Analysis of the dryer market in India
The relevance of research
A dryer is an electromechanical installation for drying textiles (clothes, underwear, etc.), shoes, hats. Tumble dryers consist of a rotating drum through which heated air circulates to evaporate the moisture of the laundry. Tumble dryer rotates to maintain air space between items
Purpose of the study
Analyzing the state of the dryer market in India, assessing the market size, analyzing competitors, and identifying factors affecting the dryer market
Content
Part 1. Overview of the Indian dryer market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of dryers 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Dryer Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the dryer market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the production of dryers
3.1. Volume and dynamics of domestic production of dryers
3.2. Share of exports in the production of dryers
3.3. Segmentation of dryer production by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of dryers
4.1. The volume and dynamics of imports of drying machines
4.2. Import structure
4.3. The volume and dynamics of exports of dryers
4.4. Export structure
Part 5. Dryer Consumption Analysis
5.1. Dynamics of the volume of consumption of dryers
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Tumble dryer market forecast up to 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian dryer market
1.1. Main characteristics of the market
A washing machine makes it much easier to care for clothes, but after washing, clothes also need to be dried. For this purpose, a balcony is traditionally used, on which rows of ropes are stretched, or special room dryers. But manufacturers of household appliances have long figured out how to improve the drying process by releasing special dryers. This technique is not yet very popular, as many still consider it an unnecessary luxury. But it is worth noting that the ability to dry clothes immediately after washing has many advantages. Firstly, it frees up space on the balcony or indoors from drying accessories. Secondly, it saves time - no need to wait several hours for the clothes to dry. Thirdly, dust from the street does not sit on clothes and unpleasant odors do not eat in. Many models of dryers can even relieve the owner of the need to iron clothes - they can be immediately put in the closet. A tumble dryer is especially necessary for a family with small children, where a large amount of laundry has to be washed and dried every day. Some models can disinfect clothes with steam, which is very important for children's clothes.
The dryer can also be used for other purposes. For example, to freshen up everyday clothes if there is no need to wash them. Also, the device can clean soft toys that accumulate a lot of dust, fluff pillows or gently dry shoes.
Most tumble dryers look like washing machines. They have almost the same body, control panel, hatch and drum. The hatch can be both with glass and without it (completely plastic). The drum of dryers has a very large volume (from 80 liters) in order to dry a sufficient amount of laundry at a time. You can load up to 8-9 kg of wet clothes into them.
The tumble dryer does not need to spin the drum much, so it rarely exceeds 100 rpm. The principle of operation of the dryer is the same as that of the washing machine, only in it, instead of water, the laundry is treated with heated air. Evaporating moisture is condensed and removed in various ways.
Modern dryers have several programs for drying clothes. At intensive, it dries in less than an hour with very hot air, however, some fabrics may shrink after this. For them, a gentle mode is intended, which takes much more time. The Hand Iron program leaves the garments slightly damp, making them easier to iron. By turning on the “Wardrobe” mode, you will get absolutely dry clothes that can be immediately put away for storage. Timed drying is used when clothes need only a little drying. When you turn on the ""By type of fabric"" mode, the machine automatically sets the right time and temperature depending on the type of material.
According to the principle of moisture removal, dryers are divided into three types - ventilation, condensing and heat pump. Ventilation dryers are cheaper, but you should consider the principle of dehumidification, since the moist air from them must go outside. The hose of the device is most often connected to the ventilation system or drains water out the window, which is not very convenient. These restrictions are due to a small demand for such devices.
Much more convenient, but much more expensive, dryers with Heat Pump technology. They do not bring humid air outside, but pass it through the heat pump. There, moisture condenses and is removed, while the air is heated and reused. Due to the closed heat exchange system, such drying is very economical. There is practically no heat loss, so such a device can save its owner up to 50% of electricity compared to other dryers. But its purchase will cost much more.
The most popular are tumble dryers. A condenser tumble dryer is slightly more expensive than a ventilation tumble dryer, but uses less electricity. During condensation drying, moisture is not removed to the outside, the moist air heated by the heating element is cooled in the heat exchanger. The resulting condensate enters a special container, from which it is then simply poured out. Sometimes they are connected directly to the sewer so as not to remove the water manually. The advantage of condensing type dryers is that they can be installed anywhere without being tied to a ventilation or sewer system. Almost all models are equipped with special filters for fibers and villi, this detail purifies the air, improving its circulation inside the device. It is advisable to clean the filter after each cycle of the dryer. This prolongs the life of the motor and improves the quality of the equipment.
The main consumers in the dryer market are individuals, but it is worth noting that dryers are used in laundries, kindergartens, hospitals and other institutions where there is a need to wash bed linen or clothes.
