Energy-Efficient Home Appliances Going to Revolutionize the Market

Energy Efficient Home Appliances Going to Revolutionize the Market
Energy Efficient Home Appliances Going to Revolutionize the Market

Energy-Efficient Home Appliances Going to Revolutionize the Market

Energy requirements in developing nations such as that in India have grown rapidly in the past decade and so has environmental concerns. In a bid to make energy consumption sustainable, regulators across the globe have enforced energy labelling norms which have changed the market dynamics significantly. 

While the regulatory steps taken, do seem to be in the right direction, compliance with energy efficiency norms for home appliances makers has been a challenge. Besides, several studies also show that consumers are opting for more energy-efficient air coolers and refrigerators.

Data from Consumer Electronics and Appliances Manufacturing Association(CEAMA) suggests that sales of high-efficiency air coolers took a sharp dip after revised norms were introduced in 2018. Manufacturers explained that it was owing to the increased prices of air coolers. A similar trend was visible in refrigerator and AC sales.

However, the regulators are of the opinion that the changes in energy norms will benefit the consumers and manufacturers in the long run. Home appliance makers have been making their case for a tax cut for high rated appliances, the demand for which is slipping in India.

The regulatory push and the industry’s attempt to adjust with the same has more or less revolutionized the market. Global trends suggest that the energy market will constantly change and the manufacturers will be required to adjust with the same. 

The trends from developed nations also show that consumer behaviour changes over the years. Having said that, unlike the developed nations, India has a strong home appliances second-hand market. Slow progress made by developing nations in this regard has kept the household energy use at elevated levels.

According to the International Energy Agency (IEA), the global growth of household use of energy stands at 15 per cent and is not slowing down despite the number of regulatory changes brought about by the several developed countries, particularly in Europe. 

Developed nations have witnessed the positive impact of adopting energy-efficient home appliances.  A Financial Times report suggests that household energy consumption rose by 32 per cent between 1970 and 2004 but subsequently fell by 19 per cent in 2017.

Experts believe that this was the result of increased regulation in household appliances with focus on making them more efficient energy. The first compulsory labelling norms were  introduced in 1995, which was followed by another major change in 2009 aimed at weeding out least efficient appliances  


A major disruption in the production of household appliances such as air coolers and refrigerators has been caused owing to the lockdown announced by the Indian government. Consumer electronics appliances from different brands like Samsung, Panasonic and  LG refrigerator, AC, Cooler– among others have shut down production till March-end while this is the most important sale time for the season.

Large scale disruption caused due to the virus spread has already caused a precarious situation for manufacturers of household appliances in India which could become a major cause of headache for the authorities and consumers. 

Conclusion: As the new energy labelling norm has come into force, a sharp jump in the prices of high rated air coolers and other household products have been witnessed. Another revision for air conditioners is due next year and therefore experts and manufacturers are looking for a GST rate cut. As for the current market situation, revision of energy standards on a regular basis will continue to set the tone for the markets. Much will depend on the consumer reaction of the price cautious Indian middle class.


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