India's status as a large emerging market that is making progress on the policy environment for a range of sectors, combined with its late developer status in terms of consumer electronics device adoption rates, means we expect it to be a regional outperformer over the medium term. We expect the market to remain on a strong growth trajectory 2015- 2019 , with particularlyrobust demand growth for computer hardware and handsets expected. We forecast the total consumer electronics spend in India will increase by 6.7 % in US dollar terms in 2015 to USD 69.4bn, and then reach USD 90.3 bn in 2019. We expect medium-term growth will be driven by rising incomes, declining device prices and the fact that 45% of India's population is under 25.
Headline Expenditure Projections:
Computer Hardware Sales: USD19.8bn in 2014 to USD20.8bn in 2015; +5.0% in US dollar terms. The tablet market is expected to return to growth after a contraction in 2014, but it will be on a slower growth trajectory than during the initial boom and rapid diffusion of ownership among the core market.
AV Sales: USD14.2bn in 2014 to USD14.7bn in 2015; +3.3% in US dollar terms. AV forecast downgraded in Q3 2015 after slower than expected TV set value growth and we expect it to be the underperforming segment of the market again in 2015.
Handset Sales: USD31.1bn in 2014 to USD33.9bn in 2015; +9.3% in US dollar terms. The smartphone boom will ensure handset sales are again the outperforming category in 2015, but a penetration plateau and price erosion mean the growth rate is expected to be surpassed by the PC market over the medium term.
TABLE OF CONTENTS
Industry View SWOT Consumer Electronics Market Political Economic Operational Risk Industry Forecast Table: Consumer Electronics Overview (India 2013-2019) Macroeconomic Forecasts Economic Analysis Table: Agriculture Weakening, Manufacturing & Services Providing Support Table: Economic Activity (India 2010-2019) Industry Risk Reward Index Table: Asia CE Risk/Reward Index - Q415 Market Overview Computers Table: PC Sales (India 2013-2019) AV Table: AV Sales (India 2013-2019) Mobile Handsets Table: Mobile Communications (India 2013-2019) Competitive Landscape Key Players In Indian Market International Companies Table: Sony Local Companies Table: Karbonn Table: Micromax Table: Lava Table: The MobileStore Industry Trends And Developments Regulatory Development Table: India Government Authority Regulatory News Demographic Forecast Table: Population Headline Indicators (India 1990-2025) Table: Key Population Ratios (India 1990-2025) Table: Urban/Rural Population And Life Expectancy (India 1990-2025) Table: Population By Age Group (India 1990-2025) Table: Population By Age Group % (India 1990-2025) Methodology Industry Forecast Methodology Sector-Specific Methodology Sources Risk/Reward Index Methodology Sector-Specific Methodology Table: Consumer Electronics Risk/Reward Index Indicators Table: Weighting Of Indicators