Smartphone Market insights

The market is driven by increased purchasing power, rise in the adoption of internet and data services, and introduction of smartphones with updated features at affordable prices. The launch of 5G smartphones is expected to bring exponential growth to the market in the coming years.
The market is expected to expand at a CAGR of ~14.46% during the 2021 – 2026 period to reach a shipment volume of 304.75 million units in 2026. Android smartphones account for ~95.50% of the total volume of shipment, followed by iOS smartphones at ~2.86%. In 2020, Xiaomi led the business with a 27.25% shipment share, followed by Samsung (21.50%).

Impact of COVID-19

In the wake of the pandemic, the government imposed lockdown measures that reduced outdoor activities, resulting in a decline in the sale of smartphones at offline stores. The demand for smartphones surged, primarily because of remote learning, as well as virtual social gathering. Several people lost their jobs, while some took pay cuts. As a result, they refrained from purchasing devices with upgraded features.

Government initiatives

Several initiatives undertaken by the government have influenced the smartphone market. The Production Linked Incentive (PLI) scheme provided all electronics manufacturing companies with registered manufacturing units with a 4% to 6% incentive on incremental sales. The Modified Electronics Manufacturing Clusters scheme offered financial incentives to mobile phone manufacturers to develop world-class infrastructure and common facilities and amenities.

Key growth drivers of the market:

• The pricing pattern followed by the manufacturing companies, along with exclusive online distribution led to the spurt in demand for smartphones
• Consumers’ preference shifted from standard feature phones to smartphones because of increased internet penetration to the internet

Key deterrents to the growth of the market:

• The high usage of smartphones has led to a rise in the number of cybercrimes occurring in the country
• The design and technology used by smartphone manufacturing companies have not met consumer expectations

Competition analysis

Smartphone users are inclined toward using Android over iOS or other operating systems. The key players include Xiaomi Technology India Private Limited, Samsung India Electronics Pvt. Ltd., and OPPO Mobiles India Pvt. Ltd.

The global electric motor for household appliances market is expected to witness exponential growth during the forecast period

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Retail Banking Market segment insights

In FY 2021, in terms of deposits, public sector banks held the highest market share (~61.26%), followed by private sector banks. The contribution of public sector banks, in terms of deposits, declined by 1.12 percentage points in FY 2021, as compared to FY 2020.

Private sector banks registered a rise in the number of ATMs, both off-site and on-site, while public sector banks experienced a decline. There were 57,679 off-site public sector bank ATMs in FY 2019, whereas in FY 2020, the number fell to 56,379. Among these, most ATMs are in semi-urban areas.

Key growth drivers of the market

• To boost India’s economic growth, the Ministry of Finance and the Reserve Bank of India took measures jointly to extend the banking network, especially among the low-income population and in rural areas.
• The use of cloud-based operations has enhanced the agility of banks. The introduction of core banking solutions has led to a rise in transaction volumes since customers can operate their accounts remotely. Almost all public and private sector banks leverage data analytics and automation technology to strengthen their business operations and improve customer satisfaction.

Key deterrents to the growth of the market

With the popularity of internet-based banking, fraudulent activities have surged. Incidents of credit card scams, spamming, spoofing, e-money laundering, ATM fraud, phishing, identity theft, and transactions through unauthorized cheques increased in FY 2019, as compared to FY 2018. This has led to customers’ dissatisfaction and loss of trust in web-based banking.

Digital Banking Platform Market – Analysis of Market Size, Share & Trends for 2018 – 2020 and Forecasts to 2030

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In 2020, India was the third-largest consumer of oil, accounting for ~5.3% of the global oil consumption. Oil and gas jointly accounted for ~35% of the country’s overall energy mix in 2020. Consumption of oil and gas industry in India stood at 4,669 thousand barrels per day in 2020 and is projected to reach 6,132.28 thousand barrels by 2026, expanding at a CAGR of 4.4% during the 2021 – 2026 period.

Production insights

As of 2020, there were 4.5 Bn barrels of proven oil reserves and 1.33 Trn cubic meters of proven natural gas reserves in India. In 2020, India accounted for ~0.9% of the global oil production and ~0.6% of the global natural gas production. The production of oil and natural gas has fallen since 2018. The low productivity of aging oilfields and falling prices have led to a decline in production volumes.

Production slumped further in 2020 in the wake of the COVID-19 pandemic. Unavailability of workers, restrictions on mobility, low offtake from key consumers, and closure of offshore gas fields had a massive impact on production in 2020. However, the government’s impetus to increase the share of natural gas in the energy mix and to reduce import bills is expected to foster the production of natural gas during the forecast period.

