India will be a regional hub of electronics & semiconductor manufacture | TechTree.com

India will be a regional hub of electronics & semiconductor manufacture

By 2026, there will be one billion smartphone users in India and 80% of devices sold by this year will be 5G.

 

According to Deloitte, India's thriving domestic market will be the base for the electronics and semiconductor industries in the next 3-5 years. As the ecosystem matures in the medium to long term, India can be expected to become a strong regional hub in the manufacture of both these domains.

The recently announced incentive package of $10 billion to drive semiconductor manufacturing in India will encourage handset manufacturing in India to service the Indian smartphone market, which is the second-largest globally, in the next five years.

This is one of many observations in the India edition of Deloitte’s 2022 Global TMT (Technology, Media and Entertainment, Telecom) predictions.

"The government’s recent announcement on the Production Linked Incentive (PLI) scheme for the semiconductor and electronics manufacturing industries has the potential to create an end-to-end ecosystem for manufacturing electronic products. We expect the broader shift to digital to continue in 2022 and drive the industry growth in the future.” - P N Sudarshan, Partner and TMT Industry Leader, Deloitte India

Deloitte said there is more demand for smartphones in rural markets

More demand for smartphones in rural markets: Deloitte

The total cumulative shipments of smartphones in India are expected to reach 1.7 billion units from 2022 to 2026, creating a market of about $250 billion.

Smartphone demand in India will increase at a CAGR (Compound Annual Growth Rate) of 6% in the rural market and 2.5% in the urban market to reach a cumulative number of about 400 million units by 2026. 

"This is largely propelled by demand for internet services in the rural market with the adoption of e-learning, fintech and e-health platforms. Internet enabled devices in the rural market will also get a push with the government’s plan to fiberize all villages by 2025 under the BharatNet program." Deloitte said.

Deloitte said 5G devices will make up 80% (about 310 million devices) of smartphone demand by 2026. By this year Indian consumers will purchase 840 million 5G smartphones.


TAGS: semiconductors, Deloitte

 
News Corner
IMP IMP IMP
##