According to a report by Frost & Sullivan, India’s mobile phone market, comprising feature phones and smartphones, is expected to generate Rs 2.4 trillion in revenue by fiscal 2026, up from Rs 1.4 trillion in fiscal 2022, recording a compound annual growth rate (CAGR) of 14.5 per cent. The report explains that this growth will be driven by rising internet penetration and declining smartphone prices.
In terms of volume, the report mentions that the Indian smartphone market consisted of 255 million units in fiscal 2022, which is likely to grow at a CAGR of 9.7 per cent to 370 million units by fiscal 2026.
As per the report, China-based brands, including Xiaomi, Oppo, Vivo, Realme and OnePlus, accounted for 71 per cent of the smartphone market share in India in fiscal 2022, while foreign brands, excluding China, and Indian brands comprised the remaining 25 per cent and 4 per cent, respectively.
Commenting on the report, Rajkumar Elilarasu, senior consultant, Industrial Practice, Frost & Sullivan, said, “Government mandates and support in terms of legislative and financial incentives are critical for the mobile phone market, influencing its growth. Additionally, the government’s production-linked incentive (PLI) scheme is helping mobile manufacturing companies increase their year-on-year sales. Currently, India is the second-largest exporting nation for mobile phones and is fast becoming a global manufacturing hub. India has the potential to export mobile phones worth about $100 billion and components worth $40 billion by fiscal 2026. India-manufactured phones are popular in the Middle East and North Africa region, offering India considerable export market potential along with domestic sales.”
