Rising Internet Penetration and Falling Smartphone Prices Drive India’s Mobile Phone Market

“Government mandates and support in terms of legislative and financial incentives are critical for the mobile phone market, influencing its growth,” said Rajkumar Elilarasusenior consultant, industrial practice at Frost & Sullivan. “In addition, the government’s Production Linked Incentive (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 rapidly becoming a global manufacturing hub.”

Rajkumar added: “India has the potential to export mobile phones for around $100 billion and components worth $40 billion by FY26. India-Manufactured phones are popular in the Middle East and North Africa region, offering India considerable export market potential as well as domestic sales.”

To take advantage of the growth prospects provided by india mobile phone market, manufacturers should:

  • Focus on cell phones with advanced features: The growing demand for affordable cell phones with higher processing speeds, RAM size and storage presents lucrative growth opportunities.
  • Focus on the design of applications specific to mobile manufacturers (apps): Mobile phone users in India downloaded about 20 billion apps in 2021, and forecasts predict that this number will grow to more than 35 billion downloads by 2025. This growing demand may pave the way for original equipment manufacturers (OEMs) to develop their own apps.
  • Explore contract manufacturing: OEMs can manufacture for other brands with their manufacturing setups to gain scale advantages. This will provide additional revenue streams and maximize the ROI of manufacturing facilities.
  • Approaching urban and rural markets: The online presence of OEMs drives sales in urban areas, while an offline presence is key to reaching customers in rural areas.
  • Use the growing adoption of 5G mobiles in India: The 5G mobile phone market is expected to peak after the government launches 5G frequency bands, expected by the end of 2022.
  • Focus on exports to establish a global footprint: The Indian government’s PLI program is expected to increase the total number of mobile phone brands exporting from India and help them generate more export revenue in addition to domestic sales revenue.

Mobile growth opportunities in India is the latest addition to Frost & Sullivan’s industrial automation research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous stream of growth opportunities to succeed in the unpredictable future.

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Mobile growth opportunities in India
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