Rising innovation in consumer electronics products and rising consumer purchasing power are driving market growth in India’s consumer electronics segment. And while the market may be relatively small at present, with limited production capabilities, things are looking up with the launch of several government initiatives to boost this sector. So read on to discover the latest trends and growth opportunities within this industry.
차례
The Indian consumer electronics market
The landscape of the Indian electronics sector
Essential product insights
결론
The Indian consumer electronics market
The Indian consumer electronics market was valued at USD 71.17 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 6.5% between 2022 to 2030. The Indian smart TV segment grew by 74% in Q2 of 2022, with Xiaomi accounting for 13% market share, followed by Samsung at 12%. Additionally, the dishwasher segment is projected to exceed USD 90 million by 2026, fueled by the demand from metropolitan cities such as Bangalore, Mumbai, and Delhi.
The expansion can be attributed to rising consumer disposable income, shifting lifestyles, and easier access to credits. Furthermore, increased government and corporate manufacturing spending have resulted in positive changes in the industry. Additionally, India has attracted several investments from global players in the consumer 전자 부문.
The landscape of the Indian electronics sector
India’s electronics industry
India is experiencing high demand for electronics and is expected to grow by double digits this year. However, there is a demand-supply mismatch, necessitating reliance on imported electronics. This pattern is likely to continue unless industrial policies encourage the establishment of local manufacturing and distribution facilities.
Meanwhile, India’s 전자 market is diverse, with large multinational and indigenous firms on the one hand and many smaller firms on the other. Like other manufacturing sectors in India, most electronics manufacturers are informal and small units, limiting large-scale production.
Government initiatives to support the electronics industry
The Indian government has launched the Make in India Initiative, which provides a 15 to 20% CAPEX subsidy. Over the next few years, manufacturers are expected to increase their production and distribution channels. With the presence of organized retail, the market has introduced modern retail chains such as Reliance Digital, Tata Croma, and E-zone.
42 businesses were chosen to participate in the PLI (production-linked incentives) scheme for white goods under a government initiative, with a committed investment of USD 580.6 million. A leading Indian e-commerce giant, Flipkart, signed an MoY with the Ministry of Rural Development of India to empower local businesses and integrate them into the e-commerce space.
Furthermore, the government selected 14 companies under the PLI scheme for IT hardware. Additionally, the government extended the PLI scheme for large-scale electronic industries until 2026 to further boost the sector.
The government has invested USD 190 billion to produce one billion mobile headsets by 2025, as per the National Policy on Electronics 2019. A total of USD 100 billion in handsets are expected to be exported. On top of this, the introduction of 인공 지능 (AI) is expected to boost India’s industrial electronics sector further.
Allowances for electronics manufacturing development
Two major allotments for promoting electronics manufacturing in India are electronic manufacturing clusters (EMCs) and special economic zones (SEZs). The Indian central government launched the EMC scheme in 2012 to assist states in developing infrastructure. Manufacturers can receive a 50-75% subsidy of up to USD 10 million for setting up brownfield sites under this scheme. The government has also contributed USD 18.67 billion to EMCs.
The SEZs specializing in 전자 manufacturing can be found in several states within India. These SEZs provide numerous benefits to manufacturing plants, including tax breaks, duty exemptions on imported goods, and exemptions from service tax. However, because these SEZs are considered to be in foreign customs territory, they must pay regular customs duties.
Essential product insights
The largest revenue shares in 2021 were in the 스마트 폰 industry, which accounted for over 30% of all sales. The introduction of budget-friendly smartphones, the growth in disposable income, and the increase in the number of product launches in the market all contributed to the growth.
Additionally, the demand for high-speed data connectivity for IoT applications like smart devices is anticipated to accelerate the adoption of 5G smartphones.
The refrigeration segment is expected to grow rapidly between 2022 and 2030, and this is primarily due to rapid urbanization and a rise in disposable income. In addition, with advanced refrigerators in the market, Indian consumers are replacing old models with modern, high-tech ones.
Furthermore, many businesses are implementing competitive strategies such as collaborating with financial institutions to provide easy financing solutions to sell products.
The flat television market (LED, HD, LCD) was valued at USD 9.05 billion in 2018 and is projected to grow at a CAGR of 9.25% to reach USD 16.24 billion by 2024. The smart TV market saw a 65% YoY growth in 2021. According to the Department of Internal trade, electronics goods worth USD 1.34 billion were exported in May 2022.
With regulatory support from the government, the Indian refrigeration industry is expanding quickly and regularly introducing new products. To increase market share, they are also implementing competitive pricing. The rising penetration of fridges in the rural sectors is a key industry scenario.
마켓 플레이어
인도 가전제품 시장 includes both regional and international participants. The top players are investing heavily in research and development to expand their market share. Panasonic Corporation, India’s leading technology company, announced the addition of 43 new refrigerator models and 24 new washing machine models to its home appliance lineup in October 2021.
Toshiba opened a new home appliance business store in Bangalore, offering a host of home appliances such as 정수기, dishwashers, washing machines, and air purifiers, among others. Similarly, Bespoke debuted the first French-door 냉장고 and other appliances at Samsung’s CES booth in 2022.
Some of the top players in the Indian market include LG Electronics, Sony, Panasonic Corporation, Haier Electronics Group, Bajaj Electricals, Whirlpool Corporation, Samsung Electronics, Hitachi, Vijay Sales, Godrej Appliances, and Toshiba Corporation.
Investments by retail giants
Apple is currently in talks with India about establishing a manufacturing unit and possibly expanding production in India. They are also discussing the possibility of producing goods for export. Similarly, electrical appliance juggernaut V-Guard Industries has announced plans to open new manufacturing plants in the coming year. They also plan to open four more Hyderabad, Vapi, and Uttrakhand factories.
Lenovo, among other tech powerhouses, has announced plans to expand its manufacturing capabilities in India across multiple product categories, including 스마트폰, computers, and laptops, to meet rising consumer demand. TCL Group also intends to invest USD 219 million in establishing manufacturing plants for TVs and handsets.
Although many multinational corporations set up their own manufacturing plants, some contract with Indian domestic manufacturers, while many international firms expand their presence by forming joint ventures with local companies. These companies introduce FDI and technology into the country, generating positive economic growth drivers.
결론
If the government continues to support this sector, India could emerge as a potential regional manufacturing hub. The manufacturing sector will gain from incentives like lower borrowing costs, lower customs duties on raw materials, and incentives for exporting, among others.
