India Electronics and Semiconductor Industry : Opportunities for Japanese Engagements - JEITA
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India Electronics and
Semiconductor Industry :
Opportunities for
Japanese Engagements
October 2014
IESA
India Electronics and Semiconductor Association
(IESA)
Extends a Warm Welcome to all
for this JWG meeting.
IESA is committed to work together with the key
stakeholders to realise the vision of
Development and Growth of Electronic Systems
Design & Manufacturing (ESDM) sector and achieve
WIN-WIN proposition with Japan companies.
IESA 2
Dominated by young people with 60% of the
1.2 Bn Population between 15-54 age group
India has the 2nd largest pool of engineers
and scientists in the world
10th largest economy in the world, 3rd
largest by 2030.
World's third-largest economy in
purchasing power terms.
In the next three years, up to 25% of the 220 out of Fortune 500 companies
world's new workers will be Indian.s outsource to India
India's GDP per capita will quadruple from Half the world’s outsourced IT services
2007 to 2020, according to Goldman Sachs come from India
3
IESA
Indian ESDM Industry: Revenue Forecasts Split by 2013 TM Revenues of
Product and Services (2013-2018) Domestic Electronic Product Market
= $50.61 billion
140.00 128.7
75.61
115.8
120.00 104.3 23.14 Others
94.2 20.20 Industria 6%
Revenues ($ Billion)
100.00 84.2 17.66 l
75.6 Mobile
15.46
80.00 13.68 IT / OA 7% Devices
12.08 18% 38%
60.00 105.53
95.61
78.74 86.68
40.00 70.48
63.53
20.00
Automotive
0.00 7% Telecommunications
2013 2014 2015 2016 2017 2018 Consumer Electronics 7%
17%
Product Industry Size Services Industry Size
Very High demand for 3G and Smart Phones drive Mobile Devices growth
Tablets, Notebooks and Memory Cards position IT/OA as the second biggest contributor
Rapid growth in FPD TV market, Digitization drive propels STBs to make Consumer electronics the
3rd biggest revenue contributor
4
IESA
20 products constitute 80% of local consumption
Aim to meet 50 percent of demand by local high value addition by 2018
Indian Electronics Market: Top 20 Products by TM Revenues (2013)
2013 Electronics Product TM = Revenue
Revenue % of Product
Product $50.61 B. % of Total
Total
Mobile Phones 38.85%
Focus on High Value add Base Stations 1.61%
opportunities for Immediate
FPD TV 7.91% Impact : STB, Smart Power Supplies 1.28%
Energy meters, LED
Set Top Box 1.13%
Notebooks 5.54% lighting, smart cards and
auto Electronics( DRM Printers and FPDs 1.06%
Desktops 4.39%
radio’s, Body Electronics), Routers/Switches 1.05%
Digital Camera 2.73% Defence, Payment
Inverters and UPS 2.65% terminals. Car Radio 1.02%
Memory cards Focus on developing key CFL 1.00%
2.46%
and USB drives
components and its Energy Meters 0.66%
4W EMS 2.33% ecosystem : PCB, Processor, Digital Instrument
LCD Displays, Power 0.58%
LCD Monitors 2.02% Clusters
Devices and battery.
Servers 1.72% Smart Cards 0.52%
Total of Top 20
Total of Top 10 80.52%
70.60% Products
Products
Source: ISA and Frost & Sullivan
5
IESAOpportunities in the electronics ecosystem
Opportunities for collaboration and
Joint Ventures
Developing the entire
Assembly / testing of
R&D and design in value chain of
finished equipments,
semiconductor design manufacturing from
manufacturing of
and electronic systems. components to creating
accessories and others.
end products in India.
6
IESAAutomotive Electronics
Strong Leverage for Japan Companies
4.5 CAGR
TM:10.2% India Market : 3 Mn Cars and 16 Mn 2-wheelers.
4 TDM (overall): 14.6% 4.23
TDM (Low/Med value add) : 16.1%
TDM (High value add): 9.3% 3.81
3.5
3.44 Japan companies have very good positioning :
3
3.12 2.65 SUZUKI, Honda, Nissan, Toyota, Kawasaki, etc.
2.87
2.5 2.72 2.3 0.52
2.01 0.47
2 1.74 0.43 Opportunities for :
1.41 1.54
1.5 0.36
0.39 Car Entertainment ( inc. DRM ).
0.33
1 1.83
2.13 Mix of factory and dealer fitments.
1.58
1.08 1.18 1.35 ADAS : New emerging area.
0.5
Japan approach similar to Indian.
0
2010 2011 2012 2013 2014 2015 Body Electronics : Fitment to grow.
Total Domestic Manufacturing (High Value Electronics content increasing.
Add, $ Billion)
Total Domestic Manufacturing (Low & Security is by default.
