Introduction
India’s display market is on the verge of a major transformation. Set to triple by 2025, the market could reach an impressive $19 billion, creating a wealth of opportunities for businesses, consumers, and the country’s economy.
With key technologies like LCD and OLED driving growth, India is at a critical juncture to capitalize on this booming demand. The establishment of local display fabrication (fab) units could revolutionize the industry, reduce dependency on imports, and bolster India’s position as a global tech hub.
In this article, we delve into how India can unlock its $19 billion display market potential, the benefits of building local display fabs, and the technological advancements that are shaping the future of this sector.
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Key Takeaways:
- India’s display market will reach $19 billion by 2025, driven by demand for electronics.
- Display units make up a significant portion of the cost for smartphones and TVs.
- Establishing display fabs could add $11 billion in domestic value and $10 billion in exports.
- Display fabs would create 200,000 high-tech jobs and promote innovation.
- India must invest in both LCD and OLED technologies to remain competitive in the display market.
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The Rising Demand for Displays in India
India’s electronics market is expanding rapidly, and a major driver of this growth is the increasing demand for display units. Displays are a key component in smartphones, TVs, tablets, and other electronic devices, and their importance has surged in recent years. According to industry projections, the demand for displays in India will triple by 2025, reaching a value of $19 billion. This presents a significant opportunity for domestic manufacturers and the government to reduce the nation’s reliance on imports, which currently account for a substantial portion of display supply.
Currently, the Bill of Materials (BoM) for smartphones and televisions heavily relies on imported displays, which constitute up to 50% of the total material cost for TVs and about 25% for smartphones. This dependency has raised concerns about self-sufficiency, as the majority of these displays come from countries like China, South Korea, and Japan. By establishing local display fabs, India can not only reduce its import dependency but also meet the rapidly growing demand within the country’s electronics sector.
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The Strategic Importance of Display Fabs in India
India’s electronics industry has long struggled with limited domestic manufacturing capabilities in key components such as displays. While the country has made significant strides in assembling electronic products, the lack of local display fabrication facilities has kept the industry dependent on international supply chains. Establishing display fabs in India would be a game-changer, enabling the country to produce high-quality displays locally and create a self-sustaining ecosystem for electronics manufacturing.
Key reasons why display fabs in India are a game-changer include:
- Boosting Domestic Value Addition: By producing displays locally, India could generate over $11 billion in domestic value addition by the fifth year of fab operations.
- Export Opportunities: With a growing demand for displays globally, India could tap into export opportunities worth $10 billion by the fifth year.
- Job Creation: Establishing display fabs would generate around 200,000 high-tech jobs, providing sustainable employment for India’s growing workforce.
Local display production could also stimulate innovation in display technologies and products, helping India move beyond simple assembly to becoming a global player in the high-tech manufacturing space. As a result, India’s electronics ecosystem could attract further investments, making it a leading destination for tech manufacturing and innovation.
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Global Display Market Dynamics: The Race for Dominance
The global display market is booming. By 2025, it could be worth $126 billion. China, South Korea, and Japan dominate the display industry.
They are leading production with top companies like Samsung and LG. China is investing heavily in display manufacturing.
It is building 12 new fabs to meet demand. As these countries expand, India faces pressure to catch up. India’s $19 billion opportunity could help it do just that. Its growing consumer market makes it a key player in the display sector.
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Key Display Technologies: LCD vs. OLED
Two technologies dominate the display market: LCD and OLED. LCD used to hold 90% of the market share in 2016. But its market share is shrinking.
By 2024, it will be around 60%. OLED is growing fast, especially in premium devices. OLED displays offer better contrast, color, and energy efficiency.
However, LCD remains more affordable and will stay popular in budget devices. India must invest in both LCD and OLED technologies. It must cater to all market segments.
What India Stands to Gain from Display Fabs
Establishing display fabs in India offers several significant benefits:
- Domestic Value Addition: The local production of displays can add more than $11 billion to India’s economy . By the fifth year of operations, reducing the need for imports and strengthening the country’s electronics manufacturing capabilities.
- Increased Exports: India’s growing display industry could open up export opportunities worth $10 billion, allowing the country to become a key player in the global display market.
- Job Creation: The establishment of display fabs could generate approximately 200,000 high-tech jobs, providing employment for skilled workers in various sectors of the tech industry.
- Technological Innovation: India’s focus on display technology could lead to innovations in display-centric consumer products, such as smartphones, televisions, and tablets, improving the global reputation of Indian manufacturing.
- Self-Sufficiency in Electronics Manufacturing: By producing displays locally, India can reduce its dependence on imports, ensuring the country is more self-sufficient in critical components for the electronics sector.
Conclusion: India’s Display Fab Future
India’s display market offers vast potential. Local production is key to unlocking this opportunity.
By building display fabs, India can meet growing demand. It can reduce import dependency and create high-tech jobs. India’s position in the global electronics supply chain can improve significantly.
The government and industry must act fast. Investment in technology, infrastructure, and workforce development is crucial. India’s future in display manufacturing looks bright, with a $19 billion opportunity on the horizon.
