Indian smartphone market poised for 6 pc growth in 2025 amid PLI push

The Indian smartphone market is poised for significant growth in 2025, with a projected 6 per cent increase (year-on-year) driven by improving consumer sentiment and government initiatives aimed at reducing unemployment, industry experts said on Friday.

The mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering an increase of a massive 2,000 per cent, driven by the production-linked incentive (PLI( scheme.

According to a latest report by Counterpoint Research, India's smartphone market has emerged as the second largest globally by unit volume and third largest by value in the third quarter of 2024. The smartphone volume grew by 3 per cent in Q3 2024 (July-September), while its value surged by an impressive 12 per cent to reach an all-time record for a single quarter.

According to Tarun Pathak, Research Director, Mobile Devices and Ecosystems at Counterpoint Research, the ongoing premiumisation trend is emerging as a key driver of this growth, reflecting consumers’ aspirations for high-quality, feature-rich devices.

“To capitalise on this momentum, brands are likely to strengthen their focus on the premium segment. Additionally, original equipment manufacturers (OEMs) are anticipated to launch multiple models the entry-level market with the launch of a 5G smartphone priced below Rs 10,000 in 2025,” Pathak told IANS.

Several OEMs are recognizing the growth potential in this segment and are expected to introduce more 5G-enabled devices to capitalise on this opportunity.

Premium demand is also surging in tier-3 and tier-4 cities, with these regions showing significant untapped potential.

“This alignment between aspirational demand, innovative offerings, and strategic pricing has propelled India’s smartphone market to achieve new milestones, with retail value now poised to surpass $50 billion,” said Pathak.

CyberMedia Research (CMR) points to a strong growth momentum for 5G and AI smartphones in the country, growing 21 per cent YoY in 2025.

“Chinese smartphone brands will focus on bringing AI capabilities in the value for money smartphone segment, especially in low tiers,” Prabhu Ram, VP-Industry Research Group, CMR, told IANS.

The country's electronic exports also jumped by a robust 27.4 per cent to $22.5 billion in April-November of FY 2024-25, from $17.66 billion during the same period in 2023-24. Within the electronics sector, smartphone exports have recorded a 45 per cent increase in exports as leading players such as Apple and Samsung expand production in the country.

The country saw a record smartphone exports in November this year, surpassing the Rs 20,000 crore mark for the first time in a month, which was led by Apple.