Medium Value Add, $ Billion)
Source: ISA - Frost & Sullivan
7
IESA 7Consumer Electronics and Appliances
Strong Reputation for Japan Brands and Companies.
12 CAGR
TM:15.0%
Key Demand drivers :
TDM (overall): 18.1%
TDM (Low/Med value add) : 39.7%
11.64 FP TV : 12 Mn, Home Appliances: 40 Mn
10 TDM (High value add): (26.6)%
10.16 STB : 20 Mn , Camera’s: 6 Mn
8 Demography Shift :
8.84
Strong Growth Potential.
7.62
6 4.98 Transportation costs and duties:
6.65
5.93 0.39
4 3.82 Attractive to Make in India.
2.97 0.46
2.72 2.56 2.64
0.61
0.96 4.59
2 1.78 1.36 3.36 Opportunities for :
1.68 2.36
0.94 1.2 STB Tuners / LNB’s.( No local content)
0
2010 2011 2012 2013 2014 2015 FP TV / LED TV.
Total Domestic Manufacturing (High Value
Home Appliances.
Add, $ Billion)
Source: ISA - Frost & Sullivan
8
IESA 8Defence , Aerospace and Internal Security
Market opening up. Local tie up is key enabler.
• Market Potential of 500 Mn$ per year.
• Policy initiatives as trigger : Offset , DPP, FDI ( 49% ), MSIPs, EMC’s.
• The main areas of interest are dual use technology for defense and int security.
• IESA Event : DEFTRONICS : Huge success and Interest from Global Companies.
Japan considered FRIENDLY Partner.
Potential for SME’s.
Defence Capital spend trend in India. High Mix- Low Volume. Specialised equipments
INR K Cr.
180
154 Tie Up /Partnership :
160
140 126 with Local Companies presence is a enabler.
120 102 137
100 83 118 Opportunities for :
80 61 100
48
60
34 Connected N/W's of sensors
40 Integrated surveillance systems
20
HI- Reliability tested custom micro electronics.
0
2006 2008 2010 2012 2014P 2016P 2018P
Communication Systems.
Automotive systems for defense use- fuel efficient
vehicles.
Broad based sensor technology- motion detectors,
thermal imagers, gas sensors etc.
9
IESASemiconductor Design
India can contribute to Japan companies worldwide success
Matured and Growing Indian design
ecosystem
25.00 Semiconductor Design Market
20.00 CAGR (2011-2015): 13.3%
Product customization for local needs
15.00
21.1
10.00 18.6
14.5 16.4 Re-engineering opportunities
11.5 12.9
5.00
0.00
2013 2014 2015 2016 2017 2018
Increasing capability of third-party
service providers and Indian design
companies
Opportunities for Japan Companies :
Setting up Captive Design Centers.
Outsourcing Design services from India for Global Markets.
10
IESAOther areas
Area Opportunity
Healthcare Focus sector of Government;
Development and manufacturing of medical
electronic devices and products has large
Renewable Energy Solar PV manufacturing and technology
with focus on Solar development
Smart Cities Allocation of $1.2 billion by Government in the
current FY 2014-15; budget allocation expected
to be higher next year
Electronic components PCBs, Active & Passive components (like chip
resistors, capacitors, connectors)
11
IESA• Established in 2004 - The voice of the electronics, semiconductor and
embedded systems industry in India with over 230+ members
including domestic and international companies.
• IESA's GOAL is to Facilitate ESDM industry to create local design
and High Value added manufacturing Eco System in India.
• IESA's STRATEGIC APPROACH:
– Knowledge/Business Partnership with GoI and State Governments:
• Shape and Drive implementation of policies : enable governance.
• Investment promotion, Job Creation: Economic development.
• Market Insights and trends : Industry Think Tank and Market Research/feedback
– Grow and Mentor: Talent, Innovation, Entrepreneurship
– Build Brand India: Destination for ESDM
– International Alliances: Bilateral business growth and sharing best
practices
12
IESA• IESA Vision Summit 2015 – the 10th edition of the
flagship event is being held on 2nd & 3rd February 2015.
• This event will be host to policy makers, senior
government officials from Government of India & states,
and, over 650 delegates at senior management level
from India and abroad
• Ideal platform to gather information on policy initiatives,
market opportunities and business networking
• We invite Japanese companies to attend the event and
leverage the opportunities it offers
13
IESALeverage your R&D and Manufacturing spends to drive India as
your destination for
Innovation Led Design …. Design Led Manufacturing strategy
Establish structured collaboration frameworks between Japan
and Indian companies for development of electronics products :
Make in India
Collaboration on product development and R&D – joint
programs similar to MATIMOP and UKTI funded initiatives we
are already running, and based on the GoI-NSF model already in
place
14
IESATHANK YOU
For more info contact :
rajiv@iesaonline.org
+91 9811351015
president@iesaonline.org
chairman@iesaonline.org
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