As India’s economy continues to move on an upward trajectory, there lies a remarkable upsurge in the consumer electronics market. This paves the way for a revolutionary era in the consumption and production of digital goods. Driven by the burgeoning middle class, rampant urbanisation, and tremendous technology advancements, India is poised to make an indelible mark as the global powerhouse of the consumer electronics ecosystem.
As per recent stats, India’s consumer electronics market is expected to reach a value of $124.94 billion by 2030, witnessing a CAGR of 6.5% between 2022 and 2030. Despite the sector’s ongoing struggles with supply chain bottlenecks, technological obsolescence, and dependency on imports, the emphasis on strategic planning and innovation directed towards enhanced connectivity and intelligent functionalities, has transitioned the industry towards sustained growth.
Limitless possibilities to shape the next decade of digital electronics explosion
Boasting the commitment of a dynamic transformation within the country’s consumer electronics landscape, the future horizons are going to be permeated by a significant interest in smart home technologies. In addition, it has also raised the demand for sustainable and eco-friendly gadgets with an emphasis on strengthening local manufacturing capabilities under the visionary “Make in India” initiative. Given the scenario, the enhancements in the digital infrastructure, supported by both governmental and private sectors render technology to be more accessible in accelerating demand even further, generating new trends in the market.
Push towards a digital-centric lifestyle
There is no doubt that consumer preferences have evolved at an unprecedented pace. Owing to this, India has embraced its latest cultural shift towards a digital-centric lifestyle, amplifying the consumption of electronics. Leaning heavily towards devices that not only offer smart features but also seamless connectivity, the Indian populace is more than eager to indulge in the trendiest electronic marvels, becoming emblematic of the global traction towards a more digital and interconnected lifestyle.
CEO
Semikart.
Being local for growth
There is a robust expansion of India’s consumer electronics market that has been underpinned by significant economic growth, favourable policy landscapes, and technological innovations. Additionally, there is a paramount factor that has made all this possible is India’s foray into local manufacturing. The revolutionary ‘Make in India’ initiative has propelled both public and private players to incentivize local production of crucial components, whilst increasing employment and lowering operational costs. Thus, this dynamic blend has allowed the industry to flourish, making leading technologies accessible to the market at large.
Dynamics of cost-effectively priced innovation
Amid the changing landscapes of work and entertainment in India, digital devices such as smartphones, laptops, smart TVs, and wearable technologies have occupied the spotlight. Ultimately, this creates the need for the right product-price balance, making it more imperative than ever before. Having witnessed the country’s vast internet user base, the consumer electronics market is increasingly focusing on affordable pricing strategies to be able to cater to the huge number of consumers. For instance, the penetration of smartphones in the country can be accorded to affordable pricing, allowing diverse users to venture into the space.
Intertwine of AI and electronics landscape
Technology has always been the core facilitator of India’s consumer electronics market’s success. In regards, the integration of Artificial Intelligence (AI) encapsulates the essence of a disruptive move, making space for personalised experiences, smart features, and predictive analytics. Enhancing the digital infrastructure further, AI-powered virtual assistants, facial recognition, voice control, and others will become an integral component of E-commerce platforms dedicated towards the electronics market, allowing greater user convenience.
The sustainability era
Throughout all the facets of India’s business landscape, sustainability has been making an undeniable mark. In fact, a recent survey by PWC revealed that eight out of ten consumers were willing to pay up to 5% more for sustainability-produced goods. Against the rising consumer demand for eco-conscious electronic products, electronics manufacturers have started to incorporate green production practices, leverage recyclable materials, and implement energy-efficient technologies. Considering the shift in the scenario, consumers will continue to prioritise companies that commit to green processes and production.
Assessing the impact on the semiconductor industry
Moving ahead, India’s consumer electronics market is poised to be on an upward trajectory, implying a higher demand for electronic devices, which will ultimately fuel the demand for semiconductors. With more devices being manufactured, domestic semiconductor companies have entered the marketplace to effectively address this pressing surge. At the same time, the push for local production of electronic components has empowered semiconductor manufacturers to establish or expand their production facilities in the country.
Becoming cognizant with the need to adapt the pricing strategies with the affordability requirements of the Indian consumer electronics market, semiconductor manufacturers are increasingly optimising the production process. With a streamlined process at the core, they will be able to develop low-priced semiconductor solutions, suitable for Indian consumers. Last but not the least, semiconductor manufacturers are working towards capitalising the demand for AI-enabled devices by building and marketing semiconductor products which are well optimised for AI applications, like AI chips or processors.
Way forward: Sustainable and innovative future
With India’s burgeoning consumer electronics market, there is also an upsurge in the demand for electronic devices, driving the demand for semiconductors. As more devices are manufactured, there’s a greater need for semiconductor components to power them which is where companies like Semikart come in. Further to navigate the digital revolution, semiconductor manufacturers need to align their pricing strategies with the affordability requirements of the budget-conscious consumers. Staying ahead of the digital era with resilience and innovation, local manufacturers can capitalise on the demand for AI-enabled devices such as specialised AI chips or processors. The series of these industry trends will not only accelerate the sector’s growth but also expedite the country’s forward-looking vision in the global digital economy.
