Deloitte predicts Indian semiconductor market to reach $55 billion by 2026
- ByStartupStory | February 28, 2023
The Indian semiconductor market has a bright future ahead, according to consultancy Deloitte. The market will reach $55 billion by 2026, and the three main industries that will contribute the most will be computing and data storage, smartphones and wearables, and automotive components.
India, which is experiencing a wave of digitisation, is poised to emerge as a major player in 5G technology, which promises to reach even the most remote and diverse corners of the country.Other areas include semiconductor and chip technology, which is likely to take off in a big way during 2025–2028.
Deloitte also projected that India’s satellite broadband and communication services are likely to grow exponentially due to huge data consumption.
Deloitte said in a released statement, “With growing demand, the industry is poised to play an important role in enhancing the global value chain as it will expand to a market size of $85 billion and generate employability for 6,00,000 by 2030.”
According to P N Sudarshan, Partner and TMT Industry Leader at Deloitte India, the recent shortage of semiconductor chips has increased the importance of this industry.Taiwan is the manufacturing hub of semiconductor chips, but the past experience of supply chain disruptions, shortages of chips due to mounting geopolitical tension, and economic sanctions has made countries realise they must be self-sufficient.
The shortage of semiconductor chips in the market and its related problem, however, is proving to be a silver lining for India, as it can position itself as the next big manufacturing destination, which also matches with the Indian motto “Make in India, Make for the World.” This will help India attract investments and talent and boost bilateral relations.
According to Deloitte’s analysis, “the Indian sports market is estimated to touch $100 billion by 2027, up from $27 billion in 2020, a growth of over 20%” and “about twice as fast as the global sports market. We predict that the success of new talent in sports and government initiatives will accelerate the growth of diverse sports in India,” Deloitte said.
India’s drive towards building a 5G ecosystem, advancing telecom and data centre infrastructure, and engaging the private sector will offer great opportunities, said Peeyush Vaish, Partner and Telecom Sector Leader at Deloitte India.
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