India Mobile Phone Accessories Market is Estimated to Witness High Growth
Mobile phone accessories such as protective cases, portable chargers, headphones, memory cards and other accessories are essential complements for mobile phones. The increasing adoption of smartphones along with the rising disposable income of consumers in India is driving the demand for mobile phone accessories in the country.
The global India Mobile Phone Accessories Market is estimated to be valued at US$ 2455.97 Bn in 2023 and is expected to exhibit a CAGR of 9.72%over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Increasing penetration of smartphones in India presents a key market opportunity for mobile phone accessories market. India has emerged as one of the world's largest smartphone markets and is expected to surpass the US to become second largest smartphone market globally by 2022. The smartphone user base in India is estimated to reach 820 million by 2022 from around 450 million in 2017 growing at a CAGR of over 11%. With the proliferation of affordable smartphones from domestic and Chinese brands, smartphone penetration is expected to deepen further in the rural and semi-urban areas of the country. This growing smartphone installed base will drive the demand for various mobile phone accessories such as protective cases, portable chargers, headphones and earphones thereby presenting lucrative growth opportunities for mobile phone accessories market players in India.
Porter's Analysis:
Threat of new entrants: The threat of new entrants in the India mobile phone accessories market is moderate. While the market is highly fragmented, mobile phone brands have strongholds with loyal customers. New entrants require substantial investment to develop competitive products and build brand awareness.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have a variety of options to choose from across product segments and a wide range of mobile phone brands and accessories manufacturers. Buyers can find substitute products easily if prices are high.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few raw material suppliers dominate the market, manufacturers can switch to alternate suppliers if prices increase significantly. Suppliers also rely on manufacturers for off-taking materials.
Threat of new substitutes: The threat of substitutes is moderate. While other portable consumer electronics compete for consumer spending, mobile phones remain highly functional devices for communications and media consumption.
Competitive rivalry: Competition in the mobile phone industry is intense.
SWOT Analysis:
Strengths: The India market has a growing middle class with rising disposable incomes. High mobile phone penetration has increased demand for accessories. E-commerce has expanded reach into rural markets.
Weaknesses: Frequent changes in technology and product life cycles leads to high inventory risks. Unorganized sector dominates retail sale.
Opportunities: Growth in demand for wearable devices, power banks, and earphones present new opportunities. Increasing share of online retail channels can boost sales. Emerging technologies like 5G may fuel replacement cycles.
Threats: Rising import duties can increase costs. Stringent regulations regarding e-waste treatment pose compliance challenges. Economic slowdowns impact discretionary consumer spending.
Key Takeaways:
The Global India Mobile Phone Accessories Market Growth is expected to witness high over the forecast period supported by rising incomes, tech adoption and increasing digital lifestyle among Indian consumers. The global India Mobile Phone Accessories Market is estimated to be valued at US$ 2455.97 Bn in 2023 and is expected to exhibit a CAGR of 9.72%over the forecast period 2023 to 2030.
Regional analysis: The mobile phone accessories market in Southern India, led by the states of Tamil Nadu, Karnataka and Telangana is one of the fastest growing regional markets accounting for over 30% market share. The availability of skilled workforce for manufacturing and rise of domestic manufacturing hubs have boosted the growth of the accessories industry in this region.
Key players: Key players operating in the India mobile phone accessories market are Graphic Packaging International, Dart Container Corporation, Konie Cups International Inc., Huhtamaki OYJ, Kap Cones Private Limited, Eco-products Inc., Phoenix Packaging Operations LLC, Detmold Group, Benders Paper Cups, Georgia Pacific LLC, Go-Pak UK Ltd, and Genpak LLC. Graphic Packaging International is one of the leading players focusing on sustainable packaging solutions for the accessories market in India.
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