According to a recent report by Deloitte, India’s semiconductor market is expected to reach $55 billion by 2026 and $85 billion by 2030 on the back of growing demand from smartphones and wearables, automotive components, and computing and data storage sectors, which will contribute more than 60 per cent to the industry.
As per P N Sudarshan, partner and TMT industry leader, Deloitte India, risks such as geopolitical threats, fluctuating demand from original equipment manufacturers (OEMs), natural disasters and economic sanctions also present a unique opportunity for India, positioning it as the next big manufacturing destination. The production-linked incentive (PLI) and design-linked incentive (DLI) packages are also expected to attract investments and establish India as a centre for semiconductor manufacturing. With the advent of 5G, internet of things (IoT) and data storage, the sector is expected to get a boost and will attract investment, talent and bilateral relations focusing on supply chain, resilience and localisation setting in India.
With regard to the Indian telecom sector, the report notes that the country is likely to emerge as a major player in the 5G revolution despite strong economic headwinds, as semiconductor and chip technology with private deployment networks are likely to take off in the 2025-2028 period. The growth of 5G standalone (SA) networks is expected to witness and further accelerate private network deployment. The report predicted that the economic impact of 5G would potentially be $450 billion by 2040, driven by cross-sector contributions for productivity and efficiency gains.
Meanwhile, according to Peeyush Vaish, partner and telecom sector leader, Deloitte India, the country’s push towards advancing its telecom and data centre infrastructure, presents a great opportunity for enterprises to utilise edge computing and 5G technology to enhance their operations.