Report Overview

India Smartphone Market- Industry Trends & Forecast Report 2027

The India smartphone market was worth 154.0 million units in 2020 and is further projected to reach 388.0 million units by the year 2027, growing at the CAGR of 14.2% in the forecast period. The market is booming at a tremendous rate because of the availability of low-cost smartphones laced with advanced features and strong distribution channels through retail stores and online sites such as Amazon.com and Flipkart. Furthermore, increased government efforts toward the FDA and manufacturing plants are projected to enhance the market during the forecast period.

Source: BlueWeave Consulting

India Smartphone Market- Overview

Smartphones are advanced versions of telephones used for making phone calls and accessing the Internet. Yet, today's smartphones are equipped with advanced functionality that lets users access social networking sites, make video calls, send emails, track their GPS, and more. Furthermore, smartphones can also be used as a remote control to operate home appliances such as televisions and air conditioners. Currently, smartphones are increasingly being utilized for business and education, which benefits its market growth.

India Smartphone Market Forecast and Trends

Growth Drivers

High Penetration of Low-Cost Smartphones

India has one of the most lucrative smartphone markets in the world, with significant growth. The market is also price-sensitive, and a slight change in pricing will change its consumption patterns. As a result, smartphone manufacturers in India launch and offer low-cost smartphones to capture the largest market share. According to a survey conducted by Amazon, mid-range smartphones between Rs. 15,000 to Rs. 25,000 (USD 202.31 to USD 337.18) are popular among Indian buyers. Therefore, brands like Samsung, Xiaomi, Realme, etc., target this price range, propelling the market growth.

Increasing Investment for Manufacturing Plants

With immense growth opportunities in the smartphone market, India is attracting foreign direct investment to establish local smartphone and component manufacturing plants. Local smartphone manufacturing will reduce shipping costs and increase income for manufacturers while benefiting from various incentives such as tariff reductions and other financial assistance. Governments are also launching a multitude of efforts to help the sector. For instance, India and Taiwan are negotiating a deal to reduce tariffs on chip manufacturing. These activities are projected to enhance market growth throughout the forecast period.

Restraints

Concerns about the side effects of smartphones

The excessive use of smartphones has raised serious concerns for the masses. Several studies and experts have revealed that regular use of smartphones may result in digital eye strain, neck problems, male infertility, and car accidents. The high use of smartphones will eventually have adverse effects on human health, including changes in brain activity, reaction time, and sleep patterns. Moreover, children under the age of 18 are more likely to be adversely affected by smartphones than adults. These factors could slow the market growth during the forecast period.

Impact of COVID-19 on India Smartphone Market

The India smartphone market witnessed a significant boom after the outbreak of the COVID-19 pandemic. The shift to remote schooling and working resulted in a sharp rise in smartphone demand across the country. As more people started using their smartphones to access social media sites and streaming platforms, internet traffic also recorded a surge during the lockdown period. In spite of all this, the market suffered a decline following the enormous gap between supply and demand that resulted from the shutdowns of manufacturing and distribution operations. The market is, however, expected to increase considerably in the post-COVID-19 period.

India Smartphone Market - By Operating System

Based on the operating systems, the India smartphone market is segmented into Android and iOS. The Android segment accounts for the largest market share as major smartphone brands available in India offer this operating system. Android offers a wider choice of phones and applications than iOS. It is relatively more popular among Indian consumers. On the other hand, Apple, Inc., the brand that uses iOS, is geared towards an elite group of consumers, thus limiting its market growth.

India Smartphone Market - By Distribution Channel

Based on distribution channels, the India smartphone market is segmented into retail stores, specialty stores, online distributors, and others. The online distributor segment emerged as the major shareholder in 2020 and is expected to witness the highest growth rate in the forecast period as well. Popular e-commerce platforms such as Amazon.com and Flipkart contribute to the rapid growth of this segment in India. With these platforms, consumers can obtain smartphones at a discounted price and enjoy free delivery services, which drives the smartphone market in India.

India Smartphone Market - Regional Insights

Geographically, the India smartphone market is segmented into North India, South India, East India, and West India. India's Northern region dominates the smartphone market, with Uttar Pradesh having the highest mobile subscribers. Inexpensive brands such as Oppo, Vivo, Xiaomi, etc., are highly popular in this region. Additionally, the high number of young smartphone users and working population in north India also drive growth in the market. Similarly, South India also leads the India smartphone market, with states like Tamil Nadu and Andhra Pradesh having high mobile penetration rates.

