The Indian mobile phone market, which includes feature phones and smartphones, is anticipated to generate Rs 2.4 trillion in sales by FY26, up from Rs 1.4 trillion in FY22, according to a Frost & Sullivan research published on Wednesday.
The research firm anticipates annual compound sales growth of 14.5%. This expansion was attributed to rising internet usage and dropping smartphone prices.
In contrast, smartphone demand is waning worldwide, the firm observed. “The Indian mobile phone market remains underpenetrated and is growing. This presents substantial opportunities for every mobile value chain participant.”
The volume of smartphones sold in India was 255 million units in FY22, and by FY26, it is projected to grow at a CAGR of 9.7% to 370 million units.
According to the survey, Chinese firms controlled 71% of the Indian smartphone market share in FY22, including Xiaomi, Oppo, Vivo, Realme, and OnePlus. The remaining 25% and 4%, respectively, were made up of foreign brands (excluding China) and Indian brands.
Market research companies forecast that the India smartphone sector will grow 5-10 percent annually in 2022, despite the fact that the global shipment of smartphones is predicted to decline by 3-3.5% this year.
“The PLI schemes are a great way to bring in outside investments to the country and we think it’s quite a good initiative from the government’s end, and definitely help the country become a global manufacturing hub further creating new jobs and opportunities for the Indian citizens. It’s quite a promising proposition and we look forward to the impact it has on the economy.”
“Government mandates and support in terms of legislative and financial incentives are critical for the mobile phone market, influencing its growth,” said Rajkumar Elilarasu, Senior Consultant, Industrial Practice at Frost & Sullivan. “Additionally, the government’s Production-Linked Incentive (PLI) scheme is helping mobile manufacturing companies increase their year-on-year sales. Currently, India is the second-largest exporting nation for mobile phones and is fast becoming a global manufacturing hub.”
Rajkumar went on to suggest that by FY26, the country would export mobile phones for $100 billion and the parts that make up those phones for $40 billion.