Frost & Sullivan, Telecom News, ET Telecom
NEW DELHI: India’s mobile phone market, comprising feature phones and smartphones, is expected to generate revenue of Rs 2.4 trillion by FY26, up from Rs 1.4 trillion in FY22 , according to a Frost & Sullivan report released Wednesday.
According to the research firm, revenues will increase by 14.5% compounded annually. He attributed the growth to growing internet penetration and falling smartphone prices.
In contrast, demand for smartphones is declining globally, the company observed. “The Indian mobile phone market remains under-exploited and growing. This presents substantial opportunities for every participant in the mobile value chain.
In terms of volume, the Indian mobile phone market consisted of 255 million units in FY22, which is expected to grow at a CAGR of 9.7% to reach 370 million units by fiscal year 26, according to the report.
Chinese brands, such as Xiaomi, Oppo, Vivo, Realme, and OnePlus, accounted for 71% of India’s smartphone market share in FY22, while foreign (excluding China) and Indian brands accounted for 25 % and 4% remaining, respectively. he added.
Market research firms have predicted the Indian smartphone market to grow 5-10% annually in 2022, even though global smartphone shipments will decline 3-3.5% this year.
“Government mandates and support in terms of legislative and financial incentives are critical for the mobile phone market, influencing its growth,” said Rajkumar Elilarasu, Principal Consultant, Industry Practice at Frost & Sullivan. “In addition, the government’s Production Linked Incentives (PLI) program helps mobile phone manufacturing companies increase their sales year-on-year. Currently, India is the second largest exporter of mobile phones and is fast becoming a global manufacturing hub. Rajkumar added that the country has the potential to export mobile phones worth $100 billion and components worth $40 billion by FY26. “Indian-made phones are popular in the Middle East and North Africa region, providing India with huge export market potential as well as domestic sales,” he said.