What Display Daily thinks: The Make in India campaign has been covered on these pages enough times to make you wonder what is in it for us. Nothing, and there may be nothing in it for you, either. We can only be certain of two things: India has a huge population and that’s a lot of consumers. We also know that India has big holes in infrastructure, political uncertainties and, for its size, it doesn’t deliver the volumes that you would expect.
So, you can chalk that up to market potential and opportunity, which is the glass half full approach. The glass half empty feeling should be that there are way too many entrenched issues for the market to reach its full potential and more uncertainty than any opportunity would call for.
Nevertheless, now is probably as good a time as any to figure out a long term strategy for finding a foothold in the Indian market, and there is no blocker for any enterprising display company. Whoever creates the largest footprint in the Indian display manufacturing sector, whatever that may turn out to be, is looking at a lot of upside, but it is going to require some fortitude and a lot of maneuvering through the maze of politics and partnerships with local entities.
You might never see any reports about OLED penetration in the Indian market but that’s missing the point about the longer term opportunity. And I doubt anyone is going to go out on a limb to predict the future of the Indian market. That’s not how it will work out. The trick to success is to get boots on the ground and to stake territory with displays in small increments. The payoff is there but like any speculative venture, it requires nerves of steel.
One factor that shouldn’t go unnoticed is the wealth of engineering and research talent in the country. Looking at the output of research on semiconductors, displays, and nanomaterials, for example, shows that there is a growing knowledge base that could be the laying the foundations of future developments inside the country. I wouldn’t discount the strategic value of these resources, either.
Indian PC Market Declined in 2023
The Indian PC market, encompassing desktops, notebooks, and workstations, experienced a 6.6% decrease in shipments in 2023, totaling 13.9 million units, according to IDC. Despite this overall decline, the desktop category saw a 6.7% increase, whereas notebooks and workstations declined by 11.1% and 14% respectively. The market recovered in the second half of 2023 with a 12.9% year-over-year growth, led by an 11.4% increase in the fourth quarter. This rebound was supported by growth in both desktops (16.8%) and notebooks (9.9%).
The consumer segment saw a 3.1% decline, while the commercial segment dropped by 9.7%, attributed to reduced enterprise demand. Conversely, the education and government sectors experienced significant growth, at 80.5% and 18% respectively. Both consumer and commercial segments improved in the fourth quarter, with year-over-year growths of 19.3% and 5.3%.
HP Inc. led the market with a 31.5% share, dominating both the commercial and consumer segments. Lenovo followed with a 16.7% share, facing a 17.8% decline in shipments. Dell Technologies was third with a 15.5% share, experiencing a 24.5% year-over-year decline. Acer Group, growing by 16.1%, secured the fourth position with a 12.3% share, and Asus was fifth with a 7.9% share, marking an 8.6% growth.
Market dynamics indicated a shift in the second half of 2023 due to improved market sentiments, import regulation decisions, and vendor strategies, leading to a recovery from earlier declines and surpassing pre-COVID shipment levels.
The Indian Wearable Market
Over the course of 2023, the market experienced a significant growth of 34%, culminating in a record 134.2 million units shipped. This growth is particularly notable in the fourth quarter, which saw shipments of 28.4 million units, marking a 12.7% increase year-over-year. Despite the festive period bringing about a flurry of new launches, promotional offers, and discounts, the latter half of the year faced challenges with overstocking. This situation contributed to a decline in the average selling price (ASP) of wearables, which fell by 15.4% from US$25.0 to US$21.2 in the fourth quarter of 2023.
The smartwatch segment within the wearable market stood out with a staggering 73.7% year-over-year growth, shipping 53.4 million units and significantly increasing its market share. However, the surge in sales, driven by festive discounts, led to a sharp drop in ASPs for smartwatches. In contrast, the earwear category saw a modest growth of 16.9%, with the Truly Wireless Stereo (TWS) segment making significant gains. The overall ASP for earwear also declined, albeit at a slower pace compared to smartwatches.
The competitive landscape among vendors remained vibrant, with top players like BoAt, Noise, and Fire-Bolt maintaining their dominance through diversified product offerings and continued innovation, despite the lower ASPs. New entrants and strategic moves by existing players, such as Titan’s ascent in the smartwatch category, underscored the dynamic nature of the market. Additionally, the shift in consumer purchasing channels, with a notable increase in offline channel shipments outpacing online growth, highlighted the evolving retail strategy within the wearable sector.
This trend threatens to dilute the market and challenges incumbent vendors to devise new strategies to attract and retain customers. The smart ring category, though relatively new, showed promising growth, indicating a potential area for innovation and market expansion. Looking ahead to 2024, IDC predicts a more cautious single-digit growth but anticipates significant developments in product offerings, including smartwatches with advanced connectivity and health features, and earwear equipped with premium features at more accessible price points. This forward-looking analysis suggests a wearable market that is rapidly evolving, driven by technological advancements, consumer demand for affordability and functionality, and the strategic agility of vendors.
