India has become one of the fastest growing electronics markets in the world and according to industry experts India is expected to reach USD 300 billion worth of electronics manufacturing by 2025-26 which is nearly 4 times from the current USD 67 billion. Production Linked Incentive Scheme has played a major role in propelling the growth of domestic electronics products manufacturing and accounted for thousands of job creation. India is currently witnessing a digital revolution, which is propelling the growth of the consumer electronics industry. The electronics industry contributes 2.5% to the country’s GDP and it employs about 13 million people. Atma Nirbhar Bharat has played a significant part in reducing the import of electronics. The increasing labor costs in China and the geo-political trade has made big players in the electronics industry to search for alternative manufacturing destinations. Read the complete blog to explore opportunities in the electronics manufacturing industry in India
The electronic devices industry in India was valued at USD 118 bn in 2019 and according to industry experts, the domestic electronic devices market in India is expected to reach USD 300 Bn by 2026. The global electronic devices market is estimated to be $ 2.9 Tn in 2020 and India contributes 3.6% to the global electronics manufacturing industry. Industry experts have predicted that India’s exports will reach USD 120 Bn in 2026. The Vision Document 2.0, prepared by the Ministry of Electronics and Information Technology (MeitY) and presented by the ICEA, emphasized that exports of USD 120 billion is critical to reach the USD 300 billion mark for electronics manufacturing, this in turn is key for the USD 5 trillion economy and the USD 1 trillion export target.
Consumer electronics segment is the largest segment in the electronics industry and it is projected to double in the next 3 years to around INR 1.48 lakh crore by 2025. The president of the CEAMA (Consumer Electronics and Appliances Manufacturers Association) has informed that India is set to become an alternative electronics manufacturing destination of China and other Southeast Asian countries. Additionally, FDI in the consumer electronics industry has also doubled to USD 490 million till June 2022 compared to 2021 according to the Consumer Electronics and Appliances Manufacturers Association.
Currently India’s domestic production of electronic components is USD 9.9 Bn. India is exporting USD 2.2 Bn worth of electronic components. Electronic component production in India rose by USD 4 bn from 2014 to 2018 and is growing at the same pace even in 2022. The electrical components sector is essential as technology is constantly developing and the industry needs to be supported by efficient supply chains to produce the immediately available supply of electronic devices that customers today demand.
This segment comprises manufacturing of industrial robots, wafer processing assembly, control systems, packaging equipment, electronic testing, semiconductor assembly, automation, measurement equipment, etc. Industrial electronics production was valued at INR 780 billion in 2021 in India and it is set to grow by leaps and bounds as it plays a vital role in major industries such as manufacturing, energy, transportation, chemicals, mining, and agriculture.
This segment deals with manufacturing of ultrasound devices, heart rate monitors, dialysis machines, X-ray machines and other electro medical equipment used in forensics, medical research, surgical procedures, diagnosis, medical imaging, etc. The medical electronics market size was valued at USD 6.3 billion in 2021 and is expected to reach USD 9 billion by 2026 because of several factors such as aging population, usage of radiotherapy therapy in diagnosis of diseases, increasing demand for portable medical devices and rise in adoption of IOT based smart medical devices.
This segment comprises manufacturing of routers, LANs, switchboards, WANs, gateways, hubs, bridges and many more. Networking and communication market size was valued at USD 511 Billion in 2021 and is expected to reach USD 934 Billion by 2030 due to rapid digitization, boom in the smartphone industry which has made companies to invest capital in communication equipment. The telecommunication industry has grown at an exponential rate in the past few years due to the reach of broadband and internet services across the globe, including rural areas.
Buoyed by the government’s INR 2.3 lakh crore policy push for self-reliant India, electronics manufacturing industry is set to grow exponentially in the next 5 years. Even though India’s population is 1.4 billion, only 700 million have a smartphone which shows that there is a huge market left. With rapid urbanization, there is a surge in demand for television, smartphones, computers and other electronic gadgets which has encouraged entrepreneurs to enter into the electronics sector. If you are looking to start and grow your electronics manufacturing industry, connect with SolutionBuggy and get all the services required to be a market leader in the electronics segment. SolutionBuggy with a team of 500 electronics consultants, provides all the services from idea ignition phase to launching your product successfully in the market.
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