The Indian semiconductor market is a fast growing industry, majorly propelled by demands from mobile devices, telecommunications, and information technology and office automation (IT &OA). According to a joint report by India Semiconductor Association (ISA) and Frost & Sullivan, these sectors contributed about 82 per cent to the total semiconductor market (TM) in 2010. The same report stated that the TM was estimated at US$ 6.55 billion in 2010 and is expected to be US$ 9.86 billion in 2011; projecting a compounded annual growth rate (CAGR) of 22.7 per cent during 2010-12.
ISA is the premier representative of the Indian Electronic System Design and Manufacturing (ESDM) industry since 2005. The trade body is imbibed with an objective to create global awareness for the Indian ESDM industry and support its growth by initiating focussed measures that would develop an appropriate ecosystem.
Localisation of electronics manufacturing is one of the drivers for Indian semiconductor industry. Increased activity on assembling and manufacturing fronts, across related sectors, is going to provide intense leverage to the sector in the years to come.
As per ISA-Frost Sullivan's India Semiconductor Market Update (2010-12), domestic telecom manufacturing would drive 50 per cent of semiconductor consumption during 2010-12 while automotive segment would account for the highest growth in semiconductor demand at 31 per cent during the forecast period.
Another report by the research firm Gartner projects that India's semiconductor revenues would aggregate to US$ 15 billion by 2015. Electronic equipment market, one of the major drivers for the semiconductor industry, is expected to undergo immense progress owing to favourable demographics, increasing consumerism, economic growth and positive Government policies.
The report also states that the communications electronics segment (that includes mobile phones, wireless LAN, public switching and other communications infrastructure equipment) would account for the largest pie of about 52 per cent for India's semiconductor consumption in 2011. Data processing electronics segment comprising desktop computers, laptops, monitors and storage equipment would follow, with about 26 per cent share of total semiconductor consumption.
ISA also honored pioneers in electronics industry by embracing them with ISA Technovation Awards 2011. These awards highlight and recognize the efforts made by players in electronics industry in terms of innovation and excellence.