offering subscription-based rentals for products like refrigerators, washing machines, and microwave ovens. This move aims to diversify revenue streams and enhance customer satisfaction, with plans to expand the service across all sales channels

Key Market Players

• Edunetwork Private Limited (RentoMojo)
• House of Kieraya Limited (Furlenco)
• AVA Lifestyle Products & Services Pvt Ltd (Rentickle)
• Cityfurnish India Private Limited
• Livpure Smart Homes Private Limited
• Waterwala Labs Private Limited (DrinkPrime)
• Guarented Rental Private Limited
• M/s. Omshreem Technologies Pvt. Ltd. (Rentit4me)
• Rentity Global Services Private Limited
• RentPeLelo

Report Scope:

In this report, the India Electric Appliance Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Electric Appliance Rental Market, By Product Type:

o   Refrigerator

o   Water Purifier/Water Dispenser

o   Air Conditioner

o   Washing Machine

o   Others

• India Electric Appliance Rental Market, By End Use:

o   Residential

o   Commercial

• India Electric Appliance Rental Market, By Region:

o   North

o   South

o   East

o   West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Electric Appliance Rental Market.

Available Customizations:

India Electric Appliance Rental Market report 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).

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