October 22, 2024 /SemiMedia/ — India's chip market reached $45 billion in 2023, according to research data from the India Electronics and Semiconductor Association (IESA) and Counterpoint Research. It is projected that India's market could surpass those of Japan and Europe by 2024.

Data from the World Semiconductor Trade Statistics (WSTS) showed that Japan and Europe had chip market sizes of $46.75 billion and $55.76 billion, respectively, in 2023, slightly ahead of India. However, both markets have seen a decline as of the first half of 2024.

India's semiconductor market is expected to grow to $64 billion by 2026, driven by both domestic demand and export opportunities. The report also forecasts a compound annual growth rate of 13% for India's chip market between 2023 and 2030.

"India, as one of the world's largest smartphone markets, is powered by the semiconductor industry, which has far-reaching commercial, strategic, and social impacts," said Ved Prakash Mall, Director of IESA. The report highlights that mobile phones, IT, and telecom sectors lead the semiconductor industry, accounting for more than 75% of its revenue.

Tarun Pathak, Research Director at Counterpoint Research, added, "The mobile phone sector dominates India's semiconductor market. With more consumers shifting from feature phones to smartphones, the mobile industry plays a crucial role in India's digital transformation."

Ashwini Vaishnaw, India's Minister of Electronics and Information Technology, stated earlier this month that India is on track to become the next global semiconductor hub, as the country makes significant investments in the sector.