Indians are expected to buy connected devices, like smart consumer electronics, worth Rs 3.25 lakh crore ($45.7 billion) in 2020 — an 11 per cent growth over 2019, according to a new published by market research firm techARC.
“Users in India are moving beyond Smartphone connectivity and moving to other connected solutions which apart from making them ‘smart’ substantially increase the utility of such devices,” Faisal Kawoosa, Founder & Chief Analyst techARC said while releasing the report “India Connected Consumer Devices Report”.
“Fundamentally, this is being driven by two trends of creating a connected cluster around Smartphones, being the hub and adding connectivity in consumer electronics led by Smart TVs and Smart Speakers,” he added.
Smartphones will continue to lead the sales of connected devices both in value and volume. These are sold at individual levels than household and have higher ASP (Average Selling Price) among such personal connectivity devices.
However, with normal growth outlook for Smartphones, OEMs will explore adjacent products with higher growth prospects where there is still a lot of headroom for growth.
The overall growth outlook for connected consumer devices for 2020 is of normal growth. techARC defines normal growth as a range between 10-25 per cent of annual sales growth. Smart Wearables led by wireless buds (Earables) will see ultra-growth with many brands likely to foray in the segment after Apple’s success in the category. Realme has already launched its wireless buds recently.
Smart Speakers will see high growth in sales as both devices as well as content being made available through them is on the rise. Tablet PCs and Smart Feature phones are the two categories expected to show a continued decline in sales outlook for 2020.
These two device categories have not been able to excite the market beyond a point and there continue to be very limited opportunities for them in the market.
Among ‘Other Connected Devices’, Smart Home solutions have started to pick up. These include smart bulbs, fans and other electric and electronic devices for homes. However, penetration is still very low.
The other segment within these includes of peripherals and accessories where the wireless connectivity is increasingly creating new use cases as well as adding to the digital lifestyle of consumers in India.