Consumption insights

A rapidly growing population, industrialization, and urbanization contributed to the steady increase in oil and natural gas consumption. India is heavily reliant on imports to meet its demand for oil and gas – ~80% of oil demand and ~50% of natural gas demand are met through imports.

In 2020, mainly in the second quarter of CY 2020, stringent lockdowns because of the pandemic impacted the demand for oil and gas in the transportation and industrial sectors.

Market influencers

The growth of the Indian oil and gas industry has been driven by an increasing population, rise in per capita income, and rapid urbanization. A significant development in infrastructure, coupled with the ease of doing business, has motivated the entry of key foreign players such as BP plc, Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Total SA.

The positive outlook of the Indian transportation sector played an instrumental role in supporting the growth of the oil and gas industry. Light-duty and heavy-duty vehicles are the leading consumers of oil and gas, followed by aircraft, marine, and rail.

Exploration of novel and unconventional sources using frontier oil-producing technologies will boost production. However, factors such as reductions in domestic production, heavy reliance on imports, dominance of state-owned companies, and limited infrastructure investments are impeding market growth.

Impact of COVID-19

The oil and gas industry has been experiencing massive difficulties because of the international price war on one side, and the pandemic on the other. These will have a substantial impact on the domestic market, both in the short and long term.

The nationwide and state-wise lockdowns led to a sharp dip in mobility, transportation, and industrial activities, resulting in a slump in oil consumption. Low demand for oil, gas, and refined products will result in a supply-demand imbalance and a consequent price drop in the near future.

In the long run, the market is predicted to gain momentum. However, excess supply is likely to be predominant in the global market. Laying off of workers because of the pandemic is likely to result in labor shortages during the revival phase.

The focus of the industry is expected to shift towards low-cost and short-cycle sources over the forecast period. Expansion of innovative segments like shale oil and shale gas, adoption of new business models, and market consolidation are projected to be the long-term trends in the market.

Pipeline Safety Market By Component [Solutions (Pipeline Monitoring System, Secure Communication, Perimeter Intrusion Detection, SCADA for Pipelines, and ICS Security) and Services]; By Technology (SCADA Systems, Intruder Detection System, Industrial Control Systems Security, Video Surveillance & GIS Mapping​ and Pipeline Monitoring); By Vertical (Natural Gas, Crude Oil, Refined Products and Other); and Region – Global Analysis by Market Size, Share & Trends for 2014 – 2020 and Forecasts to 2030

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The traditional non-alcoholic beverages market has been facing a lot of challenges due to a decline in the demand for traditional carbonated soft drinks due to loaded sugar and artificial sweeteners, lack of skilled workforce, and huge capital costs.

Consumers’ changing preferences, coupled with innovations in product packaging and sizing to improve affordability, have led to a rise in the consumption of non-alcoholic beverages in the country.

In terms of revenue, the non-alcoholic beverages market in India was valued at INR 336.50 Bn in FY 2020. It is expected to reach INR 1,131.52 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~18.69% during the forecast period.

Segment insights

The non-alcoholic beverages market is categorized into two segments – carbonated and non-carbonated beverages.

The carbonated beverages market segment was valued at INR 134.60 Bn in FY 2020 and is expected to reach a value of INR 349.64 Bn by FY 2027, expanding at a CAGR of ~15.12% during the FY 2022 – FY 2027 period. The non-carbonated beverages segment in India was valued at INR 153.33 Bn in FY 2020. It is expected to reach INR 781.88 Bn by FY 2027, expanding at a CAGR of ~20.52% during the FY 2022 – FY 2027 period.

The carbonated beverages segment is anticipated to lose its market share during the forecast period because of the massive expansion of the non-carbonated beverages segment. Over the past few years, non-cola aerated drinks have gained popularity, especially fruit drinks. Leading manufacturers are reshaping their corporate strategies to suit consumers’ concerns regarding health.

The non-carbonated beverages segment has grown exponentially due to improved health consciousness among consumers and increased affordability.

Impact of COVID-19

With the onset of the second wave of the pandemic in April 2021, the non-alcoholic beverages industry faced immediate challenges due to the closing of all outlets that hampered their supply chain.

Key industry players introduced new drinks and increased door-to-door deliveries to drive sales. Due to the disruptions in global supply chains, the government introduced significant policies by imposing strict FSSAI guidelines for quality assurance and management of food products. Indian manufacturers of carbonated beverages witnessed their worst quarter between April and June 2021.

