02252018Headline:

Growth of Indian electronic components industry


T
he growth of the Indian electronics industry has triggered the expansion of electronic component industry as well. The electronic components produced in India include, among others, picture tubes, diodes, transistors, power devices, resistors, capacitors, switches, relays, connectors, magnetic heads, etc.

Electronic component industry: Current & future demand

The current demand (total available market) for electronic components

in India is estimated at US$ 9.2 Billion in FY 2009-10. This represents approximately 5.4 per cent of the global electronic component market. The demand is estimated to grow at an average yearly rate of about 12.5 per cent over the next three years and market size is estimated to be around US$ 15 billion in FY 2013-14. This growth will be driven by telecommunication, consumer electronics and automotive electronics industries.

Type of Components 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
ActiveComponents 1.80 1.86(4%) 2.20(18%) 2.27(3%) 2.51(10%) 2.78(11%) 3.09(11%)
PassiveComponents 1.47 1.68(14%) 1.88(12%) 2.22(18%) 2.63(18%) 2.98(15% 3,36(15%)
ElectromechanicalComponents 2.16 2.30(6%) 2.46(7%) 2.84(15%) 3.27(15% 3.63(13%) 4.03(13%)
AssociateComponents 2.09 2.35(12%) 2.66(13%) 3.02(14%) 3.44(14% 3.82(13%) 4.24(13%)
Total 7.52 8.19 (7%) 9.20(11%) 10.35(11%) 11.85(13%) 13.21(12%) 14.72 (12%

Types of electronics components (2009-10)

The Indian electronic component market is dominated by electromechanical components (like printed circuit boards, connectors, etc) and passive components (like wound components, resistors, etc). However, in recent times active components (like integrated circuits, diode, etc) and associate components (like optical disc, magnets, RF tuners, etc) have also witnessed significant growth.

 Demand-supply scenario (2009-10)

The share of imports is higher for specialised and precision components like ICs, chip omponents, PCBs, LEDs, etc.

Demand-supply scenario (2009-10) by type of components

For components which do not require sophistication, India has established a near self-reliance. These components include cables, speakers, CRTs etc. India has also been exporting these components to other countries.

Electronic component industry: Value addition

The value addition in electronic components is extremely limited as most of the raw materials are

either imported or are purchased at high cost.

Electronic component market: Current and future demand

Active components (in million US$) Passive components(in million US$)
Type of Components TotalMarket Indigenous Imports Exports Type of Components TotalMarket Indigenous Imports Exports
integrated Circuits (ICs) 1163 47 1116 - Wound Components 1413 424 989 17
Cathode RayTube(CRT) 789 631 158 7 Capacitor 269 48 221 40
Diode 104 20 84 2 Resistor 81 5 59 2.83
Transistor 83 17 66 3 Piezo-electric Crystal 63 - 63 -
LED 60 5 55 - Crystal Oscillator 54 - 54 -
Total 2199 720 1479 12 Total 1880 477 1386 59.83

 

Electro-mechanical components (in million US$) Associate components(in million US$)
Type ofComponents TotalMarket Indigenous Imports Exports Type of Components Total Market Indigenous Imports Exports
PCBs 630 157 473 52 Optical Disc 298 238 66 834
Connector 607 256 351 97 Magnets 110 11 99 Negligible
Speakers 409 327 82 2 RF Tuners 100 - 100
Switch 377 226 151 80 Heat Sinks 67 - 67  
Cables 373 300 73 33 Magnetron 55 - 55  
Relays 31 17 14 1 Magnetic tapes 10 - 10  
Fuse 15 9 6 1 OtherComponents 2022 - -  
Micro/Stepper Motor 22 - 22 - - - 202 1820  
Total 2464 1292 1172 267 Total 2662 451 2211 834

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