India is most lucrative in mobile phone accessories market: Future Market Insights

NEW DELHI: In a recent report released by Future Market Insights, it has been predicted that India will be a major consumer base for mobile phones and accessories globally. According to the Telecom Regulatory Authority of India (TRAI), over one billion mobile phones were being used in India by the end of September 2016. Such staggering statistical figures attest that India serves as the most lucrative country globally, when it comes to the mobile phone accessories market revenue growth. Along with China, India will continue to predominantly contribute towards development of the mobile phone accessories market in the Asia-Pacific (APAC) region. Over $32 billion revenues have been amassed from sales of mobile phone accessories across the APAC region in 2016, with India accounting for a considerable share.

The report details that sales of mobile phone accessories in India reaped $ 1.2 billion revenues in 2015. Over the following decade, the mobile phone accessories market in India will reach a value of $3.5 billion, growing at a stellar CAGR of 10.4%. Products such as protective cases for mobile phones & smartphones and audio gears such as headphones and earphones will be top-selling mobile phone accessories in India, collectively accounting for over one-third of the gross market revenues in the coming decade. Portable speakers and batteries will gain traction in mobile phone accessories market of India by showcasing a combined incremental opportunity of nearly $450 million in the span of next ten years.

Key Trends in India’s Mobile Phone Accessories Market

• Irregular electricity & power distribution infrastructure in India serves as a catalyst for consumption of power banks. In some cases, mobile phone users in India lack proximity to suitable power source, which further necessitates use of accessories such as power banks. Buying power banks that could charge multiple devices in a go, is trending in mobile phone accessories market in India. In the span of next ten years, sales of power banks in India will account for over $350 million in terms of revenues.
• Demand for modular smartphones and mobile phones is likely to increase in India, providing an opportune scope for mobile phone accessories that are limited to compatibility with specific device connectors. Furthermore, various products sold as mobile phone accessories in India have been able to attain compatibility with computers and laptops and vice-a-versa, broadening scope of end-use among consumers.
• Technological advancements are openhandedly welcomed by Indian consumers, triggering an opportunity for sales of other mobile phone accessories such as keyboard attachments, cameras, dongles, selfie sticks, thermal imaging cameras, VR headsets, protective screens and wireless ear buds, among others. With surge in sales of other related products, the mobile phone accessories market in India is likely to generate over $150 million revenues.
• Multi-brand stores are trending as the most-preferred distribution channel for buying mobile phone accessories in India. States in North India will continue to dominate by accounting for over 30% of the market revenues, while states in South and West India will collectively account for half of India’s mobile phone accessories revenues in the span of next ten years.

Mobile phone or smartphone users in India have been actively increasing their exposure to the Internet by availing broadband or ethernet connections. As a result, consumption of mobile phone accessories will remain relatively high, since consumers will presumably opt for mobile phones, smartphones or tablets as a device for entertainment, leisure and other activities relatively. Unfortunately, counterfeit production of branded accessories remains a big threat for mobile phone accessories market in India. Pricing is becoming a key aspect for manufacturers in a bid to safeguard market prominence of their flagship products. Over 40% of mobile phone accessories revenues in India will remain under mid-price range over the following decade.

Vendor Insights: The report has pointed out that companies such as Capdase International Limited and Moshi by Aevoe Group are known for manufacturing protective cases, cables and screen protectors. However, memory cards and flash drives from SanDisk Corp. and Kingston Technology Corporation are prominent companies in India. Sony Corp., Skullcandy Inc. and JBL Incorporated (Harman International Industries, Incorporated) are leading manufacturers of audio accessories for mobile phones in India. Global tech giants such as Samsung Electronics, Apple and Microsoft Corporation are recognized as key players in the India mobile phone accessories market.