India Mobile Components Market

• Rising internet penetration, increasing digital literacy, and government push are driving the market growth

Due to rapid internet penetration, rising disposable incomes, and a large base of tech-savvy consumers, India has emerged as the world's second-largest manufacturer of mobile phones. The burgeoning demand for mobile devices has spurred the rapid development of domestic manufacturing and assembly units within the country. The 'Internet in India Report 2022' released recently highlighted that out of 759 million 'active' internet users in India, 399 million are from rural areas and 360 million from urban areas, indicating that rural India continues to drive internet growth.

A significant portion of the Indian population, about 52% or 759 million people, accessed the internet at least once a month in 2022, as reported by IAMAI. This number is expected to reach 900 million by 2025.

With increased government efforts under the 'Make in India' initiative, manufacturers are embracing new technologies to offer innovative mobile phone components. Ahead of the Union Budget 2024, the Indian government reduced import duties on key components used in mobile phone manufacturing from 15% to 10%. This move is expected to benefit companies like Apple and Xiaomi in establishing manufacturing operations in Asia's third-largest economy. 

In May 2017, the Indian government introduced the Phased Manufacturing Programme (PMP) to encourage domestic production of mobile handsets. From just two mobile phone factories in 2014, India has now become the world's second-largest mobile phone producer. The Central Government aims to increase electronics manufacturing capacity to Rs. 24 lakh crore by 2025-26, thereby creating over 10 lakh jobs. Therefore, the market CAGR is growing due to the rising internet penetration, increasing digital literacy, and government push. Thus, driving the Mobile Components market revenue.

The Global India Mobile Components Market Industry is poised for substantial growth, with projections indicating a market size of 25 USD Billion in 2024 and an anticipated increase to 65 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.07% from 2025 to 2035, reflecting the industry's resilience and adaptability to changing consumer preferences and technological advancements. The increasing demand for mobile devices, coupled with supportive government policies and a focus on innovation, positions the Indian mobile components sector as a key player in the global market.

Technological advancements play a pivotal role in shaping the Global India Mobile Components Market Industry. Innovations in areas such as 5G technology, artificial intelligence, and IoT are driving the demand for advanced mobile components. As manufacturers strive to integrate these technologies into their devices, the need for high-performance components becomes paramount. This trend is likely to stimulate research and development efforts within the industry, fostering a cycle of continuous improvement and innovation. The anticipated compound annual growth rate of 9.07% from 2025 to 2035 underscores the potential for growth driven by technological evolution in mobile components.

The emergence of e-commerce platforms is significantly influencing the Global India Mobile Components Market Industry. With the rise of online shopping, consumers are increasingly purchasing mobile devices and components through digital channels. This shift not only enhances accessibility but also drives competition among manufacturers to offer better products at competitive prices. E-commerce platforms facilitate a broader reach for manufacturers, enabling them to tap into previously underserved markets. As online sales continue to grow, the demand for mobile components is expected to rise, further contributing to the industry's expansion.

The Global India Mobile Components Market Industry is experiencing a surge in smartphone penetration, which is projected to reach 1.5 billion users by 2024. This growth is driven by increasing affordability and accessibility of mobile devices across diverse demographics. As more consumers adopt smartphones, the demand for mobile components such as processors, displays, and batteries is expected to rise significantly. This trend not only boosts local manufacturing but also attracts foreign investments, further enhancing the industry's growth potential. The market is anticipated to be valued at 25 USD Billion in 2024, reflecting the robust consumer interest in mobile technology.

The Global India Mobile Components Market Industry benefits from various government initiatives aimed at promoting domestic manufacturing and reducing import dependency. Programs like Make in India and Production Linked Incentive schemes encourage local production of mobile components, thereby fostering innovation and job creation. These initiatives are likely to enhance the competitive landscape, attracting both domestic and international players. The government's focus on creating a conducive environment for manufacturing is expected to drive the market's growth, with projections indicating a market size of 65 USD Billion by 2035. Such policies are instrumental in positioning India as a global hub for mobile component manufacturing.

The Global India Mobile Components Market Industry is witnessing a growing demand for wearable devices, which are increasingly integrated with mobile technology. As consumers seek more connectivity and health monitoring solutions, the market for wearables is expanding rapidly. This trend necessitates the development of specialized components such as sensors, batteries, and connectivity modules. The rise in health consciousness and fitness tracking is likely to propel this segment further, creating new opportunities for manufacturers. The increasing integration of wearables with smartphones suggests a symbiotic relationship that could enhance the overall market landscape.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Mobile Components market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Mobile Components industry must offer cost-effective items.

Major players in the Mobile Components market are attempting to increase market demand by investing in research and development operations, including Samsung Electronics Co. Ltd., Xiaomi Corporation, Lenovo Group Ltd., Micromax Informatics Limited, Oppo Guangdong Mobile Communications Co. Ltd., Vivo Mobile Communications Co. Ltd., Lava International Limited, Karbonn Mobiles, Intex Technologies.