India Mobile Components Market Size was valued at USD 53.8 Billion in 2022. The Mobile Components market industry is projected to grow from USD 63.0 Billion in 2023 to USD 224.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.20% during the forecast period (2024 - 2032). The rapid growth of domestic manufacturing and assembly facilities spurred by the significant and expanding demand for mobile phones in India and favorable business initiatives by the government are the main market drivers anticipated to propel the Mobile Components market in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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 India Mobile Components market segmentation, based on Mobile Type, includes Smartphones, Feature Phones, and Other Phones. The smartphones segment dominated the market mostly. Following government restrictions on social distancing and lockdown measures, there was a notable 39% increase in the average time spent by Indian users on smartphones. According to a report by App Annie, India ranked third globally, with users spending an average of 4.6 hours per day on smartphones, with Indonesia (5.2 hours per day) and Brazil (4.8 hours per day) occupying the top two positions. The sale of smartphones through online channels saw a surge in 2020 due to COVID-19 lockdowns. IDC reported a 12% year-on-year growth in online channel sales, contributing 48% to total sales in 2020. However, during the festive season, particularly during Diwali, there was an increase in foot traffic in physical stores, leading to a 5% year-on-year growth in offline channel sales in the fourth quarter of 2020.
Figure 1: India Mobile Components Market, by Mobile Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India Mobile Components market segmentation, based on Mobile Components, includes Main Board and Sensor Flex, Display/Touchscreen, Camera (Primary/Secondary), Battery Pack, and Others. The Main Board and Sensor Flex category generated the most income. Flex PCBs offer a significant advantage due to their flexibility, allowing them to bend, twist, and fold to fit into tight or unconventional spaces where rigid boards cannot. Their thin and lightweight nature makes them particularly suitable for applications where space and weight are crucial considerations, facilitating the creation of compact and lightweight electronic devices.
The India Mobile Components market segmentation, based on Assembly and Domestic Manufacturing, includes Assembly and Domestic Manufacturing. The Assembly category generated the most income. Local assembly of mobile phones in India proves to be more economical than importing fully assembled devices, primarily due to the comparatively lower labor costs in the country. Moreover, this practice enables mobile manufacturers to mitigate expenses associated with import duties and shipping.
With a population surpassing 1 billion people and increasing levels of disposable income (per capita income rising to approximately Rs. 95,000 or US$ 1301 in 2019 from about Rs. 73,000 or US$ 1000 in 2015), India emerges as one of the most attractive markets for smartphones. According to Counterpoint Research, smartphone shipments are projected to reach 173 million in 2021, marking a growth of around 14% compared to 2020. Despite 5G smartphones constituting less than 3% of the overall market in 2020, India has already become a leading market for the shipment of 5G smartphones. Even in the absence of widespread 5G network deployment, the demand for 5G-enabled devices remains robust, with estimated shipments ranging between 32 million and 40 million units in 2021. Aligned with the broader 'Make in India' initiative and the National Policy on Electronics 2019 (NPE 2019), the incumbent government aims to position the country as a global manufacturing hub, with electronics manufacturing being a key focus area. Introduced in 2020, the Production-Linked Incentive (PLI) scheme offers incentives ranging from 4% to 6% on incremental sales of mobile phones manufactured in India to eligible companies for five years starting from the base year (2019-20). Companies manufacturing high-end handsets or devices priced above Rs. 15,000 (~US$ 200) must achieve sales worth Rs. 4,000 crore (~US$ 550 million) or more to qualify for the subsidy in the fiscal year 2020-21. In April 2021, the government extended the PLI scheme until 2025-26, providing a one-year extension from the initial deadline of 2024-25, and allowed companies to select their base year as either 2019-20 or 2020-21. Approximately 16 applications from both domestic and multinational companies have been cleared by the government, with the total outlay estimated to exceed Rs. 40,000 crores (~US$ 5.5 billion).
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.
December 2020: TATA GROUP Plans to invest approximately Rs. 11,000 crores (~US$ 1.5 billion) for establishing a new mobile phone and component manufacturing facility in Tamil Nadu, aiming to capitalize on the government's PLI scheme.
August 2020: Samsung announced plans to invest approximately Rs. 3.7 lakh crore (~US$ 50 billion) in India within the next five years to initiate phone manufacturing operations. The company aims to manufacture phones valued at Rs. 2.2 lakh crore (~US$ 30 billion), priced above Rs. 15,000 (~US$ 200), under the PLI scheme.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 53.8 Billion |
| Market Size 2023 | USD 63.0 Billion |
| Market Size 2032 | USD 224.4 Billion |
| Compound Annual Growth Rate (CAGR) | 17.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Mobile Type, Mobile Components, Assembly and Domestic Manufacturing, and Region |
| Countries Covered | India |
| Key Companies Profiled | 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 |
| Key Market Opportunities | ·        Increasing government efforts under the 'Make in India' initiative, manufacturers are embracing new technologies. |
| Key Market Dynamics | ·        The rising demand for smartphones and other electronic devices |
Frequently Asked Questions (FAQ) :
The India Mobile Components market size was valued at USD 63.0 Billion in 2023.
The market is projected to grow at a CAGR of 17.20% during the forecast period, 2024-2032.
The key players in the market are 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, and Intex Technologies.
The Smartphones category dominated the market in 2023.
The Main Board and Sensor Flex category had the largest share of the market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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