Aiming to raise the electronics manufacturing capability by 24 lakh crore by 2026, the government will work in partnership with all states for supporting startups and entrepreneurs keen on investing in this sector, Union Minister of State for Electronics & IT, Rajeev Chandrasekhar said.
Speaking at a function here as part of the ‘New India for Young India’ initiative, Chandrasekhar said that young Indians are driving the progress in India’s techade.
1. Growth in Mobile Phones
The growth in mobile phones is a major indicator of the digital revolution. The majority of Americans – 97% – now own at least one mobile phone, and the share of smartphone ownership is expected to continue growing.
The Indian market has a significant opportunity with 320 million feature phone users and an entry-level smartphone from Jio set to launch soon. If the low-cost smartphone succeeds, India will enter a hyper growth phase for smartphones.
The smartphone segment is likely to grow at a CAGR of 6 per cent from 2021 to 2026, according to a new report by Deloitte. The increase is driven by rural adoption, which has a higher need for fintech, e-health, and e-learning.
2. Growth in LED Lighting
LED lighting is a rapidly growing market in India because of its cost-effectiveness and energy savings. It has also gained a strong foothold in the residential and commercial sectors.
The growth of this industry is fueled by various government initiatives and schemes. These include Unnat Jyoti by Affordable LEDs for All (UJALA), SLNP, and Smart Building National Programme.
Moreover, the increasing urbanization and growing population in India contribute to the demand for lighting products. Hence, the growing demand for LED lights is expected to drive the LED lighting market in the country during the forecast period.
Despite its rapid growth, the Indian LED lighting market faced many challenges. These challenges were primarily related to the lack of proper knowledge among customers about LED light bulbs and their benefits. In addition, there were high up-front costs and limited technical capacities.
3. Growth in Automotives
The automotive industry is a major contributor to the global economy and offers a wide range of opportunities for players across the world. Growth in the automotives sector is driven by the increase in sales of new vehicles, strict government regulations aimed at reducing vehicle emission and technological advancements.
Increasing the number of vehicles on the road and rising consumer awareness towards safety features demand the use of automotive electronics components in automobiles. These electronic components are used in telematics, infotainment system, music systems, radios, parking ability and anti-lock braking systems.
The automotive electronics market is expected to grow at a significant rate over the forecast period. The growing adoption of hybrid and electric vehicles, escalating demand for infotainment systems and the surging implementation of advanced driver assistance system (ADAS) are some of the key factors driving the market growth.
4. Growth in Aerospace
Aerospace is one of the fastest-growing markets for electronics manufacturing services. This market is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2020 through 2025.
As technology advances, the aerospace industry will continue to rely on electronic systems for a variety of applications, including fuel conservation and flight control. This demand will be a huge driving force for electronics design and manufacturing services.
This industry demands top-tier expertise, which means contract manufacturers must have a strong AS9100 certification to meet the unique quality standards of this complex and challenging sector. OEM executives should be on the lookout for contract manufacturers with these certifications when sourcing out work.
5. Growth in Consumer Electronics
The consumer electronics industry is an important segment of the electronic manufacturing sector. It produces products such as mobile phones, laptops, television sets, refrigerators, and home appliances.
The global market for consumer electronics has been witnessing a strong growth over the past few years. This trend is driven by the increase in disposable income and the growing population worldwide.
In addition to this, technological advancements and inclination towards smart devices are also driving the demand for consumer electronics across the world. Moreover, rising disposable income in emerging economies is expected to boost the market over the forecast period.
The market for consumer electronics is expected to grow rapidly in the next few years. With a rapid emergence of technological innovations, consumers are now looking to purchase new devices to make their lives easier and more convenient.