“Government mandates and support in terms of legislative and financial incentives are critical for the mobile phone market, influencing its growth,” said Rajkumar Elillarasu, Senior Consultant, Industrial Practice at Frost & Sullivan. “Additionally, the government’s Production-Linked Incentive (PLI) scheme is helping mobile manufacturing companies increase their year-on-year sales. Currently, India is the second-largest exporting nation for mobile phones and is fast becoming a global manufacturing hub.”
Rajkumar added: “India has the potential to export mobile phones worth about $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 along with domestic sales.”
To tap into the growth prospects brought about by indias booming mobile phone market, manufacturers should:
- Focus on mobile phones with advanced features: The rising demand for affordable mobile phones with higher processing speeds, RAM size, and storage presents lucrative growth opportunities.
- Emphasize designing mobile manufacturers’ own applications (apps): Mobile phone users in India downloaded an estimated 20 billion apps in 2021, with forecasts predicting this number to increase to over 35 billion downloads by 2025. This growing demand can create a pathway for original equipment manufacturers (OEMs) to develop their own applications.
- Explore contract manufacturing: OEMs can manufacture for other brands with their manufacturing setups to attain scale advantages. This will provide additional revenue streams and maximize the return on investment of manufacturing facilities.
- Address urban and rural markets: OEMs’ online presence boosts sales in urban areas, whereas an offline presence is vital to reach customers in rural areas.
- Utilize the increasing adoption of 5G mobiles in India: The 5G mobile phone market is likely to spike after the launch of 5G spectrum bands by the government, which is expected by the end of 2022.
- Emphasize exports to establish a global footprint: The Indian government’s PLI scheme is expected to increase the total number of mobile brands exporting from India and help them generate more export revenue besides domestic sales revenue.
Indian Mobile Phone Growth Opportunities is the latest addition to Frost & Sullivan’s Industrial Automation research and analyzes available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Indian Mobile Phone Growth Opportunities
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SOURCE Frost & Sullivan