SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 67

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NET ZERO IMPORTS

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ESDM and IT hardware
Within the sphere of manufacturing, the Electronic System
around 45 percent of the total market demand, which leaves a
Design and Manufacturing( ESDM) sector holds a prominent
wide demand-supply gap to be filled and provides a significant
place in the Indian economy. The electronics market of India is
opportunity to improve domestic manufacturing capabilities.
one of the largest in the world. Spurred by factors such as
The estimated production will reach USD 104 billion by the year 2020,
higher real disposable incomes, easy consumer credit, falling
6 creating a gap of USD 296 billion in demand and production. This is a
prices of the products and their increasing penetration and
serious cause of concern, because growing at this rate, the
growing consumer and industrial base, it is expected that by
electronics import bill is expected to far exceed the oil import
2020, the market will increase with a CAGR of 66.1 per cent to
costs by 2020 and result in a major balance of payments crisis.
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USD400 billion from USD31.6 billion in 2015. Reaching
US $ 400 billion in market size by 2020 is the true potential of
Electronics Demand and Production
India’ s ESDM industry.
Expected Growth of Indian Electronics Market
400
CAGR-37 %
Demand & Production
450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0
69.6 CAGR-15 %
92.5 0.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Year
Value in US $ bn
Production is characterized by low value addition( 5-10 %)
Demand CAGR-24.4 %
However, domestic electronics production accounts for only
IT hardware sector
India’ s electronic products industry can be divided into the following broad end-user segments:
Segment
Consumer electronics
Automotive electronics
Industrial electronics
IT systems and hardware
Telecom products and equipment
Other electronics
Products covered
TVs( CRT and FPD), DVD players, set-top boxes, home theatre systems, MP3 players, audio equipment, digital cameras and other household appliances
Electric vehicles, power windows, anti-brake locking systems, remote keyless entry, twowheeler( 2W) ignition units, flashers, regulators, instrument clusters( 2W, 4W), engine management system 4W and car radios
Power electronics, LED lighting, CFL, energy meters, UPS, inverters, weighing scales, power supplies
Desktops, notebooks, tablets, monitors, servers, storage flash memory cards, USB drives, printers / MFDs, mobile handsets
Fixed-line and mobile telecommunication equipment, modems, routers, switches, IP PBX, BTS( GSM, CDMA), WiMax( BTS, CPE), PON / GPON ONT / OLT and DWDM
Aerospace, strategic electronics including defence, medical electronics and smart cards
IT Products constitute a significant part of the Electronics
across the globe.
7 market in India. Direct and Indirect IT products together
The chart given below shows the split of the IT electronic
contribute close to 20 % of the total market.
products in India and in
This study focuses on
the global IT electronics
a few products from
industry. Though the
US $ Billions %, 2014
the ESDM sector,
overall industry is worth
100 %
655
17
collectively called IT
more than USD655 billion,
PCs
12 %
12 %
electronics goods.
India’ s contribution has
NBs
19 %
17 %
These goods are
been approximately 3 %. In
Tablets
11 %
4 %
smartphones, tablets,
addition, it is quite
notebooks and
apparent that PCs or
desktops which form
Desktops and Notebooks
Smartphone
58 %
67 %
the backbone of all IT
hold significantly higher
related industries
shares and are bigger
Market size of IT electronics industry: World vs. India
Worldwide India
Spotlight on Indian Electronics 2016 | 67