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India’s Smartphone Industry and Impact of 5G: 5-Year Forecast


Deloitte TMT 2022 predictions represent the world we live in today and the future to come. It examines the role of COVID-19 as a catalyst for a number of emerging telecommunications trends, highlighting the lockdown-driven expansion of console gaming, online video services, health and wellness technology. , advanced connectivity for both business and home etc presents upcoming opportunities in telecom sector such as non-fungible tokens (NFTs), floating solar panels (floatovoltaics) for expansion blend of renewable energy, innovative wearable technology in healthcare, technology-enabled mental health solutions and sustainable smartphones. The Deloitte TMT 2022 prediction also gives a 5-year estimate of India’s smartphone boom along with the impact of 5G, highlighting the expected increase that India will see in terms of revenue. smartphone sales due to increased 5G penetration.

The Indian telecom industry has seen some major changes in 2021, which promise to re-establish growth trajectory and generate revenue for the industry. Recent measures proposed by the union cabinet have provided respite to the cash-strapped sector, encouraging investment in 5G Equipment. Cabinets also approved a $1.62 billion PLI plan (approximately Rs 12,600) for the telecommunications and network equipment manufacturing industries.

India ready to have 1 billion smartphone users in next 5 years
In 2021, India has 1.2 billion mobile customers, with around 750 million smartphone users. According to our research, the smartphone market will reach one billion users by 2026. From 2021 to 2026, this growth rate can be driven by rural area at a CAGR of six percent, while the urban area is expected to grow at a CAGR. of 2.5 percent. Higher Internet adoption is expected to boost demand for smartphones; This increased demand will be driven by the need to adopt fintech, e-health, and e-learning.

New smartphones will account for 95% of all replacement smartphones in urban markets in the next 5 years
As consumer demand in India continues to grow, the market has demonstrated a fairly rapid pace of substitution. In urban areas, the average lifespan of a mobile device is three years. According to Deloitte estimates, 95% of urban market replacements by 2026 will be new smartphones, while only 5% for pre-owned phones compared with 75% and 25% respectively in 2015. 2021. Rural population is expected to demonstrate the same trend as the average lifespan of phones is 4 years. Around 80% of replacement devices are likely to be for new devices, while 20% for pre-owned devices by 2026. As the number of smartphone users increases, it is predicted that the replacement of feature phones with smartphones will eventually decrease.

5G is expected to become the fastest adopted mobile technology
According to Deloitte analysis, demand for smartphones in India is expected to grow at a CAGR of 6%, reaching around 400 million smartphones in 2026 from 300 million in 2021. This high is mainly generated after the launch of 5G, which alone will contribute 80% of the devices (about 310 million units) by 2026. 5G is expected to become a rapidly adopted mobile technology. due to its diverse applications, such as high-speed gaming and telehealth. Following the 5G launch, additional smartphone shipments are expected to be 135 million (cumulative) in 2026.

India’s smartphone revolution is likely to generate a predicted cumulative total shipments of 1.7 billion smartphones between 2022-2026, creating a market worth around $250 billion (approximately Rs 19,39,700), of which more than 840 million 5G handsets are likely to be sold in the next five years. From 2022, 5G penetration will increase every year, resulting in increased sales of 5G smartphones in India. In addition, new information is announced $10 Billion Incentive Plan (approximately Rs 77,600) to promote semiconductor manufacturing in India and strong government support for BharatNet The initiative in the recent release of budget for rural and remote areas by 2025 is guaranteed to boost smartphone sales in India.

The author is a Partner and Telecommunications Sector Leader at Deloitte India.

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Gadgets 360 Insights articles are written by industry leaders, analysts, researchers and experts in various fields related to personal technology, exclusively for our readers.



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