Indian dryer manufacturers sell more than 60% of their products in the domestic market, sending the rest for export. It should be noted that India produces only professional dryers used in laundries, hotels, hospitals and other organizations where there is a need to wash clothes. To date, the market for dryers is saturated with the offer of foreign manufacturers, the volume of domestic production does not fully satisfy the domestic needs of the country, taking into account the growing demand for dryers in the domestic segment.
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1.2. Dynamics of the market volume of dryers 2017-2021 Potential market capacity
Consider the dynamics of the market volume of dryers in India in 2017-2021.
Diagram 2. Dynamics of the market volume of dryers, 2017-2021
The dynamics of the volume of the Indian market of dryers in real terms during the study period has a clearly positive development trend.
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In the structure of revenue from the sale of dryers in the union territories, the absolute leader is the Central Federal District, its share is 100%, since there are only two manufacturers of dryers in India and both are present in the Central Federal District.
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1.3. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, the demand in the dryer market in India.
Economic forces:
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- Decline in the purchasing power of the population - with low purchasing power, revenue in many industries is reduced, citizens in such conditions are ready to spend money mainly on essential goods.
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Political factors:
- The import dependence of the drying machine industry in terms of equipment for production and spare parts for it is a factor that negatively affects the market in question.
- State support for the industry is carried out within the framework of several federal projects provided for by the state program of India ""Development of Industry and Increasing its Competitiveness"", which provide for payments in 2022, such as: ""Development of agricultural engineering, specialized engineering, engineering for the food and processing industries"" , ""Development of the production of means of production"", ""Assistance in the implementation of investment projects and support for manufacturers of high-tech products in civilian industries"", ""Promotion of research and development work in civilian industries"". All national projects are described in the Unified Plan to Achieve the National Development Goals of India for the period up to 2024 and for the planning period up to 2030.
Technological factors:
- The introduction of online tools is a definite plus, since it reduces the time for searching for a supplier and model of a dryer, placing an order, exchanging documents, and makes the process of paying for goods more convenient. In addition, most dryer sellers (both household and professional) provide user support online.
- Moderate pace of technological change in the industry.
Social factors:
- Changing consumer behavior - the interest in using a large number of household appliances that save time and labor costs is associated with a high workload of citizens and a high pace of life.
- The transition of the majority of employees to remote work in 2020, the growth of employees working remotely in the future - these facts turned out to be an incentive for many to improve living conditions and home improvement, which influenced the growth in sales of household appliances in 2020 and maintaining demand in 2021
- India's population is slightly declining in 2018-2021. - accordingly, the level of consumption of goods and services in the domestic market of India also slightly decreases.
Table 1. STEP analysis of factors affecting the dryer market
Based on the analysis of factors affecting the dryer market in India, there is a balance of positive and negative factors affecting the market and, accordingly, demand.
Restraining factors: depreciation of the rupee against the dollar, as a result - a decrease in the purchasing power of the population, import dependence of the industry, negative dynamics of population growth.
The following political and technological factors have a stimulating effect on the analyzed market: government support for the industry, the introduction and development of online tools, and a moderate pace of technological change in the industry. A positive impact on the consumption of dryers is provided by such a social factor as a change in consumer behavior - the desire to equip life.
1.4. Dryer Market Life Cycle Stage
The dryer market in Russia is in a growth stage. This stage is characterized by high growth rates of production and revenue. Sales growth is due to an increase in purchases by existing consumers who have a positive experience with the product, or their recommendations to potential consumers and the emergence of new buyers. The main task of a company in the growth stage is to use all points of growth to extend this stage.
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In addition, at the stage of growth, a base of regular consumers has already formed. It is necessary to maintain contact and promptly respond to the requests of each of them, as well as monitor related markets - the entry of new players, changes in the composition, market trends. When working with a potential target audience, the emphasis should be on:
- achieving awareness of the company's product among the potential target audience;
- search for new consumers - use all opportunities to expand the target audience;
- active formation of loyalty and commitment to the product through attention to the needs of consumers.
The growth stage promotion strategy is formed with the goal of being present in the minds of consumers as a market leader. Here, it is most important to confirm your status not only by the terms of delivery and attention to consumers, but also by your presence in industry communities and participation in industry events. It is also important at the moment to adhere to environmental friendliness in production, which will positively affect the image of the manufacturer. It is also necessary to pay attention to offers for distribution channels in order to retain leadership in distribution.
