India’s semiconductor market to reach $55 billion by 2026: Deloitte

A report by Deloitte estimated that the Indian semiconductor market may reach $55 billion by 2026 with more than 60% of the market being driven by three industries

File photo of semiconductor chips | Photo Credit: REUTERS

The Indian semiconductor market is to reach $55 billion by 2026 with more than 60% of the market being driven by three industries: smartphones and wearables, automotive components, and computing and data storage, according to a report by Deloitte.

This market will expand to as much as $85 billion and generate six lakh employment opportunities by 2030, the firm predicted in its 2023 TMT (Technology, Media, and Entertainment, Telecom) report.

Despite strong global headwinds on the economic front, India is expected to emerge as a major player in the 5G revolution, as semiconductor and chip technology with private deployment networks are likely to take off in a big way during 2025-2028 period, the report said.

‘’Production Linked Incentive (PLI) and Design Linked Incentive (DLI) package is expected to attract investments and establish India as a centre for semiconductor manufacturing. We anticipate market and portfolio, manufacturing, R&D, and talent as the dimensions for growth prospects by 2026,” said, P. N. Sudarshan, Partner and TMT Industry Leader, Deloitte India.

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About 5G, the report said that the growth of 5G Standalone (SA) networks is expected to accelerate private network deployment.

“Satellite companies are also at the forefront of innovation in communication technology, developing next-generation, powerful, high-throughput Ka-band satellites, increasing coverage area and utilizing cutting-edge technologies for secure connections,” said the TMT report.

“As the 5G private network ecosystem continues to evolve, stakeholders need to collaborate and create India-centric use cases that demonstrate the technology’s impact across industry verticals. The potential benefits of 5G private networks in sectors, such as manufacturing, retail, agriculture, transportation, and health care cannot be ignored. It is time for Indian enterprises to explore the possibilities and take a leap in their digital transformation journey,” said Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India.