After years of anticipation and hype, the Internet of things (IoT) is slowly getting into mainstream business use. The worldwide number of IoT-connected devices is projected to increase to 43B by 2023, and the spending on software and hardware related to IoT is projected to grow rapidly, from $726B in 2019 to $1.1T in 2023. Asia/Pacific accounted for most of the spending on IoT in 2019, with India spending the US $20.6B. Various industry bodies are working along with GOI in making the dream of “Make In India” a reality by developing a vibrant ecosystem for Indian Electronic System Design and Manufacturing (ESDM). This sector is expected to generate $100-$130 Bn. By 2025, thus reducing India’s dependency on Imports on electronic goods and promoting the domestic value chain. [1
IoT Indian Market Scenario
India is rapidly growing as an IoT market and is projected to reach $15B by 2020, accounting for 5% of the global market. Although the country began its IoT journey much later than developed economies, its installed base of connected units is expected to grow faster at an expected growth rate of an estimated 32x to reach 1.9B units by 2020, from its current base of 60M. Key technology factors enabling IoT adoption in India include sensors, networks, standards, augmented intelligence, and augmented behaviors because of the following factors: [2
IoT Indian Applications
- Low cost of storage and computing data on the cloud platform
- Emerging trends on edge computing
- Falling costs of connectivity, sensors, and devices
- Increasing smartphone penetration and mobile app development platforms
With nearly 120 firms offering wide solutions in this segment, India seems to be tremendous opportunities for future growth. Smart lifestyle, connected homes, buildings, and embedded homes are few emerging segments. Healthcare and manufacturing are the leading verticals demanding IoT solutions:
Demand for IoT Electronics
- Manufacturing/Supply Chain: Improved process automation, connected factories, robotics, tracking goods, tools, etc.
- Agriculture: Handheld devices to figure out the moisture/pH factor of soil, etc.
- Transportation: Improved vehicle tracking (GPS), traffic management for reduced waiting times
- Energy: Efficient management of energy usage, potential faults, etc.
- Healthcare Industry: Assistance to people with push-button emergency alerts, automated medication with a supply of medicines, and alerts doctors from the device
Individual IoT devices will require microcontrollers (MCU) to add intelligence to the device, one or more sensors to allow data collection, chips for connectivity, and data transmissions, thus positively impacting the demand for electronic components. It’s also expected that the domestic electronic market will reach $400B by 2025. Huge progress has been made in the areas of single-chip with an acceptable form factor and low power consumption for battery-operated devices, SOCs with embedded cores, GPUs, and integrated wireless connectivity in a single package has led to the development of such sensors that are capable of computing, storing and networking with tiny form factors and operate with low energy. [3
IoT Indian Future
India is expected to have a digital economy of $1T by 2025. The focus on Digital India, National Skills Development Mission of India, and STEM (science, technology, engineering, and mathematics) education, along with 1140+ R&D centers of MNCs, makes India the choice for embedded technology in consumer electronics and IoT. Accelerators and incubators in India are already enabling startups to build innovative IoT solutions and competing with other major economies to make India a preferred destination for IoT products and emerge as an IoT powerhouse.
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We contribute our 40 years of design and manufacturing expertise spanning multiple diverse markets. We look forward to discussing how we can deliver world-class products for OEMs across the globe. We understand our home Indian market, familiar with its vast regulatory and selling environments. We foster growth opportunities within India through our strong technology incubation ecosystem. We also assist global OEMs in entering the Indian market by leveraging the local supply chain and favorable operating environments for cost reductions.
Our flagship Chennai location opened in 2006 and lies within a Special Economic Zone (SEZ) for electronics manufacturing, offering economic incentives for imports and exports. This primary facility is within 90 minutes of the Chennai seaport and 20 minutes to the international airport. Additional road and rail connectivity links to the rest of India and beyond and infrastructure advantages with faster import and export clearances. We also have labor force flexibility, both technical and manual, to scale to demand rapidly.
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