By: Prashant Bora, MD & CEO of OTEK (A Bora Multicorp Venture)
When the first AI models appeared in the public domain, they marked a watershed moment in human innovation. Soon after, global industries began recognizing the transformative capabilities of AI to enhance efficiency, reduce man-hours, and boost productivity. For the consumer electronics industry, the emergence of this new-age technology proved crucial, opening up new avenues for developing products that are not only more efficient but also significantly more productive than earlier models.
In the Indian context, the impact of AI on consumer electronics has been substantial, to say the least. In a country where, just a decade ago, consumer electronics were often considered a luxury in average households, AI-integrated products have now captured customer attention like never before. This shift is largely driven by Indian consumers’ preference for efficient products that deliver long-term cost savings and higher productivity.
For instance, state-of-the-art smart air purifiers are gaining traction rapidly in the Indian market—fueled by rising pollution levels and these devices’ ability to combine advanced filtration with cost efficiency. Similar trends can be observed in consumer behavior toward other AI-integrated electronics, with industry stakeholders anticipating a significant shift in preferences and sales in the coming years.
Era-Appropriate Push
A closer look reveals why AI integration in consumer electronics is becoming a priority. For decades, industry players have aimed to incorporate cutting-edge technology into their products. These efforts are part of a broader strategy to reduce operational costs, enhance performance, and align with evolving consumer needs and behaviour.
Take the early 2000s, for example: a major concern with white goods such as refrigerators was electricity consumption—a serious issue given rising energy prices in India. This prompted innovation that eventually led to the introduction of energy efficiency ratings by the Bureau of Energy Efficiency in 2006.
Today, the rise of AI presents an opportunity to embed intelligence into products, making them smarter, more analytical, and user-friendly. Features such as predictive maintenance, enhanced user experience, and adaptive performance are becoming standard. The implications go beyond immediate benefits—these products promise long-term viability, durability, and cost efficiency. For the average Indian user, this aligns perfectly with expectations from modern electronics, leading to booming sales.
What Does It Mean for the Indian Market?
While AI integration in consumer electronics is still in its infancy, early signs are promising. Indian consumers have shown a high level of receptivity to AI and related technologies. Combined with rising median household incomes, a clear trend is emerging: AI-enabled products are not only piquing consumer curiosity but also driving higher usage and satisfaction.
For the Indian market, this indicates that in the near future, brands will likely roll out an increasing number of AI-powered products to meet growing consumer demand. This shift could render older, non-AI models obsolete. As AI technology continues to evolve, it will allow manufacturers to develop more refined features and smarter solutions that address consumer needs more holistically—leading to improved satisfaction and a superior user experience.
While early AI-equipped models have faced some criticism, the initial feedback loop will be invaluable for brands aiming to resolve shortcomings in future versions. With both AI development and integration still in the early stages, the industry is entering an unprecedented window of opportunity for both brands and consumers. Current projections estimate that India will become one of the fastest adopters of AI-enabled consumer electronics—a trend that could lay the foundation for future innovations.
Looking Ahead
India is on the cusp of a transformation in the consumer electronics space, led by AI-integrated products. Going forward, deeper market penetration could lead to greater scalability, with new models offering better performance, increased efficiency, and enhanced cost savings.
However, early-stage challenges, such as higher initial costs—may arise. Fortunately, these can be addressed as adoption rates increase and economies of scale come into play. The Indian consumer electronics market is projected to grow at a healthy 9% annualized rate through 2030, and AI-integrated products are poised to be a key growth driver in the years ahead.