The Future of Mobile Phones Market in India: Growth Forecast and Trends
Mobile phones have become an integral part of our lives today. With the increasing demand for smartphones, India has emerged as the fastest-growing market for mobile phones in recent years. The mobile phone market in India is projected to grow at a CAGR of 11.5% between 2021 and 2026. In this article, we will take a closer look at the growth forecast and trends of the mobile phone market in India.
The Rising Demand for Smartphones in India
The Indian mobile phone market is dominated by smartphones, which account for more than 80% of the market share. The increasing demand for smartphones can be attributed to several factors such as the availability of affordable smartphones, increasing internet penetration, and rising disposable income.
According to a report by Counterpoint Research, India is expected to surpass 900 million smartphone users by 2023. This growth will be fueled by the increasing adoption of 5G technology, which is expected to be rolled out in the country in the coming years.
The Role of E-commerce in the Growth of Mobile Phone Market in India
E-commerce has played a significant role in the growth of the mobile phone market in India. The ease of online shopping, availability of discounts and offers, and the increasing use of digital payments have made online channels the preferred mode of purchasing smartphones for Indian consumers.
An increasing number of smartphone manufacturers and retailers are partnering with e-commerce platforms to reach a wider audience. According to a report by RedSeer, online channels accounted for 47% of the smartphone sales in the first quarter of 2021.
The Emergence of New Players in the Indian Mobile Phone Market
The Indian mobile phone market is witnessing the emergence of new players, who have disrupted the market with their innovative products and aggressive pricing strategies. Chinese smartphone manufacturers, such as Xiaomi, Oppo, and Vivo, have captured a significant market share in the Indian market.
Another emerging player in the Indian mobile phone market is Jio, the telecom arm of Reliance Industries. Jio has launched its range of smartphones at affordable prices, targeting the budget segment of the market. Jio’s entry into the market is expected to further intensify the competition among existing players.
The Growing Trend of Upgrading to High-End Smartphones
With the increasing disposable income and changing consumer preferences, there is a growing trend of upgrading to high-end smartphones in India. Consumers are willing to spend more on premium smartphones that offer better features and performance.
According to a report by Counterpoint Research, the premium smartphone segment (devices priced above INR 30,000) in India grew by 143% in the first quarter of 2021, compared to the same period last year. Apple emerged as the market leader in the premium segment, followed by Samsung and OnePlus.
The Way Forward
In conclusion, the mobile phone market in India is poised for significant growth in the coming years, driven by factors such as the increasing demand for smartphones, the emergence of new players, and the growing trend of upgrading to high-end devices. The smartphone industry in India is expected to continue expanding and innovating, with the introduction of new technologies such as 5G and foldable screens. As the Indian mobile phone market evolves, it will be interesting to see how the industry players respond to the changing customer preferences and market dynamics.
