Sub Sectors
Industrial Automation
Industrial automation refers to the use of intelligent machines and programmable logics to automate several industrial processes and to minimize human intervention. The automation improves the efficiency and quality of the output and maintains consistency throughout the micro and macro-level processes across the industries. It has become essential for companies to maximize their productivity through automation owing to the changing demands of the end-users.
Industrial Automation Market in India will observe a significant CAGR of 7.1% during the forecast period of FY’20 to FY’25. Therefore, it is expected that in the near future, the market for industrial automation in India will grow at a significant pace. Indian industries are preparing to face global competition by undertaking the Make in India programme, and it is all set to lead the world with Smart Manufacturing which relies heavily on Industry 4.0 technologies.
- From our market report we have estimated that around 1,74,000 jobs are created will be created during the period of FY’20 to FY’25 the growth.
- One of the major factors driving the growth of the Industrial Automation Industry is factory automation on account of the rising efforts to make manufacturing processes more efficient and reduce defect rates.
- The adoption of Industry 4.0 technologies and Industrial Internet of Things (IIoT) becomes imperative to increase competitiveness and build efficient value chains.
PCB Design & Manufacturing
Printed Circuit Boards are the backbone of all electronic devices powering the global economy. PCBs have been instrumental in reducing the size of such devices across segments like Consumer Electronics & Mobile Phones to Industrial Electronics, Defense Electronics and Computer Hardware.
The Indian PCB manufacturers have a strong capability in manufacturing of single-sided, double-sided PCBs, and multi-layer PCBs having 4-6 layers. These manufacturers have adopted high mix-medium volume strategy when a large number of PCBs are manufactured in low-to-medium volume. Globally, the demand for flexible circuits is expected to grow much faster than that for rigid PCB, primarily due to its advantages such as form factor reduction and elimination of connectors.
- Employment in the PCB industry is expected to grow by 36,000, and reach 56,000 employees during the 5-year period between 2020 and 2025. .
- This growth in employment is expected to be dominated by the PCB manufacturing segment which would accommodates around 90% of the employment generation.
- This growth in demand will facilitate demand for PCB manufacturing companies, which in turn will create opportunity for employment.
- The growth in employment is expected to accelerate post 2021, mainly driven by the introduction of large scale mobile manufacturing facilities in India.
PCB Design & Manufacturing
Printed Circuit Boards are the backbone of all electronic devices powering the global economy. PCBs have been instrumental in reducing the size of such devices across segments like Consumer Electronics & Mobile Phones to Industrial Electronics, Defense Electronics and Computer Hardware.
The Indian PCB manufacturers have a strong capability in manufacturing of single-sided, double-sided PCBs, and multi-layer PCBs having 4-6 layers. These manufacturers have adopted high mix-medium volume strategy when a large number of PCBs are manufactured in low-to-medium volume. Globally, the demand for flexible circuits is expected to grow much faster than that for rigid PCB, primarily due to its advantages such as form factor reduction and elimination of connectors.
- Employment in the PCB industry is expected to grow by 36,000, and reach 56,000 employees during the 5-year period between 2020 and 2025. .
- This growth in employment is expected to be dominated by the PCB manufacturing segment which would accommodates around 90% of the employment generation.
- This growth in demand will facilitate demand for PCB manufacturing companies, which in turn will create opportunity for employment.
- The growth in employment is expected to accelerate post 2021, mainly driven by the introduction of large scale mobile manufacturing facilities in India.
E-Mobility & Battery
Despite being small in terms of absolute size of the industry, the e-Mobility and battery space in India has been in a constant state of flux for the past few years. The industry has been attracting interest from both established conglomerates and start-ups trying to solve problems and create value. Batteries are an integral part of the EV ecosystem and the falling cost of batteries is expected to drive this growth throughout the next decade.
- It is estimated that approximately 505,000 additional jobs will be created in the e-Mobility and Battery industry during the period between 2019-20 and 2024-25.
- The compounded annual growth rate of employment in the industry is estimated to be more than 68.5 per cent over this period.
- The employment generation in the Indian e-Mobility & Battery industry would not only be driven by the increasing penetration of EVs in the automobile market, but also through the implementation of innovative business models around the ownership and usage of EVs.
- The Government is working to create a competent workforce specializing in the various sub-segments to bolster the EV ecosystem - manufacturing, design & testing, battery manufacturing & management, sales, service and infrastructure support.
Semiconductor & Components
The Indian semiconductor industry has a fabless ecosystem hosting the R&D and design capabilities of major global players. Over the past decades India has become a hotspot for fabless IP or SoC design primarily due to the availability of vast domain knowledge at lower cost as compared to Europe and USA. However, the Indian Fabless semiconductor industry, as a whole contributes very little to the global semiconductor industry
India is a major hub for Fabless Semiconductor Designing, with the presence of more than 250 companies. Communications, IT and Consumer Electronics segments are the major end-user segments that are driving the growth in semiconductor demand in India. These segments are in turn being driven by the trend towards building smarter cities, IoT architecture for industries and the Digital India initiative.
- It is estimated that the industry would employ about 65,000 more employees by the financial year 2024-25. This job creation over the next 5 years is expected to take place at a CAGR of 10 per cent.
- During this period, the Indian semiconductor industry would continue to be dominated by the existing fabless ecosystem. Thus, the industry will continue to create employment in the design function to meet their requirement for design engineers.
- Due to the new initiatives of the Indian government to bring the schemes like SPECS, will boost the establishment of fabrication labs in India, that drives the employment growth in the manufacturing segment of this sector.
