India's Semiconductor Market Projected To Surpass $100 Billion In Revenues By 2030

New Delhi: India’s semiconductor market is set to cross $100 billion in revenues by 2030, driven by government initiatives like production-linked incentive (PLI) scheme amid robust demand to build digital infrastructure across industries, according to a report on Wednesday. 

Mobile handset, IT and telecom segments are leading the semiconductor industry, contributing more than 75 per cent of its revenues, according to a report by the India Electronics and Semiconductor Association (IESA) and Counterpoint Research.

The government’s $9.1 billion ‘Semicon India’ programme aims to boost semiconductor manufacturing and workforce development, driving innovation and growth in India’s tech ecosystem.

“India has created one of the largest smart populations in the world, powered by semiconductors operating in the background. Semiconductors have a profound commercial, strategic and social impact,” said Ved Prakash Mall, Director, IESA.

Semiconductors play a crucial role in sectors such as electronics manufacturing, digital transformation, defense, aerospace, renewable energy, IoT, healthcare, automotive and research.

India’s semiconductor market was valued at $45 billion in 2023 and is projected to rapidly grow at a CAGR of 13 per cent to surpass $100 billion by 2030.

Tarun Pathak, Research Director at Counterpoint Research, said that the handset sector is the leading force in India’s semiconductor industry, playing a crucial role in the country’s digital transformation as more consumers transition from feature phones to smartphones.

“This growth is driven by the increased use of social media, OTT platforms, affordable prices, accessible data, and the expansion of the 5G network. At the same time, India’s IT sector is thriving, supported by pandemic-driven digitalisation and government initiatives like ‘Digital India’ and ‘Make in India’,” he mentioned.

Union Minister for Electronics and IT, Ashwini Vaishnaw, said this month that India is moving towards becoming the next semiconductor hub for the world as big investment is happening in this sector in the country.

More than Rs 1.52 lakh crore (nearly $18 billion) worth of investments have come in India’s semiconductor manufacturing space in a short span of time and several projects are already in the pipeline.

Counterpoint Research Vice President Neil Shah said that The telecom sector, with the ongoing 5G and fibre network rollouts, is central to this expansion.

“Projects like BharatNet and solutions such as fixed wireless access (FWA) are playing a pivotal role, especially in regions where fiber deployment is challenging. The semiconductor demand in India will be driven by the need for high-speed connectivity,” Shah noted.