Indian semiconductor market to reach US$ 55 billion by 2026: Deloitte

The industry’s growth will be driven by factors including an increase in semiconductor content, adoption of 5G, the Internet of Things, and increasing data storage requirements

February 28, 2023

More than 60% of the semiconductor market in India will be driven by smartphones and wearables, automotive components, and computing and data storage

The industry is expected to reach a market size of US$ 85 billion and employ 600,000 people by 2030

The industry is expected to play an important role in enhancing the global value chain of semiconductors and chip technologies

India is also expected to become a major player in 5G, live sports, and Advertising-based Video on Demand (AVOD)

The Indian semiconductor market is set to achieve a valuation of US$ 55 billion by 2026, according to a report from global consultancy firm Deloitte.

The report states that more than 60% of the semiconductor market in India will be driven by three industries: smartphones and wearables, automotive components, and computing and data storage. The industry is expected to play an important role in enhancing the global value chain, expanding to a market size of US$ 85 billion and generating employability for 600,000 people by 2030. 

Experts said that the semiconductor chip shortage over the past two years has amplified the importance of the industry, presenting India with a unique opportunity to become the next big manufacturing destination. They further mentioned that the industry’s growth would be driven by factors including increased semiconductor content, adoption of 5G, the Internet of Things, and increasing data storage requirements. The sector is further poised to attract investment, talent, and bilateral relations focusing on supply chain, resilience, and localisation setting in India.

Furthermore, the report also mentioned that India is expected to become a major player in 5G, live sports, and Advertising-based Video on Demand (AVOD), as private deployment networks are likely to gain significant traction from 2025-2028. 

Source: Economic Times

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