However, during the second wave of COVID-19, there was a steep rise in the sale of non-carbonated beverages, especially in segments such as packaged drinking water, primarily because of improved health awareness.

The disrupted supply chains of prominent brands during the nationwide lockdown paved the way for regional players to increase their shares in local markets though having small supply channels, and direct-to-trade incentives marketing.

Competitive insights

With the increasing demand for healthy functional drinks after the onset of COVID-19, major market players such as Dabur Limited have introduced their offering of immunity-boosting vegan-friendly drinks such as Dabur Giloy Neem Juice, Dabur Amla Juice, and Dabur’s ImuDab Syrup.

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Debt Demand of the MSME Sector in India:
The overall debt demand by MSMEs amounted to ~ INR 105.50 Trn in 2020. In 2020, the estimated addressable debt demand was INR 44.66 Trn. Approximately 47% of the debt demand is non-addressable because of the presence of sick enterprises, MSMEs with limited operational capacities, and enterprises that voluntarily exclude themselves from formal financial services, as well as other factors.

Credit Supply to the MSME Sector in India:
In 2020, the overall credit supply, including both the formal and informal sectors, amounted to INR 110.40 Trn. The formal and the informal sectors contribute ~22.72% and ~77.28% to the overall credit supply, respectively.

Impact of COVID-19 on MSME Financing Market

Small businesses are the most vulnerable to unexpected crises like COVID-19 because of their size, scale of business operations, and limited financial management resources. However, the government has announced several policy measures to minimize losses.
The announcement of a targeted long-term repo operation (TLTRO) of INR 500 Bn, a grant of INR 3 Tn collateral-free automatic loans, INR 200 Bn subordinated debt to stressed MSMEs, and a complete ban on global tenders for procurement of goods and services for up to INR 2 Bn are a few of the crucial policy mandates.

Oil and Gas Industry in India 2021

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Home Healthcare Market insights

In 2019, the market accounted for approximately 4% of India’s overall healthcare industry earnings. It was valued at INR 460.00 Bn in 2020. It is expected to reach INR 3,228.19 Bn by 2026, expanding at a compound annual growth rate (CAGR) of ~38.59% during the 2021 – 2026 period.

An increase in the size of the aging population and the increased prevalence of chronic ailments such as hypertension, diabetes, arthritis, cancer, and cardiovascular diseases are aiding the growth of the market. The government is trying to motivate patients to reduce hospital visits and avail home-care services through its healthcare initiative, Ayushman Bharat Scheme (Union Budget 2019).

This will propel market growth. Competition is intense because of the presence of existing players and the entry of new digital healthcare firms (such as Netmeds, 1MG, and Myra), who are expanding their portfolios for home healthcare services.

Segment Insights

The market is broadly segmented into home healthcare services, devices, and solutions. In 2020, home healthcare services was the largest segment, accounting for ~51.29% of the total market revenue. During the 2021 – 2026 period, home healthcare solutions is expected to become the fastest-growing segment of the market as a result of social distancing rules and self-isolation norms that are in place to curb the spread of COVID-19.

By 2026, the home healthcare devices and home healthcare solution segments are expected to hold ~19.15% and ~41.60% shares, respectively, in terms of market revenue.

COVID-19 impact analysis

The outbreak of COVID-19 in India and subsequent lockdowns to curb its spread severely impacted the home healthcare market in India. As the crisis continues, telehealth solutions, health screening and monitoring devices, and home nursing services segments are likely to witness significant growth.

Social distancing norms, limited outdoor medical capacities, and initiatives undertaken by the Indian government to encourage at-home treatments and telehealth solutions are likely to accelerate market growth. Other home healthcare segments that may be affected favourably during this period include health diagnostic devices, at-home therapeutic services, and other medical supplies.

5G in Healthcare Market: Growing adoption of telemedicine and robotic surgery is augmenting the market growth at a healthy CAGR of ~ 74.5% during the forecast period of 2021 to 2028. 

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In the past few years, the payment acceptance infrastructure has improved, propelling market expansion. The introduction of digital payment portals by banks such as Axis Bank Ltd., HDFC Bank Ltd., and ICICI Bank Ltd has aided the development of e-payment solutions. Integration of payment services by telecommunication firms such as Airtel, Google, and MobiKwik for online transactions also helped in the process.

