Consumer Electronics (CE) Industry is one of the fastest growing industries in India. According to report revenue in the Consumer Electronics market amounts to USD 71,177 million in 2022. The market is expected to grow annually by 5.76% (CAGR 2022-2026). The industry has witnessed a shift from traditional electronic products to newer technologies like mobile electronics, IT & communication equipment and appliances.
With the introduction of every new gadget and gizmo, Consumer Electronics has earned a special mention in Indian economy. The flourishing market of India is abuzz with demand for best-in-class gadgets, customer service, attractive designs and sturdy build quality to cater the demand for various products and services.
One of the most notable changes in India’s Consumer Electronics sector is the rise in new age companies in the space apart from the ongoing success stories of incumbent players. Since India is one of the largest consumer markets in the world, there has been a lot of attention by foreign players who have been keen to make India their base to cater to customers. The category itself has undergone a significant change with consumers moving away from products with low-cost offerings, to gadgets that cater to specific needs and design.
Consumers worldwide are forecast to spend 2.06 trillion U.S. dollars by 2023 on electronics. It is estimated to grow exponentially in the coming years. With every passing year new technologies are being introduced in the market. The market for consumer electronics sector has been growing and new companies are entering the market every year, with new advanced technologies and products.
Business opportunities for start-ups in Indian consumer electronics industry are enormous. Led by the increased demand of smart phones, the Indian consumer electronics market is expected to witness huge increase in revenue and shipments over the next five years, due to huge demographic dividend India presents. It’s the second highest revenue generating sector with double digit growth and a very low market penetration.
The fast-paced growth of the Consumer Electronics Industry in India has led to availability of relatively lower capital for start-up ventures and has also intensified competition. However, there are many opportunities in this field for such smaller set of new operators. This is primarily because in spite of being penetrated well by the foreign players, significant spacing remains in the Indian markets.
One of the key components in the strategic framework affecting sustainable competitiveness of the industry are Business Opportunities for start-ups. The most sought-after and capital efficient Business models have been identified for implementation.
The Consumer Electronics industry in India will be driven by Smart Home Devices, Wearable Devices and New TV sets. So far, the Food and Grocery Sector is the largest application areas for new technologies, but this will soon change, as people will start buying more electronics products.
India is home to a large population of young Indians. The truth remains that many of them are technology savvy in nature and prefers to live with the times. This has created a strong base for tech-based businesses that touch upon the requirements of this segment especially mobile & consumer electronics segment. The concept of mobile app development for business and fun purposes has also gained popularity these days.
India has emerged as a promising market for the new generation entrepreneurs looking to rule the roost in technological fields. There is a vast scope for the businesses, if they adapt to the current socio-economic scenario and provide value added services to their customers.
The explosive growth rate of Indian IT industry has encouraged many entrepreneurs to enter the field of technology. The burgeoning growth of Indian IT and ITeS industry has also given rise to numerous business opportunities in the consumer electronics sector. Owing to these factors, we believe that consumer electronics has immense business opportunities for start-ups in India.
Available Government Schemes for Start-ups
• The National Policy on Electronics (NPE) 2019
• Electronics System Design and Manufacturing (ESDM)
• Electronics Manufacturing Clusters (EMC) scheme
• Modified Electronics Manufacturing Clusters (EMC 2.0)
• Modified Special Incentive Package Scheme (M-SIPS)
• Electronics Development Fund (EDF)
• Phased Manufacturing Programme (PMP)
• Preferential Market Access (PMA)
• Production Linked Incentives (PLI)
• Scheme for the Promotion of Manufacturing of Components and Semiconductors (SPECS)
• Net Zero Imports in Electronics
• Zero Defect Zero Effect,
• Make in India
• Start up India
• Digital India
• Rationalisation of tariff and duty structure
Conclusion:
This is the golden period of Indian Consumer Electronics Industry. Having great potential and multiple opportunities to offer, Indian start-up ecosystem is bound to grow at light speed. Having said that India expects a lot of new start-up companies to come up with innovative ideas to strengthen her as a manufacturing hub in this sector as well.
(Guruprasad Bangle is the Chief Technology Officer at Solbuggy Connect Pvt Ltd)