India Semiconductor Materials Market to Boost in Coming Years – Projected to Reach worth USD 167.85 billion by 2029

Published | 29 June 2023

The primary factor is the increasing adoption of electronic devices and the country's expanding middle-class consumer base will likely drive the growth of the market over the forecast period. Furthermore, rising demand for smartphones, tablets, and IoT devices will likely increase the need for semiconductors and related materials which will further drive market expansion throughout the forecast period.

A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the India Semiconductor Materials Market was worth USD 40.66 billion in 2022 and is anticipated to reach USD 167.85 billion by 2029 at a CAGR of 22.65% (2023-2029). The India semiconductor materials market is experiencing rapid growth driven by factors such as the increasing adoption of electronic devices and the country's expanding middle-class consumer base. With the rising demand for smartphones, tablets, and IoT devices, the need for semiconductors and related materials is on the rise. Additionally, the government's push to establish a self-reliant manufacturing ecosystem and attract investments in the semiconductor sector further propels the market's growth.

As India continues to witness advancements in technology and rising consumer demand, the semiconductor materials market is expected to flourish in the coming years. Apart from this, the government of India is taking numerous initiatives to encourage the adoption of semiconductor materials. The government remains focused on its vital goal of establishing an overall semiconductor ecosystem that would stimulate India's fast-expanding electronics manufacturing and innovation environment. This AtmaNirbharta vision in electronics and semiconductors was given additional impetus by the Union Cabinet chaired by the honorable Prime Minister approving the Semicon India program with a total outlay of INR 76,000 crore for the development of our country's semiconductor and display manufacturing ecosystem. The program's goal is to provide financial assistance to companies that invest in semiconductors, display production, and the design environment. This will pave the road for India's increased participation in global electronics value chains. This will further create ample opportunities for market growth in India.

Growing automotive industry drives the market growth

The rapid growth of the automotive industry in India is a key driver of the semiconductor materials market in the country. According to the data provided by Financial Express, the automobile and auto component industry in India is projected to be worth more than $222 billion (Rs1,830,834 crore). The sector accounts for 7.1% of the country's GDP (2021) and 49% of manufacturing GDP. Riding the green mobility trend, India has seen an exponential increase in car electrification. India increased EV sales by more than 200 percent in FY2022 compared to FY2021. By 2030, the government hopes to have a 30 percent market share in the passenger automobile category. As the automotive sector expands, there is a rising demand for advanced electronic systems and components in vehicles. Semiconductors are vital for powering a wide range of automotive applications, including infotainment systems, advanced driver-assistance systems (ADAS), connectivity solutions, and electric vehicle (EV) technology. With the government's focus on promoting electric mobility and the increasing consumer preference for smart and connected vehicles, the automotive industry's demand for semiconductor materials is experiencing a significant surge. This trend is driving the growth of the India semiconductor materials market during the projected period.

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India Semiconductor Materials Market: By End user

Based on end user, the market is classified into consumer electronics, manufacturing, automotive, energy and utility and others. The increasing adoption of smartphones, laptops, tablets, and other consumer electronic devices is driving the demand for advanced semiconductor materials. Factors such as rising disposable incomes, expanding middle-class population, and growing technological advancements contribute to the growth of the consumer electronics market in India. As consumers seek more advanced and feature-rich devices, the demand for high-performance semiconductor materials for applications like processors, memory chips, sensors, and displays is expected to experience significant growth. The consumer electronics segment presents lucrative opportunities for semiconductor material suppliers in India, with a focus on delivering innovative and reliable solutions to meet the evolving needs of consumers.

India Semiconductor Materials Market: By Country

Baes on region, the India semiconductor materials market is segmented into North India, South India, East India, and West India. West India segment is expected to grow significantly in the India semiconductor materials market during the projected period With states like Maharashtra and Gujarat leading the way, this region has become a prominent hub for semiconductor manufacturing, driven by a favorable business environment, skilled labor, robust infrastructure, and strategic connectivity. The government's support for local manufacturing and the establishment of semiconductor parks further bolster the region's potential. As the demand for electronic devices continues to rise, West India's contribution to the semiconductor materials market is expected to be substantial, making it a key region to watch in the coming years.

Impact of COVID-19 on the India Semiconductor Materials Market

The COVID-19 pandemic had a substantial influence on India's semiconductor materials sector, causing supply chain disruptions, manufacturing delays, and a drop in consumer demand. Border closures and international trade restrictions posed problems with the availability and timely supply of raw materials and components. With lower consumer spending and economic uncertainty, demand for electronic gadgets and related semiconductor materials fell. However, as the situation gradually improves, the market is likely to rebound, led by the restoration of manufacturing activities, the expansion of innovative technologies, and the rising demand for electronic devices across several industries.

Competitive Landscape

The India Semiconductor Materials Market is highly competitive, with all the players continually competing to gain a larger market share. The key players are Reliance Industries Limited, Tata Chemicals Limited, Wacker Metroark Chemicals Pvt. Ltd., Sumitomo Chemical India Pvt. Ltd., Merck India Pvt. Ltd., JSR Corporation India Pvt. Ltd., Dow India, Shin-Etsu Chemicals India Pvt. Ltd., Entegris India Pvt. Ltd., Huntsman International (India) Pvt. Ltd., and other prominent players.

Don’t miss the business opportunity in the India Semiconductor Materials Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the India Semiconductor Materials Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global India Semiconductor Materials Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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