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1.5. Competition from substitute products
Along with standard dryers, there are other types of drying equipment - these are drying cabinets. This is a completely different product, which has not yet gained such popularity as a drum dryer, but has won its consumer and a good reputation. The main difference is that there is no drum in the drying cabinet for clothes; things in it are located on special hangers or shelves.
The principle of operation of the drying cabinet: dry and heated to the desired temperature air enters the drying chamber, where it dries things. The moisture absorbed from the fabrics, together with the air, is removed through special ventilation openings. It is possible that moisture is collected in a special container.
The drying temperature inside the drying cabinet can reach 80 degrees. Moisture evaporated from things can be removed through a specially provided sleeve to the ventilation duct or enter the room where the cabinet is located. But the second option is not convenient - the humidity rises in the room, which leads to damp furniture, damage to interior items and mold. In the case of the variant with a container for collecting moisture, it must be emptied regularly.
If we compare the cabinet with a drum type dryer, then the processes in it are less intensive and, as a result, more gentle on the laundry, because there is no rotation. However, compared to a tumble dryer, the cabinet will take longer to dry the same amount of laundry.
A big plus of the drying cabinet is that things are in it without touching the parts and mechanisms of the machine during drying. This ensures that the fabric remains undamaged. In the closet, you can safely dry items made of delicate fabrics, underwear, hats, shoes.
Due to the free circulation of air, drying in the drying cabinet takes place in a gentle manner with high energy efficiency and low noise operation. This type of equipment has only one significant drawback - dimensions. A medium-sized wardrobe looks like a regular wardrobe, so for small apartments this is not the most reasonable solution.
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It is worth noting that conventional dryers (drum type) are the most popular due to the fact that they do not take up much space in the apartment, they can also be installed next to the washing machine or on it (in a column) using special fasteners.
Part 2. Competitive analysis in the dryer market
2.1. Major players in the market
In India, the production facilities of two players in the dryer market are located ...
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2.2. Market shares of the largest competitors
Chart 5. Shares of the largest competitors in the tumble dryer market in 2021
The market shares of the largest market operators are calculated based on the volume of production of dryers and the volume of imports of dryers to India in 2021.
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2.3. Profiles of major players
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Part 3. Analysis of the production of dryers
3.1. Volume and dynamics of domestic production of dryers
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According to dryer manufacturers and GidMarket analysts, the volume of dryer production in India in 2021 amounted to ...
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The volume of the dryer market correlates with the dynamics of production volume, since the Indian market is 99% saturated with foreign-made dryers imported to India by large companies, representatives of foreign brands of household and professional equipment. Accordingly, the size of the market directly depends on the volume of imports of dryers, which in turn increases annually due to the demand for household dryers in India.
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Diagram 7. Dynamics of the total revenue of the largest manufacturers (TOP-5) of dryers in India, 2017-2021
The top 5 players in the dryer market in India are the largest dryer importers...
Diagram 7 shows the dynamics of the total revenue of the largest market players for all types of activities of these enterprises. All enterprises from the TOP-5 are major importers, they own well-known brands of household and professional appliances, have production sites in many countries of the world, in addition to drying machines, they produce various household appliances, machines and equipment for production and business.
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3.2. Share of exports in the production of dryers
Share of exports in the production of dryers in India in 2017-2021 remains quite high, its value fluctuates from ...
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3.3. Segmentation of dryer production by region
Consider the production of dryers in India in terms of segmentation by region.
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3.3.1. Production by Union Territories
Table 4. Dynamics of production of dryers in India by union territories
The dynamics of production of dryers in the union territories reflects the overall dynamics of production in India as a whole.
The production of dryers is located in the Central Federal District; there is no production of dryers in other federal districts.
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3.3.2. Production by states of India
Dryer manufacturers have production sites in Vyazma (Smolensk region) and Orel (Oryol region), Central Federal District. At the same time, it should be noted that the main production volume falls on the products of VSW JSC (Vyazma, Smolensk region), about ...% of the total production volume is produced here.
Part 4. Analysis of foreign trade deliveries of dryers
4.1. The volume and dynamics of imports of drying machines
The share of imports in the dryer market during the study period is ...%, while there is no downward trend, since there is no production of household dryers in India.
Diagram 10. The volume and dynamics of imports of dryers in monetary terms
4.2. Import structure
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As mentioned earlier, the share of imports in the Indian dryer market is high, based on the analysis of imports by importing countries, it can be concluded that the Indian dryer market is saturated with Polish and Chinese products.
4.3. The volume and dynamics of exports of dryers
During 2017-2021 India's dryer export volume is mixed...
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The volume of imports of dryers to India remains quite significant in the study period, the share of exports in production is also significant - ...% on average, while Indian manufacturers produce and export a much smaller volume of products, which is aimed at the professional consumer, respectively, the trade balance is negative throughout the study period.
