Smartphone Market in India 2022 - 2027

Market insights:

The smartphone market in India reached 160.70 million units in terms of shipment in 2021. It is expected to reach 253.28 million units in 2027, expanding at a compound annual growth rate (CAGR) of 7.97% during the 2022-2027 forecast period. In 2021, 5G shipments increased by 555% year on year, with 5G smartphones accounting for 29% of total shipments. With a 25% market share, Samsung led the 5G smartphone segment, followed by VIVO with a share of 19%.

Impact of COVID-19:

In the wake of the pandemic, the government-imposed lockdown measures that reduced outdoor activities, resulting in a decline in the sale of smartphones at offline stores. The demand for smartphones surged, primarily because of remote learning, as well as a virtual social gatherings. Several people lost their jobs, while some took pay cuts. As a result, they refrained from purchasing devices with upgraded features.

Government initiatives:

Several initiatives undertaken by the government have influenced the smartphone market. The Production Linked Incentive (PLI) scheme provided all electronics manufacturing companies with registered manufacturing units with a 4% to 6% incentive on incremental sales. The Modified Electronics Manufacturing Clusters scheme offered financial incentives to mobile phone manufacturers to develop world-class infrastructure and common facilities and amenities.

Key growth drivers of the market:

The pricing pattern followed by the manufacturing companies, along with exclusive online distribution led to the spurt in demand for smartphones. Consumers' preferences have shifted from standard feature phones to smartphones because of increased internet penetration to the internet.

Key deterrents to the growth of the market:

The high usage of smartphones has led to a rise in the number of cybercrimes occurring in the country. Also, the design and technology used by smartphone manufacturing companies have not met consumer expectations