ELECTRONICS AND ELECTRICAL SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Electronics and Electrical Industry in India
Summary/Snapshot
Electronics and Electrical Industry
- The industry in value terms is expected to record a CAGR of 16.6% to reach $ 540 bn by 2025.
- The government notified 3 Schemes (PLI):Production Linked Incentive(PLI) Scheme; Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS); and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).
- The consumer electronics and appliances industry in India is expected to become the fifth-largest in the world by 2025.
- Electrical equipment market production is estimated to touch USD 100 Bn by 2022.
- The sector contributes about 8% to the manufacturing sector in terms of value, and 1.5% to overall GDP.
- India’s digital base is the second largest in the world and is growing at the second-fastest rate among the 17 leading economies.
- FDI inflows in the Electronics and Electrical Equipments reached US$ 14.76 billion between April 2000-June 2022.
Growth Drivers
- The market is expected to witness 2.3xdemand of its current size (FY19) to reach US$ 160 billion by FY25.
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1.2 Bn consumers engaged in rapid urbanization and digitization with increasing penetration of electronic products.
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Semicon India Program: Schemes for setting up Semiconductor Fabs, Display Fabs, Compound Semiconductors, OSAT / ATMP, Design Linked Incentive (DLI).
- Rollout of 5G, and industrial use of Internet of Things (IoT) technology.
Sub industries
- Electrical Equipment & Components
- Electronic Components Semiconductors& PCBs
- Electronic Equipment & Measurement Instruments
- Motors, Generators & Transformers
- Telecommunication equipment &components
- Hardware, Storage & Peripherals
Opportunities
- Indian Electrical Equipment Industry Mission Plan (2012-22), aims to make India as a preferred destination for production of electrical equipment. It also aims to achieve an output of USD 100 Bn by balancing the trade deficit in the sector.
- Market-oriented reforms, such as the target of ‘Power for All’ plans to add 93 GW by 2022 is expected to generate huge demand for power transmission & distribution equipment.
- Incentives for capacity addition in power generation will further increase the demand for electrical machinery.
- India is home to considerable talent for electronic chip design, embedded software and has strong design and R&D capabilities.
Challenges
- Shortage of skilled resources in the Indian electronics industry.
- Infrastructure-related challenges such as irregular power supply, inconsistent water supply, and inefficient logistics result in delays.
- The cost of manufacturing is high as basic raw materials have to be imported coupled with high import and customs duties, thus making profit margins slimmer
How we can help you:
- Product-Pricing analysis
- Strategies for – product/service localization
- Market research to sell effectively
Key Investment Opportunities
Electrical
- Generation Equipment: Boilers, Turbines, Generators
- Transmission Equipment: Transformers
- Distribution Equipment: Switch Gears, Controls
- Others: Electrical Motors, Wires and Cables
Electronics
- Mobile phone manufacturing
- Semi-conductor wafer fabrication manufacturing
- Wearable devices manufacturing
- Solar cells and modules manufacturing
- Research, innovation and skill development support in emerging technology areas such as Augmented Reality (AR), Virtual Reality (VR), drones, robotics, additive manufacturing, etc.
- LED and Liquid Crystal Display (LCD) manufacturing
Recent Development
- Emerging technologies: Utilization of 5G, IoT/sensors, artificial intelligence (AI) and machine learning are providing impetus to the creation of advanced multi-utility electronic products.
- Localization of supply chain: Robust and localized supply chains offer many advantages such as reduced reliance on imports and the ability to cater to larger volumes in shorter time periods leading to lowered costs and more flexibility.
- Miniaturisation: The dawn of convergence has led manufacturers to integrate multiple devices and create small-scale devices or components for mechanical, optical, and electronic products.
Key Players in India
National
- Bharat Electronics
- Crompton Greaves
- Bajaj Electricals
- ABB India Ltd.
- Exide Industries Ltd.
- Havells India Ltd.
- Polycab India Ltd.
- Surya Roshni Ltd.
- Sterlite Technologies
- Finolex Cables Ltd.
International
- Apple Inc.
- Samsung Electronics
- LG
- Huawei
- Dell Technologies
- Siemens
- Hitachi
- Flextronics
- Schneider
- Kelvin Electrical
- Jabil Circuits
- Panasonic
- Sony
- Intel
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