India’s home & household sector to hit $166 billion by FY2030, driven by premiumisation and smart living

India’s home and household sector, pegged at $105 billion in FY2025, is on track to cross $160 billion by FY2030, growing at a 9.6% CAGR. 

Deloitte India’s latest report, ‘Building Beyond Basics: Innovations Transforming India’s Living Spaces,’ shows how rising disposable incomes, sustainability concerns, and demand for smarter homes are reshaping consumer choices.

The survey reveals that price has slipped down the priority list, with only 25% of respondents ranking it as a top factor. Instead, lifestyle upgrades and product obsolescence account for nearly half of all home-related purchases. 

“India’s construction and building materials industry is at an inflection point, one where aspirations, technology and sustainability converge to reshape the way we live,” said Praveen Govindu, Partner, Deloitte India. “As rising incomes and urbanisation fuel demand for smarter and greener living spaces, the sector is no longer about homes alone, but about experiences, lifestyles and future-ready communities.”

Premiumisation and sustainability trends

Meanwhile, the premiumisation wave is evident across categories. Engineered wood panels, vinyl flooring, and decorative paints are gaining ground as high-performance, low-maintenance options. The flooring market alone is projected to reach $16.2 billion by FY2030, growing at an 8.6% CAGR. Similarly, the home security segment — spanning smart locks, cameras, and hazard prevention devices — is expanding at 18% CAGR to reach $4.4 billion by FY2030.

Sustainability is firmly embedded in consumer expectations. Eco-friendly paints, reclaimed wood, and solar-integrated roofing are increasingly in demand. The smart home segment is another growth engine, expected to post a 30% CAGR between 2025 and 2030, driven by AI-enabled electrical devices and sensor-based lighting solutions.

Trends across sub-sectors

The domestic electricals industry is moving towards branded players, with their share projected to climb from 76% in 2023 to 82% by 2027. India’s paints and construction chemicals market is projected to grow at a 9–13% CAGR, with decorative paints leading demand from tier-2 and tier-3 cities.

Sanitaryware, kitchens, and bath fittings are evolving into aspirational categories, expected to expand nearly 10% annually, led by touchless faucets, modular kitchens, and design-driven fixtures. The wood panel market, projected to touch $9.6 billion by FY2030, is seeing higher adoption of engineered panels and eco-certified products.

Policy and demographic drivers

Government programmes, such as Pradhan Mantri Awas Yojana, which has already delivered over 28 million homes, along with the Urban Infrastructure Development Fund (UIDF) and UJALA scheme, are expanding access to housing and quality materials in Tier-2 and Tier-3 cities. Urbanisation, projected to reach 40% by 2030, and the rise of nuclear families will drive demand for over 144 million new homes by 2070.

The report says that India’s residential construction industry, which is already contributing about 7% to GDP, grew 6.8% in FY2025 and is set to reach $350 billion by FY2030. Rising disposable incomes, with per capita income forecast to increase from $2,540 in 2023 to $4,340 by 2029, are expected to sustain this momentum.

“Brands that can anticipate the shifts, innovate with purpose, and embed sustainability at scale will not just ride this growth wave; they will set the benchmarks for India’s journey to a $350 billion market,” Govindu added.