Solar & LED
India’s geographic location within the tropical belt bestows it with an abundance of solar radiation, which has been a major resource for the solar energy market in the country. India enjoys 300-320 sunny days and 3,000 hours of sunshine each year which is equivalent to over 5,000 trillion kWh. In India, almost all the regions receive 4-7 kWh of solar radiation per sq. meter with about 2,300– 3,200 sunshine hours per year, depending upon the location. Key regions getting very high sunshine are the states of Rajasthan, Gujarat, parts of Tamil Nadu, Madhya Pradesh, Maharashtra, Telangana and Karnataka.
The lighting industry has been seeing a similar push from the Government for the replacement of basic and inefficient incandescent, halogen and fluorescent lamps with modern LED lights in order to reduce electricity consumption. It is expected that LED lighting would reduce energy consumption for lighting across the country from the present 18 per cent level to 13 per cent of the total power consumed in the country.
- It is estimated that about 235,000 additional jobs in the solar industry and about 29,000 additional jobs in the LED industry would be created during the period between 2019-20 and 2024-25.
- The employment growth in these industries would grow at a CAGR of about 12 per cent and 8 per cent respectively, to register an overall growth rate of about 11.6 per cent CAGR during this period.
- Both the solar & LED industries are extremely fast paced industries, not just in terms of market growth, but also in terms of innovation and technology development.
- These emerging technologies require the work force to be trained and re-skilled to cater to the changes expected to be seen in the market.
Security & Surveillance
There are five sub segments of Security & Surveillance sub-sector of the Electronics Sector. These sub-segments are Security & Surveillance Systems, Fire & Safety Systems, HVAC Controls, Lighting Controls and BMS Solutions. All these systems fall under the larger umbrella of Building Management Systems (BMS) market. Building Management Systems are deployed in buildings for efficient energy performance. It controls and manages building facilities such as lighting, electricity, fire precautions, safety, security, and HVAC. Shift towards Green and Smart buildings is rising the demand for BMS in India. Demand is arising from segments such as large offices, Information Technology and Technology Parks, commercial complexes, multiplexes, malls, and airports.
- It is estimated that the industry would generate about 85,000 more jobs by the financial year 2023-24. This increase would raise the number of people employed in the industry to 185,000. This job creation in the industry is expected to take place at a CAGR of about 13 per cent over the next 5 years.
- Large purchases are expected to be seen under the Smart City scheme across 100 cities. With estimated 60-100 sensors on an average vehicle, mobile surveillance provides a vast untapped opportunity in the Indian market.
- The evolution of advanced concepts like Artificial Intelligence and Deep Learning is opening up new dimensions of the security and surveillance industry.
- Along with AI and ML, technologies like BigData, FastData, Cloud Computing & Edge are providing value by enabling deeper and wider analysis of security & surveillance data.
Communication & Broadcasting
The products covered under this sector were Network products (routers, modems and switches) Set Top Boxes (includes cable technicians as service support), PBX, FTTH/DOCSIS (PON Passive optical network, GPON, EPON), Splitter and Connector. The Communication & Broadcasting industry has witnessed robust growth in the last few years, primarily due to increase in per capita expenditure, improving life styles, penchant for greater connectivity and information among the populace and a consequent acceptance of gadgets and appliances in their daily lives.
- It is estimated that approx. 1,70,000 additional jobs will be created during the period of FY’2020 to FY’2025, growing 7.3% CAGR.
- All manufacturing and services sectors associated with Set Top Boxes have been responsible for driving this growth.
- With the advent of Internet-on-TV, however, the demand for Cable Technicians is expected to grow exponentially in the next few years.
- Since the new age IIOT is coming in most manufacturing lines, CE lines are also thinking of adapting new techniques and they need their Staff and Managers to have new skill sets in Handling Robotics, Data analytics ability, VR, AR, AI and Familiarity with Nanotechnology and robotics.
Consumer Electronics & IT Hardware
The products covered under this sector were, Television sets and remote control Air-conditioners, Refrigerators, Mixer/ Grinders/ Juicers, Washing Machines, Water Purifiers Personal Medical Devices Other Small Home Appliances, Services for Mobile Phones. The Service industry in the CE & IT Sector is expected to be a major Jobs Creator in India. The Service industry is also the preferred choice of millennials as it offers good pay packages and an opportunity to climb up the corporate ladder fast. Given this symbiotic relationship, prospective hires in this segment form the most desirable section of the population that could benefit the most from skill enhancement efforts. Skill enhancement is a key requirement to be recruited in this sector. The fast expansion in the Service sector is expected to increase the presence of the Unorganized segment in the market. With increased presence of E-Commerce companies in this segment, third-party installation and after sales services are expected to grow triggering greater hiring in the unorganized sector.
- It is estimated that approx. 16,65,800 additional jobs will be created during the period of FY’2020 to FY’2025, growing 8.9% CAGR.
- New Technologies such as IOT, Smart Products & AI are becoming new norm. Software integration is coming in a big way in most CE Products.
- Most CE Products are now coming out with new features and more advanced features. So essentially, the entire service networks which has been addressing these products need learning and skill development in new technologies used in the CE products.
Electronics Manufacturing Services
Electronics Manufacturing Services (EMS) is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies. The electronics manufacturing services (EMS) market is dynamic, and the demand for electronic components and outsourced manufacturing services is growing..
The industry is forecast to grow at a compound annual growth rate of 7.7% between 2020 and 2025, according to the market research. Growing demand for consumer electronics and innovative technological advancements allows manufacturers to capitalise on current opportunities. According to Market Research engine, the major driving factors of the Electronics Manufacturing Services (EMS) market are:
- Rising demand for automotive electronics - the surge can be credited to the demand for safety systems.
- Growing demand for consumer electronics.
- Advanced skill and focus on core competencies - companies are searching for solution providers that provide expertise in their specific field or market sector.
- Proliferation of mobile devices - (The market for Android devices, iPhones and wearable technology is continually growing).