India Smartphone Market 2024–2033

Reports Description

India Smartphone Market was valued at USD 44.15 Billion in 2023 and is expected to reach USD 88.99 Billion by 2032, at a CAGR of 8.1% during the forecast period 2023 – 2032.

Smartphones are mobile devices and cellular telephones with integrated computer technology. Smartphone combines the functionality of a traditional mobile phone with advanced computing capabilities.

Smartphone has many advanced features such as an operating system (OS), web browsing and the ability to run software applications. Smartphones are used by consumers and as part of a person’s business or work. India currently has 931 Mn+ smartphone users and this number is expected to reach 1.1 Bn+ by 2025.

India Smartphone Market: Growth Factors

Indian Smartphones industry is mainly driven by various factors such as increasing disposable income, increasing youth population, growing internet penetration, and growing demand for advanced computing devices among the working population.

The economic growth in the country increasing the disposable income of people, with this growing disposable income the demand for smartphones is also increasing. To keep up with this increasing demand smartphone companies are expanding and developing their distributional channels across rural and urban India.

India’s GDP is expected to more than double over the next ten years’ decade, reaching USD 7.5 trillion with an expected annual growth of 6.6%. At the same time, per-capita income is expected to double, and the country is projected to have five times as many high-income households by 2031.

The working population is rapidly increasing and propelling the demand for advanced computing devices like smartphones.

The increasing internet penetration and growing integration of various emerging technologies in Smartphones such as Artificial Intelligence, the Internet of Things and other personification technologies is increasing the adoption of smartphones among working and young populations.

Furthermore, the frequent introduction of a variety of smartphones with advanced features by key players operating in the market, and the effective advertising and marketing strategies of smartphone brands all contribute to the growth of the India smartphone market.

Many international players such as Apple, Samsung, Google Pixel, and Microsoft are introducing advanced smartphones and heavily investing in the Indian smartphone market. For instance, according to Custom Market Insights Study, Apple and its suppliers have ambitious plans to manufacture over 50 million iPhones in India every year within the next two to three years.

This plan is part of Apple’s strategy to reduce its dependence on China and diversify its supply chain. If successful, India would account for a quarter of global iPhone production by the end of the decade. In November 2023, Foxconn, one of Apple’s key suppliers, showed its commitment to India by announcing an investment of USD 1.5 Billion in India to manufacture smartphones and strengthen the supply chain. Thus, such investments are expected to boost the growth of India Smartphone market during the forecast period.

India Smartphone Market: Restraints

Factors such as less adoption in rural areas, stringent government regulations about data privacy, semiconductor shortage in India, fluctuation in raw materials prices, growing counterfeiting of smartphones, and higher prices of smartphones are restraining the market growth during the forecast period.

However, by applying the right pricing strategies, increasing domestic semiconductor production, and effectively coping with government regulations companies can tackle the above mentioned strategies and increase their market share.

India Smartphones Market: Opportunities

The growing popularity of the E-commerce sector in urban, semi-urban and rural are expected to create lucrative opportunities for market growth during the forecast period. The growth of e-commerce and online retail platforms such as Flipkart, amazon and respective company’s websites has made smartphones easily accessible to a broader audience.

The growing popularity of online purchasing due to alluring discount offers and easy and instalment payment options is boosting the sales of smartphones. Online shopping provides convenience and opens up new markets for smartphone companies. Thus, the growing popularity of online purchasing is expected to create lucrative opportunities for the market during the forecast period.

India has a spectacular youth population when compared to other developing countries. This young population is major consumers of smartphones especially people who are aged between 18-45. Thus, increasing demand for smartphones among the young population in India is expected to create lucrative opportunities for the market during the forecast period.

Furthermore, supportive government policies and initiatives such as the Production Linked Incentive Scheme and The ‘Make in India’ initiative of the Indian government and multiple subsidies for local manufacturing are attracting global players in the Indian Market.

Recently, the Ministry of Electronic and Information Technology proposed incentives for local smartphone manufacturers in the country. Thus, such supportive government policies and initiatives are expected to create lucrative opportunities for the market during the forecast period.

India Smartphone Market: Segmentation Analysis

India Smartphone market is segmented by operating system, by price, by distribution channel and by region.

