India’s Smartphone Market Poised for a $90 Billion Boom

India’s Smartphone Market Poised for a $90 Billion Boom

 

In the coming decade, India is on the cusp of a remarkable transformation in its smartphone market. The world’s second-most populous country is poised to become the world’s third-largest economy, driven by a growing digital landscape and a burgeoning consumer class. The stage is set for India to become the world’s fastest-growing smartphone market, and it’s all happening by 2032.
India’s smartphone market has long been a promising yet underperforming space. Despite its vast population, the market’s growth potential has remained largely untapped. With a current smartphone penetration of around 40%, lagging behind the global average of 60%, India’s smartphone market was waiting to reach its full potential. Most growth so far has come from budget-friendly, lower-end devices, leaving room for further expansion.
However, the winds of change are blowing across India’s economic landscape. The country’s Gross Domestic Product (GDP) is predicted to more than double over the next ten years, reaching an impressive $7.5 trillion, with an expected annual growth rate of 6.6%. Simultaneously, per-capita income is set to double, and high-income households are projected to increase fivefold by 2031.

What’s propelling this transformation? Several factors are at play. Rising urbanization and improvements in infrastructure are reshaping the consumer landscape. A survey of Indian smartphone users conducted by Morgan Stanley revealed that three-quarters of respondents intend to purchase a new smartphone in the next 12 months. Some are even considering prioritizing their smartphone over other household items, like personal computers, cars, or refrigerators.
What’s interesting is that Indian consumers are willing to invest more in their next smartphone. The survey found that they are prepared to spend up to 20% more, and the younger generation (aged 18 to 25) is open to considering a 30% premium. The desire for cutting-edge features, such as 5G compatibility, extended battery life, improved camera quality, and increased storage capacity, is driving this shift towards pricier, high-end devices.
This evolving consumer preference is creating an opportunity for non-Indian smartphone vendors, who are now catering to Indian consumers’ appetite for premium smartphones. Over the next decade, it is anticipated that 80% of India’s smartphone market growth will stem from smartphones priced over $250, in stark contrast to the past five years when this segment accounted for only about 10% of growth.

Furthermore, companies in India’s supply chain that manufacture or assemble components for these sought-after phones are also set to benefit from this shift. As smartphones become an increasingly indispensable part of daily life in India, the prioritization of smartphone purchases augurs well for smartphone vendors in the country.
If this trajectory continues, India will not only become the third-largest smartphone market in the world, following China and the U.S., but will also account for 15% of the global smartphone market value, up from its current 6%. In an even more ambitious scenario, India could be the sole growth driver in the global smartphone market over the next decade, contributing to 20% of worldwide shipments by 2032.
The implications of this transformation are profound. With a thriving economy, demographic shifts driving consumer demand, and a growing preference for premium smartphones, India’s smartphone market is poised to triple to an astounding $90 billion by 2032. This journey from lagging behind to realizing its full potential is a testament to India’s resilience, adaptability, and its unyielding march towards the future.
In the coming years, the world will undoubtedly witness India’s smartphone market reach new heights, not only as a significant player in the global tech industry but as a reflection of the changing aspirations and priorities of a billion-strong nation.

 

Leave a Comment