Export volumes increase with an increase in production volumes, import volumes also increase and remain quite high - all this suggests that production primarily seeks to satisfy domestic needs, which increase annually. Usually, a negative foreign trade balance indicates insignificant volumes of export deliveries compared to imports into the country, while the growing volume of exports indicates the demand for products in foreign markets. In this case, imports and exports belong to different segments - household and professional, respectively, as long as there is no production of household dryers in India, the trade balance will remain negative.
4.4. Export structure
The export of Indian-made dryers is carried out mainly to the CIS countries.
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Part 5. Dryer Consumption Analysis
5.1. Dynamics of the volume of consumption of dryers
Diagram 15. Dynamics of consumption of dryers in monetary terms, 2017-2021
The dynamics of consumption of dryers in the domestic market of India in the study period is calculated taking into account current prices, as well as their changes over the years. This calculation takes into account the import of products, calculated in ruble terms in accordance with the volume of imported products and the current dollar exchange rate in each year.
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5.2. Analysis of the results of tenders for the purchase
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The main organizers of such tenders are healthcare institutions, social protection institutions, law enforcement agencies and other government agencies whose activities include washing and drying linen and uniforms.
It is worth noting that the organizers of the purchase of dryers also initiate tenders for the maintenance of such equipment or its repair, which is also an additional income for suppliers and manufacturers.
Part 6. Price Analysis
6.1. Average producer prices by union territories
Average producer prices are calculated on the basis of prices published by producers in price lists, taking into account their changes over the years. Since both manufacturers are located in the Central Federal District, the other federal districts are not included in the table, and the average price for the Central Union Territory is the same as the average price for India.
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6.2. Average consumer prices by states in India
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The average retail price for household tumble dryers is presented based on the analysis of sellers' price offers by GidMarket analysts, the calculation by region was made according to Rosstat.
The average retail price per tumble dryer differs from the manufacturer's price as there is no production of domestic tumble dryers in India, while the manufacturer's prices for industrial tumble dryers vary only by the cost of delivery to a certain region and as such there is no retail sale of professional tumble dryers due to the high the cost of equipment and the purchase of additional services and goods complete with equipment.
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Part 7. Assessment of factors of investment attractiveness of the market
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- negative factors.
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- The most significant positive factors.
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Part 8. Tumble dryer market forecast up to 2026
The market analysis was carried out on the basis of methods based on identifying trends over time, adjusted for expert opinion in the industry. When compiling the forecast, methods of mathematical modeling, mathematical analysis and statistics were used, adjusted for market trends and expert opinions.
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Part 9. Recommendations and conclusions
Based on the analysis of factors affecting the dryer market in India, there is a balance of positive and negative factors affecting the market and, accordingly, demand.
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Diagrams
Diagram 1. The ratio of imported and domestic products in the dryer market,%
Diagram 2. Dynamics of the market volume of dryers, 2017-2021
Diagram 3. Revenue (net) from the sale of dryers by union territories for 2017-2021, %
Chart 4. Monthly dynamics of the US dollar against the rupee, 2016-2020, Rs. for 1 US dollar
Figure 1. Life cycle stage of the dryer market in India
Chart 5. Shares of the largest competitors in the tumble dryer market in 2021
Diagram 6. Dynamics of production volumes of dryers in India for 2017-2021
Diagram 7. Dynamics of the total revenue of the largest manufacturers (TOP-5) of dryers in India, 2017-2021
Diagram 8. The share of exports in production for 2017-2021
Diagram 9. Volume and dynamics of imports of dryers in physical terms
Diagram 10. The volume and dynamics of imports of dryers in monetary terms
Diagram 11. Dynamics of export of dryers in physical terms
Diagram 12. Dynamics of export of dryers in monetary terms
Diagram 13. Balance of exports and imports
Chart 14. Structure of exports by country in 2021
Diagram 15. Dynamics of consumption of dryers in monetary terms, 2017-2021
Diagram 16. Forecast of market size in 2022-2026
Tables
Table 1. STEP analysis of factors affecting the dryer market
Table 2. The main companies participating in the dryer market in 2021
Table 3. Profiles of companies participating in the dryer market in 2021
Table 4. Dynamics of production of dryers in India by union territories
Table 5. Structure of imports of dryers by importing countries in 2021
Table 6. Data for the top 10 tenders for the purchase of dryers announced in 2021
Table 7. Average producer prices in the dryer market by Union Territories
Table 8. Average consumer prices in the dryer market by state in India
Table 9. Assessment of factors of investment attractiveness of the dryer market
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