India To Have 1 Billion Smartphone Users By 2026, As Rural India Comes Online
The demand for smartphones is expected to spike at a CAGR of 6 percent to reach around 400 million smartphones in 2026, from 300 million in 2021.
India will see around 1 billion smartphone users by 2026 with a major push coming from rural areas, according to a study conducted by Deloitte (reported first by PTI).
Also Read: Indian Smartphone Market Grew 7% In 2021, Despite Pandemic Disruptions
As of 2021, India has around 1.2 billion mobile subscribers of which 750 million use smartphones. India is looking to become the second-largest smartphone manufacturer in the next five years.
The report highlights that this growth will majorly be due to the rural sector at a compound annual growth rate of 6 percent, whereas the urban sector¡¯s growth will be at a CAGR of 2.5 percent from 2021 to 2026.
The rise of internet-based devices in the rural market will also get a push from the nation¡¯s plan to fiberize all villages by 2025 under the BharatNet programme.
The Deloitte report highlighted that 95 percent of replacements in the urban market in 2026 will be towards new smartphones whereas only 5 percent will be towards pre-owned smartphones. In 2021, this number sits at 75 percent and 25 percent respectively.
The demand for smartphones is expected to spike at a CAGR of 6 percent to reach around 400 million smartphones in 2026, from 300 million in 2021.
Also Read: Apple, Samsung Could Make In India Smartphones Worth Over ?37,000 Crore This Year
This rise in demand could be due to 5G connectivity offering high-speed gaming, remote healthcare etc. In fact, post 5G launch, additional shipments of smartphones are expected to be around 135 million by 2026.
As per the report, total cumulative shipments of smartphones in the country are expected to reach 1.7 billion over 2022-2026 creating a market of around $250 billion from which nearly 840 million 5G devices are expected to be sold at a span of five years.
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