Competitive Landscape

The leading players in the India smartphone market are Realme, OnePlus, Xiaomi, Samsung Group, Vivo, Google, Oppo, Apple, Inc., Huawei, Nokia, and other prominent players.

Various industry players make up this highly fragmented market. Yet affordable players like Oppo, Vivo, Xiaomi, etc., still hold the majority of the market. However, the high-end market is dominated only by Apple and Google with their innovative but expensive smartphones. Additionally, companies extensively do product launches to grab the most market share. They also spend heavily on advertising and marketing to expand their consumer base.

This market also shows a strong trend of adopting competitive strategies including joint ventures, mergers, and collaborations.

Recent Developments

• In September 2021, Samsung announced the launch of two new smartphones in the Indian market. The Samsung Galaxy F42 5G has been priced at Rs. 20,999 (USD 282.90) and Samsung Galaxy M52 5G is being offered at Rs. 25,990 (USD 350.14).
• In September 2021, the OnePlus brand that was merged with Oppo, both owned by Chinese brand BLK Electronics, announced plans to launch new smartphones under USD 269.65 (Rs. 20,000) to target the affordable smartphone market in India.

Scope of the Report

By Operating System

• Android
• iOS

By Distribution Channel

• Retail Stores
• Specialty Stores
• Online Distributors
• Others

By Region

• North India
• South India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. High Penetration Of Low-Cost Smartphones
         2. Increasing Investment For Manufacturing Plants
      2. Market Restraints
         1. Increasing Concern Towards Side Effects Of Smartphones
      3. Market Challenges
         1. Shortage Of Chips Due To Covid-19 Pandemic
      4. Market Opportunity
         1. Launch Of 5G Technologies
         2. Product Launches And Promotions
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Smartphone Market Overview
   1. Market Size & Forecast by Value (USD Million) 2017-2027
   2. Market Size and Forecast, By Volume (Million Units) 2017-2027
      1. By Operating System
         1. Android
         2. iOS
      2. By Distribution Channel
         1. Retail Stores
         2. Specialty Stores
         3. Online Distributors
         4. Others
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Smartphone Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Realme
   2. OnePlus
   3. Xiaomi
   4. Samsung Group
   5. Vivo
   6. Google
   7. Oppo
   8. Apple, Inc.
   9. Huawei
   10. Nokia
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Smartphone Market Segmentation

Figure 2: India Smartphone Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: India Smartphone Market Size, By Value (USD Million), 2017-2027

Figure 5: India Smartphone Market Size, By Volume (Million Units), 2017-2027

Figure 6: India Smartphone Market Share (%), By Operating System, By Value, 2017-2027

Figure 7: India Smartphone Market Share (%), By Operating System, By Volume, 2017-2027

Figure 8: India Smartphone Market Share (%), By Distribution Channel, By Value, 2017-2027

Figure 9: India Smartphone Market Share (%), By Distribution Channel, By Volume, 2017-2027

Figure 10: India Smartphone Market Share (%), By Region, By Value, 2017-2027

Figure 11: India Smartphone Market Share (%), By Region, By Volume, 2017-2027

List of Tables

Table 1: India Smartphone Market Size, By Operating System, By Value (USD Million), 2017-2027

Table 2: India Smartphone Market Size, By Operating System, By Volume (Million Units), 2017-2027

Table 3: India Smartphone Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 4: India Smartphone Market Size, By Distribution Channel, By Volume (Million Units), 2017-2027

Table 5: India Smartphone Market Size, By Region, By Value (USD Million), 2017-2027

Table 6: India Smartphone Market Size, By Region, By Volume (Million Units), 2017-2027

Table 7: Realme Financial Analysis

Table 8: Realme Business Overview

Table 9: OnePlus Financial Analysis

Table 10: OnePlus Business Overview

Table 11: Xiaomi Corporation Financial Analysis

Table 12: Xiaomi Corporation Business Overview

Table 12: Samsung Group Financial Analysis

Table 14: Samsung Group Business Overview

Table 15: Vivo Financial Analysis

Table 16: Vivo Business Overview

Table 17: Google Financial Analysis

Table 18: Google Business Overview

Table 19: Oppo Financial Analysis

Table 20: Oppo Business Overview

Table 21: Apple, Inc. Financial Analysis

Table 22: Apple, Inc. Business Overview

Table 23: Huawei Financial Analysis

Table 24: Huawei Business Overview

Table 25: Nokia Financial Analysis

Table 26: Nokia Business Overview