The Indian telecom equipment market size was estimated at USD 18.48 billion in FY2023 and is projected to reach USD 41.77 billion in FY2031, growing at a CAGR of 10.41% from 2024 to 2031. Increasing mobile subscriptions, coupled with rising demand for 5G services are some of the factors driving the Indian telecom equipment market. India being the second largest telecommunications market in the world, had a subscriber base of 1.17 billion in December 2022.

Additionally, India is witnessing tremendous growth in the telecom equipment manufacturing owing to support from government in form of incentives and schemes being offered to telecom companies in India to make the country a new telecom equipment manufacturing hub.
Telecommunications equipment is now considered a part of networking equipment since they perform similar functions and serve comparable goals. Both rely on software to work effectively and hence require specialists that understand both hardware and software. Telecommunication equipment historically refers to telephone network equipment, but it also encompasses more sophisticated IT technology.

Download Free Sample Report

Increasing User-base of Smart Phones 

The Indian telecom equipment market has seen significant growth in recent years, driven by increasing number of smartphone users in the country. With over a billion mobile phone users and rapidly growing internet penetration, India is one of the world's largest and fastest-growing markets for smartphones. As a result, there has been a surge in demand for telecom equipment, such as network infrastructure, antennas, and other components needed to support the growing number of smartphone users.

Increasing Demand for 5G  

5G can alter India's socioeconomic landscape and development of the complete society. Establishing Pan-India FWA (Fixed Wireless Access) services have the potential to revolutionise the game, particularly in the countryside. 5G is anticipated to bring new opportunities for economic growth by enabling high-speed internet access across different verticals such as healthcare, insurance, banking, telecom etc.

Government Policies

The Indian government has launched several schemes and initiatives to support the growth of the Indian telecom equipment market such as BharatNet project, M-SIPS (Modified Special Incentive Package Scheme), NDCP 2018 (National Digital Communications Policy) and PLI scheme (Production Linked Incentive). The PLI scheme offers incentives to domestic and international telecom equipment manufacturers to produce in India. Under this scheme, eligible manufacturers can receive financial incentives for incremental production of telecom equipment over a period of five years which varies from 4 percent to 7 percent on the incremental sales of manufactured goods.

Impact of COVID-19 on India Telecom Equipment Market

The pandemic had a mixed impact on the Indian telecom equipment market. On the one hand, the lockdowns and disruptions caused by the pandemic have led to supply chain disruptions, which have impacted the availability of certain components and raw materials required for telecom equipment production. This has led to delays in equipment deployment and has affected the rollout of new services. On the other hand, the pandemic has also accelerated the shift towards digital technologies and remote working, which has led to increased demand for telecom services and equipment, including video conferencing, cloud-based services, and other digital solutions.

Impact of Russia-Ukraine War on India Telecom Equipment Market

The ongoing conflict between Russia and Ukraine is not expected to have a direct impact on the Indian telecom equipment market. India is largely self-sufficient in terms of telecom equipment production and has a well-established domestic industry, with both domestic and international players operating in the market. However, the conflict could have indirect effects on the Indian telecom industry, as it may lead to disruptions in global supply chains for components and raw materials used in telecom equipment production.

Report Scope

“India Telecom Equipment Assessment, Opportunities and Forecast, FY2017-FY2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current scenario of the telecom equipment market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities, and forecasts (2024-2031). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.