Indian contract electronics industry has faced ongoing challenges for years, and just as one segment appears to be savior for some EMS manufacturers in India targeting smartphone markets, the capital intensive nature of telecom infrastructure needed to support the greater Indian handset market, pressured by dim prospects for telecom CapEx spend, could impact Indian EMS providers and handset OEM companies serving India.
 |
Click to request custom list of EMS manufacturers in India |
Telecom spend in India is sluggish according to a report put out by investment bank UBS. In addition to lower telecom spend, additional Indian infrastructure segments over the past 15 years have also been impacted.
In your search results, you can further target your options such as specific End Markets, plus you can choose multiple Geographies and/or additional Services.
Results of the UBS report highlight a survey of 3,000 companies during this period, with projected pipelines in power, metals, oil and gas, and telecom across India, which, combined, contributed 58% of total CapEx, and noting deceleration and sluggishness. You can see telecom CapEx highlighted below.
Indian telecom CapEx growth slows (15 year period)
Looking further into the Indian handsets market, as feature phones and smartphones play into the telecom infrastructure from am end user perspective, below is Indian market penetration by handset comparison, and consumer market share, by OEM smartphone brand in India according to J.P. Morgan and IDC.
India mobile handsets market comparison
In your search results, you can further target your options such as specific End Markets, plus you can choose multiple Geographies and/or additional Services.
Indian smartphone market share by brand
Below, respective market share in India for smartphone makers Xiaomi, Samsung, Vivo, Oppo, RealMe, and others.
For those reading, wondering when Indian CapEx might pick up, UBS estimates it would take at least two years of about 10% growth to reach around 90% utilization – the level the bank’s research identifies where the private sector has historically started to order new capacity – which then translates to increased demand for telecom equipment product design and manufacturing services.
SEE ALSO
Global manufacturing tariffs and trend info
South East Asia manufacturing
Asia labor costs
Despite challenges India faces, there remains high demand for further infrastructure development across Asia with wide variation across different Asian economies. To place India’s broader infrastructure ranking into perspective compared to other nations, see chart below.
Quality of infrastructure ranking (out of 140 economies)
Taking India’s infrastructure ranking into consideration, one cannot ignore under Modi’s government, as revealed by investigative journalists, Indian government gamed rankings for World Bank’s ‘Ease of Doing Business Rankings’ by prioritizing minor institutional and procedural tweaks v. making bold economic reform as promised. Read more on this here.
RECOMMENDED READING
India EMS manufacturing trends and resources
OEM decision makers careful with their outsourcing due diligence can still find suitable contract EMS manufacturers in India matching OEM program requirements. When quoting, we suggest review of our EMS RFQ best practices, and key steps and process review for selecting EMS manufacturing partners.
Finding suitable contract electronics providers
Search our global directory of EMS company listings here. Electronics OEM decision makers can also request a list of EMS manufacturing providers in India, or greater Asia (its free), matching your outsourcing program requirements by clicking here, or you can also click the map image below.
ADDITIONAL RESOURCES
Request list of EMS provider facilities in Silicon Valley
Request list of EMS providers anywhere (worldwide)
Get list of EMS manufacturers for your requirements (Its free)
Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.
