Indian semiconductor market to reach $55 billion by 2026: Report

The Indian semiconductor market is expected to reach $55 billion by 2026, with over 60 percent of the market ruled by three industries such as smartphones and wearables, automotive components, and computing and data storage, Deloitte said in a report.

According to the firm's TMT (Technology, Media, and Entertainment, Telecom) report from 2023, the market will generate as much as $85 billion and six lakh jobs by 2030.

According to the report, India is likely to emerge as a major player in the 5G revolution despite strong economic headwinds, as semiconductor and chip technology with private deployment networks are likely to take off in the 2025-2028 period.

"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 PN Sudarshan, Partner and TMT Industry Leader, Deloitte India.

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," said Peeyush Vaish, Partner and Telecom Sector Leader Deloitte India.

"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," he said.