India Semiconductor Market to Grow at a CAGR of 19.01% Through 2029
The rise of artificial intelligence, machine learning & IoT,
and the surge in 5G demand are likely to propel the demand in the India Semiconductor
Market across the country.
According to the
TechSci Research report, “India Semiconductor Market - By Region,
Competition Forecast & Opportunities, 2019-2029.” India Semiconductor Market was valued at USD
34.4 billion in 2023 and is anticipated to project robust growth in the
forecast period with a CAGR of 19.01% owing to the rising needs for electronics
products by consumers, growing usage of artificial intelligence (AI),
supportive government initiatives, etc. across the nation.
Semiconductors are critical
components of electronics that serve as the foundation for technological
advances in critical and emerging technologies. India, the second most populous
country in the world, spends USD 180 billion on electronic goods. The country,
which has the fifth-largest economy in the world, plans to expand its domestic
semiconductor market. Furthermore, with 120 design units, India has a
well-developed semiconductor design industry, and is widely used in industries
such as automotive, communication, industrial, data processing, consumer
electronics, and others. The demand for semiconductors is expected to rise due
to the country's increasing digital transformation among consumers, businesses,
and the public sector, as well as the adoption of new technologies and the
growing demand for electronic goods.
The Indian government and
industry participants are implementing a number of initiatives to advance the
design industry and improve India's standing in the semiconductor
designing sector. Both are putting special emphasis on improving education
levels in the country to further develop expertise in design and IT. To promote
an entrepreneurial culture, government organizations including the Indian
Institute of Technology (IIT), the National Institute of Technology (NIT),
privately funded organizations such as the Indian Institute of Information
Technology (IIIT), and Indian design firms, for instance, are playing critical
roles in fostering an entrepreneurial culture. These factors are going to accelerate
the growth of the semiconductor industry.
Browse over xx market data
Figures spread through xx Pages and an in-depth TOC on the "India Semiconductor Market"
Based on application, Automotive dominated the India
Semiconductor Market The Indian semiconductor market has witnessed significant growth, with the automotive sector emerging as a dominant force. The increasing integration of advanced technologies in vehicles, such as autonomous driving, electric vehicles (EVs), and connected car solutions, has driven the demand for semiconductors. Automotive semiconductors are critical for a range of applications, including power management, safety systems, infotainment, and communication. The rise of electric and hybrid vehicles, which require complex power electronics and battery management systems, has particularly contributed to this surge. As the automotive industry transitions towards greener and more efficient technologies, the reliance on semiconductor components is set to intensify further.
Several factors contribute to the automotive sector's dominance in the Indian semiconductor market. Firstly, the Indian government’s push for electric mobility through initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has stimulated the demand for automotive semiconductors. These policies are designed to encourage the adoption of electric vehicles by providing subsidies and incentives, thereby driving the need for advanced semiconductor technologies in EV manufacturing.
The consumer preference shift towards connected and smart vehicles has accelerated the integration of semiconductor devices in the automotive industry. Modern vehicles are increasingly equipped with features such as advanced driver assistance systems (ADAS), in-car entertainment, and sophisticated navigation systems, all of which rely heavily on semiconductor technology. The demand for enhanced safety features and autonomous driving capabilities further amplifies the need for high-performance semiconductors. The growth of the automotive semiconductor market in India is bolstered by investments from global semiconductor companies and collaborations with Indian automotive manufacturers. These partnerships aim to develop and localize semiconductor solutions tailored to the specific needs of the Indian market. For instance, companies are focusing on creating cost-effective and energy-efficient semiconductor solutions that cater to the demands of the Indian automotive industry, which is characterized by a high demand for affordable and durable vehicles.
The semiconductor shortage experienced globally has highlighted the critical importance of building a robust and self-reliant semiconductor supply chain within India. The Indian government's emphasis on boosting domestic semiconductor manufacturing through policies like the Production Linked Incentive (PLI) scheme is expected to further strengthen the automotive semiconductor sector. This initiative aims to attract investments in semiconductor manufacturing and create a sustainable ecosystem for semiconductor production in the country.
The automotive sector's dominance in the Indian semiconductor market is driven by technological advancements, government initiatives, and strategic collaborations. As the industry continues to evolve with innovations in electric mobility, autonomous driving, and connected car technologies, the demand for automotive semiconductors is poised to grow exponentially, cementing its leading position in the Indian semiconductor landscape.
Key market players in the India
Semiconductor Market include:
- Broadcom Inc.
- CHIPLOGIC TECHNOLOGIES
- Tata Elxsi Limited
- Continental Device India Pvt. Ltd., (CDIL)
- MosChip Technologies Limited
- NXP B.V.
- ASM Technologies Limited
- Masamb Electronics Systems Private Limited
- Semi-Conductor Laboratory
- ROHM Co., Ltd.
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“The growing usage of semiconductors in various sectors
including for safety, electrification, communication, and connection is
expected to increase as the production and adoption of electric vehicles (EV)
grow in India. These factors are expected to boost the semiconductor industry in
India during the forecast period. Additionally, various investments by the
union government and market players in the semiconductor industry is likely to
propel the market of India semiconductor market in the upcoming years. For
instance, IBM and STMicroelectronics decided to set up India's first
chip-making plant with an investment of USD 7.91 billion permitted by the
Government of India. Therefore, the market for semiconductor across the country
is expected to rise in the forecast period 2024-2029F.” said Mr Karan Chechi,
Research Director with TechSci Research, a research-based global management
consulting firm.
“India Semiconductor Market Segmented By Component (Memory
Devices, Microprocessors, Analog IC, Sensors, Discrete Power Devices, Others),
By Application (IT & Telecom, Automotive, Consumer Electronics, Other
Industries), By Type (Extrinsic Semiconductor, Intrinsic Semiconductor), By Region,
Competition Forecast & Opportunities, 2029F”, has
evaluated the future growth potential of an India semiconductor market and
provides statistics and information on market structure, size, share, and
future growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges and opportunities in the India semiconductor market.
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