By operating system, the India Smartphone market is segmented into Android, iOS, Windows and others. Among all of these operating systems, the Android segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period.

Android operating system is developed by Google and it is utilized in almost every phone except Apple. This operating system offers various features such as an open system, customizable options, and timely system updates and it is cost effective. The iOS operating system segment is expected to grow exponentially during the forecast period owing to increasing demand for Apple phones.

By price, Indian smartphone market is segmented into premium and mass price ranges. Among these, the Mass price segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period. The mass price range varies between INR 3000- and INR 35,000.

The major key players operating in this price range include Vivo, Redmi, OPPO, Samsung, Real me etc. The volume sales of these brands is rapidly increasing among students and middle class population. The premium price range varies between INR 25,000 onwards.

The major key players operating in this price range include Samsung, One Plus, Apple among others. These smartphones offer various advanced features and are mostly preferred by affluent demographics in India.

By Distribution channel, the market is segmented into Online and Offline. Among all these segment, Offline segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period. Offline segment includes OEM Stores, Retails, Speciality Stores and Others. An increasing presence of these channels across India is mainly propelling the growth of this segment.

However, the Online segment is expected to grow at the highest CAGR during the forecast period. The online segment includes third party websites and company owned websites. Increasing internet penetration and alluring discounts offered by E-commerce platforms are propelling the market growth of this segment during the forecast period.

Report Scope

India Smartphone Market: Regional Analysis

By region, India Smartphones market is segmented into North India, South India, East India, and West India. Among all these regions, North India held a significant market share of India smartphone Market in 2022 and is expected to grow at a significant pace during the forecast period.

States like Uttar Pradesh, Delhi, Punjab, Haryana, Uttrakhand, and J&K are playing crucial roles in the market growth of this region. Uttar Pradesh has the highest number of smartphone users in India. It is one of the most populous states in India representing the third largest economy in India.

South India is expected to hold a significant market share in the India smartphone market. Increasing disposable income in states like Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, and Kerala is mainly propelling the market growth of this region.

West India is expected to emerge as a potential region during the forecast period. States like Maharashtra, Gujrat, and Madhya Pradesh are playing a major role in driving the growth of this region. Increasing consumption of smartphones products in major metro cities like Mumbai, Ahmadabad, Pune, Nagpur, Surat, Indore, Bhopal etc. is propelling the market growth of this region.

India Smartphones Market: Recent Developments

• Apple had a stellar year, finishing at 9 million units, despite having the highest ASP of USD 940. This was led by previous generation iPhone models and its push for local manufacturing. Its iPhone 13/14 were among the Top 5 shipped models annually.

• Samsung remained in the leadership position, with a record high ASP of USD 338, although with a 5% shipment decline YoY. Its Galaxy A14 was the highest shipped device in India in 2023.

• In 2023, Vivo (excluding iQOO) climbed to the second slot as shipments and ASPs both grew by 8% and 9% respectively. It was the only brand to register growth amongst the top five brands.

• In 2023, OPPO has shifted focus and is launching higher-priced models to prioritise profit margins over volume.

• Realme, despite facing challenges at the beginning of the year, maintained its third position, led by affordable launches.

• In Oct 2023, The Indian smartphone market also witnessed the re-entry of HONOR via a strategic joint venture route with HTech and launched its HONOR 90 model.

• Tata Group is also planning to build an iPhone assembly plant in Tamil Nadu. The facility is expected to have approximately 20 assembly lines and employ 50,000 workers within the next two years. This move will strengthen Apple’s partnership with Tata, which already owns an iPhone factory in Karnataka.

 List of the prominent players in the India Smartphone Market:

• Samsung
• Vivo
• Realme
• Xiaomi
• OPPO
• Apple
• One Plus
• Poco
• Infinix
• Tecno
• Lenovo
• Sony Corporation
• ZTE Corporation
• HTC Corporation
• Motorola
• Nokia
• Bharat Jio
• Asus
• Google Pixel
• Microsoft
• Honor
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Smartphone Market is segmented as follows:

By Operating System

• Android
• iOS
• Windows
• Others

By Price

• Premium
• Mass

By Distribution Channel

• Online
• Offline
• OEM Stores
• Retails
• Speciality Stores
• Others