India’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected at about US$33.0bn in 2012. This is expected to increase to US$57.1bn by 2016, driven by rising incomes and growing affordability. Only nine out of 1,000 people in India own a computer, one-fifth of the level in China, while Indian handset population penetration is about 72%.
Vendors reported strong sales during the 2011 cricket world cup season, with forecasts that sales would be up by 50% compared with the same period of 2010. However, sales slowed in H112 as a result of the rupee devaluation. Spending on consumer electronics devices is projected to grow at an overall CAGR of 15% through 2016, with the key segments including low-cost mobile handsets, colour TVs, set-top boxes and notebook computers.
Computers Computers accounted for about 32% of Indian consumer electronics spending in 2011. BMI forecasts Indian domestic market computer hardware sales (including notebooks and accessories) of US$9.8bn in 2012, up from US$8.8bn in 2011. With PC penetration of around 2%, the computer hardware compound annual growth rate (CAGR) for the 2012-2016 period will be about 15%.
AV India’s domestic video, audio and gaming device market is expected to grow to a value of US$23.3bn in 2016. TV will remain the core product in this category, with sports events such as the 2011 ICC Cricket World Cup driving demand for TV set upgrades. LCD TV set sales account for above 80% of the flat-panel TV market and are projected to pass 5.7mn in 2012, while vendors also report strong growth in the LED TV set segment.
Mobile Handsets Indian mobile handset sales accounted for about 31% of Indian consumer electronics spending in 2011. Total Indian market handset sales are expected to reach 316mn units in 2016, as mobile subscriber penetration moves towards 85.1%. Vendors are likely to increase their focus on semiurban rural customers, with penetration in rural areas estimated at less than 15%, far below the national level. Smartphones will be a strong growth area, with Indian and multinational vendors competing to offer phones with perceived high-end features at affordable prices.
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