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India Semiconductor Market to Grow at a CAGR of 24.32% during the Forecast period 2024-2029

The rise of artificial intelligence, machine learning & IoT, and the surge in 5G demand are likely to propel the demand in the India Semiconductor Market across the country.

According to the TechSci Research report, “India Semiconductor Market - By Region, Competition Forecast & Opportunities, 2019-2029.”  India Semiconductor Market was valued at USD 34,426.91 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 24.32% owing to the rising needs for electronics products by consumers, growing usage of artificial intelligence (AI), supportive government initiatives, etc. across the nation.

Semiconductors are critical components of electronics that serve as the foundation for technological advances in critical and emerging technologies. India, the second most populous country in the world, spends USD 180 billion on electronic goods. The country, which has the fifth-largest economy in the world, plans to expand its domestic semiconductor market. Furthermore, with 120 design units, India has a well-developed semiconductor design industry, and is widely used in industries such as automotive, communication, industrial, data processing, consumer electronics, and others. The demand for semiconductors is expected to rise due to the country's increasing digital transformation among consumers, businesses, and the public sector, as well as the adoption of new technologies and the growing demand for electronic goods.

The Indian government and industry participants are implementing a number of initiatives to advance the design industry and improve India's standing in the semiconductor designing sector. Both are putting special emphasis on improving education levels in the country to further develop expertise in design and IT. To promote an entrepreneurial culture, government organizations including the Indian Institute of Technology (IIT), the National Institute of Technology (NIT), privately funded organizations such as the Indian Institute of Information Technology (IIIT), and Indian design firms, for instance, are playing critical roles in fostering an entrepreneurial culture. These factors are going to accelerate the growth of the semiconductor industry.

Browse over 26 market data Figures spread through 100 Pages and an in-depth TOC on the "India Semiconductor Market"

The India Semiconductor Market is divided into component, application, and type. Based on component, the market is segmented into memory devices, microprocessors, analog IC, sensors, discrete power devices, and others. Based on application, the market is divided into IT & telecom, automotive, consumer electronics, and other industries. Based on type, the market is segmented into extrinsic and intrinsic semiconductor. The market analysis studies the regional segmentation divided among South India, North India, West India, and East India.

Based on application, Information Technology (IT) and Telecommunications dominated the India Semiconductor Market with a market share of 53.30% in 2023. India's strong presence in the IT and telecommunications landscape, coupled with government initiatives and a skilled workforce, positions the country as a promising market for semiconductors. Continued growth in these sectors and the drive towards digital transformation create a favorable environment for the semiconductor industry to flourish.

Based on region, In 2023, the South India region of India accounted for the largest market share of 40.14% in the India Semiconductor Market which can be attributed to the region being a leader in the IT and telecom industry. The southern region of India, renowned as an IT hub, revolves around the cities of Bengaluru, Chennai, and Hyderabad, known for their thriving technology industries. These cities host major global technology companies, along with a plethora of startups and research institutions, positioning them among India's top technology hubs.

Key market players in the India Semiconductor Market include:

  • Broadcom India Private Limited
  • Chiplogic Semiconductor Services Private Limited
  • Tata Elxsi Limited, Continental Device India Pvt. Ltd
  • MosChip Technologies Limited
  • NXP Semiconductors India Private Limited
  • eInfoChips Private Limited
  • ASM Technologies Ltd
  • Masamb Electronics Systems Private Limited
  • Semi-Conductor Laboratory
  • Saankhya Labs Private Limited
  • ROHM Semiconductor India Pvt. Ltd
  • Infineon Technologies India Private Limited
  • Renesas Electronics India Private Limited
  • STMicroelectronics Private Limited  

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The growing usage of semiconductors in various sectors including for safety, electrification, communication, and connection is expected to increase as the production and adoption of electric vehicles (EV) grow in India. India is one of the largest EV marketplaces in the world with sales of 236,802 units in 2021 and 143,837 units sold in the first half of 2021. These factors are expected to boost the semiconductor industry in India during the forecast period. Additionally, various investments by the union government and market players in the semiconductor industry is likely to propel the market of India semiconductor market in the upcoming years. For instance, IBM and STMicroelectronics decided to set up India's first chip-making plant with an investment of USD 7.91 billion permitted by the Government of India. Therefore, the market for semiconductor across the country is expected to rise in the forecast period 2024-2031F.” said Mr Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

India Semiconductor Market Segmented By Component (Memory Devices, Microprocessors, Analog IC, Sensors, Discrete Power Devices, Others), By Application (IT & Telecom, Automotive, Consumer Electronics, Other Industries), By Type (Extrinsic Semiconductor, Intrinsic Semiconductor), By Region, Competition Forecast & Opportunities, 2029F”, has evaluated the future growth potential of an India semiconductor market and provides statistics and information on market structure, size, share, and future growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the India semiconductor market.


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