Indian semiconductor market to reach $55B by 2026: Deloitte
Satellite broadband and communication service market in India is expected to grow and expand with the developing use case horizon and exponential growth in data consumption, as per Deloitte's 2023 TMT (Technology, Media, and Entertainment, Telecom) predictions.
India is poised to emerge as a major player in 5G, semiconductor and chip technology, live sports, and AVOD, with private deployment networks likely to take off in a big way during 2025-2028, according to consultancy Deloitte.
It has also projected the Indian semiconductor market to be worth $55 billion by 2026.
Satellite broadband and communication service market in India is expected to grow and expand with the developing use case horizon and exponential growth in data consumption, as per Deloitte's 2023 TMT (Technology, Media, and Entertainment, Telecom) predictions.
Deloitte predicted the Indian semiconductor market will reach $55 billion by 2026, with more than 60% of the market being driven by three industries--smartphones and wearables, automotive components, and computing and data storage.
"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," it said in a release on Monday.
PN Sudarshan, Partner and TMT Industry Leader at Deloitte India, noted that the semiconductor chip shortage over the past two years has amplified the importance of this industry. It has exposed the underlying risks in the value chain, owing to geopolitical threats, fluctuating demand from original equipment manufacturers, natural disasters and economic sanctions, he added.
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"These factors, however, also present a unique opportunity for India, positioning it as the next big manufacturing destination.
"Driven by key factors, including an increase in semiconductor content, the advent of 5G and IoT, and data storage requirements, the sector will also attract investment, talent, and bilateral relations focusing on supply chain, resilience, and localisation setting in India," Sudarshan said.
According to Deloitte's analysis, the Indian sports market is estimated to touch $100 billion by 2027 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.
Peeyush Vaish, Partner and Telecom Sector Leader at Deloitte India, said, India's push towards advancing its telecom and data centre infrastructure coupled with the availability of a multitude of approaches for private network deployment, offers great opportunity for enterprises to utilise edge computing and 5G technology to enhance their operations, agility, and competitiveness.
Edited by Megha Reddy