India’s semiconductor consumption is set to grow 20 per cent this year to reach revenue of over $9bn – the fastest growing market in the world thanks to an explosion in mobile phone, LCD TV and PC production.
The new figures, which come from Gartner’s latest update to its Semiconductor Consumption forecast, reveal a booming economy driven by a growing middle class with a rising disposable income.
The growth of 20 per cent from 2011 to reach $9.2bn (£5.8bn) this year in India way outstrips global semiconductor spending of just four per cent to reach $313bn in 2012.
"Semiconductor consumption in India is being driven from the changing demographics, increasing consumer affluence, economic growth and favourable government policy," said Ganesh Ramamoorthy, research director at Gartner.
“Global electronic equipment manufacturing companies continue to expand their production facilities in India. The recent announcement by Nokia to move its mobile phone production facilities to Asia/Pacific is bound to benefit India as well, where Nokia already has a large production facility catering to the growing domestic and neighbouring markets in the region.”
Three-quarters of semiconductor consumption in India will come from mobile phones, PCs and LCD TVs with production of mobiles expected to jump 21 per cent, PCs seven per cent and LCD TVs a whopping 47 per cent, according to the analyst.
Alongside the likes of China and Brazil, India is making a name for itself as an epic consumer of technology.
IDC has predicted that it will leapfrog the UK into third place this year in the global smartphone market, for example, while Gartner also put it in third on the world stage when it comes to fastest growing enterprise software markets over the next four years.
A compound annual growth rate of 23 per cent in the period 2010-2016 will also propel the country into second according to new research from Boston Consulting Group on the internet economy. ®