Press Release

India Semiconductor Market to Achieve USD 105 Billion Valuation by 2030

The India Semiconductor Market size was valued at around USD 38 billion in 2024 and is projected to reach USD 105 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 18% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The growth of the Indian semiconductor sector is attributed to the growing digitization with increased demand from electronics consumers. With India's revival as a digital economy, the adoption of smartphones, smart home appliances, and electronic devices is growing rapidly. The Indian semiconductor industry is often considered to have entered an unprecedented path of expansion, driven by government initiatives, accelerated by technology, and by its growth in various sectors. A PLI scheme to induce semiconductor manufacturing locally by the government has been a potent force in the genesis of this industry. The immediate concern of this initiative is to reduce India's dependence on semiconductor imports, the government has extended one of its best financial support programs to attract investments to fabricate plants and R&D in India.

Moreover, the rising Indian middle class will act as the major driver for the consumption of semiconductors on account of affordable smartphones, smart devices, and consumer electronics. Besides that, the growth in electric vehicles is a conspicuous trend which implies soaring demand for EV batteries. Semiconductor components are involved in managing power systems, charging infrastructure, and vehicle automation. Also, the growth of the semiconductor ecosystem in Tier II and Tier III cities provides a genuine opportunity for India’s semiconductor industry to flourish. With the current emphasis by the government on decentralizing the industry, major centers for semiconductor design and research are arising in cities such as Hyderabad, Bangalore, and Pune.

Additionally, the expansion of edge computing and 5-granular networks has greatly enhanced the demand for advanced semiconductor technologies. This would boost the demand for high-performance chips as well, which are enabled by 5G to provide seamless connectivity, reduced latency, and faster data processing, thus being positive for the Indian Semiconductor Market. Furthermore, with AI and machine learning technologies rapidly gaining traction in healthcare and automotive applications, suppliers of semiconductor solutions would be in for a huge market opportunity. Another fast-emerging area of collaboration involves establishing a partnership with a well-set, internationally known semiconductor supply chain leader to bring investment, expertise, and technology to India's supposed semiconductor ecosystem, further states the research report, “India Semiconductor Market Analysis, 2025”.

India Semiconductor Market Segmentation Analysis

Consumer Electronics Segment Creates High Demand for Semiconductors

Based on the application, the market is further bifurcated into Networking & Communications, Data Processing, Industrial, Consumer Electronics, Automotive, and Government. Consumer electronics constitute the foremost application segment of the Indian semiconductor industry, accounting for 45% of the total market value. This is triggered by the sales of smartphones, laptops, tablets, and other smart devices. More than 140 million devices consumed by the Indian smartphone market during 2023, with each smartphone requiring advanced semiconductor components for controlling processing, connectivity, and power management. Besides that, the growth of the smart home and wearables market is kindling the demand for semiconductors. Local assembly and manufacturing are receiving a huge influx of investments from firms such as Samsung, Xiaomi, and Apple, thus multiplying the demand for semiconductors in India.

Front-end Equipment Segment Holds the Largest Market Share

Front-end equipment accounts for around 65% of the whole Indian semiconductor industry. Front-end equipment is used in the early part of semiconductor fabrication, such as wafer cleaning, etching, deposition, and lithography processes. This type of equipment is critical before the back-end processing of the semiconductor wafer because the semiconductor wafer should undergo shaping. With the shifting of global design technology to smaller nodes, the demands for advanced front-end equipment have increased, i.e., 7nm and 5nm, resulting in the demand for photolithography systems.

The major players in the photovoltaic equipment segment include companies like ASML and Applied Materials, which provide the advanced equipment necessary for semiconductor production. In India, semiconductor fabs are being backed by policy, from the Vedanta-Foxconn project, which is pushing the demand for front-end equipment to develop capabilities for fabrication and thereby driving revenue growth of this segment in the Indian semiconductor ecosystem.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Tata Elxsi, HCL Technologies, MosChip, Dixon Technologies, ASM Technologies Ltd., Vedanta Limited, Applied Materials, Inc., Bharat Electronics Limited, CG Power and Industrial Solution, MIC Electronics Ltd., Aura Semiconductor, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. What key factors would propel and impede the industry across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?