E-payment Solutions Market insights

In FY 2021, the market witnessed 43.71 billion transactions. It is expected to reach 649.70 billion by FY 2027, expanding at a compound annual growth rate (CAGR) of ~59.57% during the FY 2022 – FY 2027 period. The value of e-payment transactions is expected to expand at a CAGR of ~24.64% during the forecast period.

Technological advancements such as internet banking and contactless payments, along with improved internet connectivity, propel e-payment methods. Integration of payment services with popular non-banking mobile applications such as WhatsApp, Apple Pay, Amazon Pay, and Ola Money have made these payment options popular among millennials.

Segment Insights

The market can be segmented on the basis of types of payment methods – Real Time Gross Settlement (RTGS), Retail Electronic Clearing, and Cards. RTGS acquired the highest market share in terms of value throughout FY 2021. In terms of volume, retail electronic clearing held the highest market share, followed by card payments and RTGS.

The total volume of retail electronic clearing expanded at a CAGR of ~49.29% during the FY 2019 – FY 2021 period. Retail electronic clearing comprises different modes of transactions such as  (NEFT), Immediate Payment Service (IMPS), and National Automated Clearing House (NACH). Cards include payment via debit and credit cards.

COVID-19 Impact Analysis

The value of e-payment transactions decreased in 2020 due to reduced business activities and lowered the annual income of people, while the volume increased significantly. In the wake of the pandemic, the National Payments Corporation of India (NPCI) encouraged customers and providers of emergency services to adopt digital payment systems to ensure safety of contactless transactions.

It launched e-RUPI, a one-time contactless, cashless voucher-based mode of payment, which helps users redeem a coupon without a card, digital payments app, or access to internet banking. Digital transactions using UPI increased by 1.8 times of what it was before COVID-19 and is exhibiting steady growth even during Q2 FY 2022.

However, the market witnessed slow growth in terms of value because several major sectors such as cross-border payments, travel, and hospitality/tourism, which operate through e-payments, were affected.

Mobile Wallet Market: Market Segments: By Product (Proximity and Remote); By Mode of Payment (SMS, NFC, WAP, Others); By Application (Retail, Vending Machine, Public Transportation and Restaurants); and Region – Analysis of Market Size, Share & Trends for 2019 – 2020 and Forecasts to 2030

The post E-payment Solutions Market in India 2021 first appeared on CRI Report.

Furthermore, the construction of various infrastructure projects such as airports and roads, undertaken by the government in recent times, propels the growth of the market. Some of the major players include UltraTech Cement Limited, Ambuja Cements Limited, ACC Limited, Shree Cement Limited.

Cement Industry insights

India is the second-largest producer of cement in the world, accounting for more than 7% of the global installed capacity. In FY 2021, domestic production stood at 294.40 million tons, declining by 12% year-on-year on account of the economic slowdown. Cement consumption is projected to reach about 419.92 million tons in FY 2027.

The spurt in demand from sectors such as housing, commercial construction, and industrial construction will lead to an increase in consumption.

Segment insights

The housing sector is the key contributor to the cement industry growth. It is estimated that about 60% of cement is consumed by the sector. Demand is further getting fuelled by the non-trade segment, which is gaining momentum with the resumption of construction work of public infrastructure projects such as roadways and metros, after the lockdown.

In terms of production, south India has the maximum production capacity among the five zones (north, south, central, west, and east). It has a share of about 33% of the overall cement production.

COVID-19 impact analysis

In the wake of the pandemic, production was affected due to intermittent lockdowns and restrictions on mobility. Construction activities were interrupted in Q4 FY 2021 and Q1 FY 2022 because of the second wave and this resulted in the decline of consumption. However, because orders were put on hold, consumption volumes increased in the second quarter of FY 2022.

Significant market growth is expected over the forecast period because of higher infrastructure and developmental activities.

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The post Cement Industry in India 2021 first appeared on CRI Report.

The auto ancillary market deals with the production and sale of intermediate equipment and automotive parts that are used in automobile manufacturing. It is a crucial part of the automotive industry in India.

It is segmented into organized and unorganized sectors. The organized sector serves original equipment manufacturers (OEMs) and deals in high-value instruments. The unorganized sector provides the aftermarket with low-value tools and parts. The business is moving toward the production of electric vehicle parts and components. It is expected that by 2025, the auto ancillary market in India will become the third-largest in the world.

Market insights

The performance of the automotive industry impacts the auto ancillary market. The auto sector has been facing a slump since FY 2019, mostly due to weak consumer sentiments and tightening of liquidity in non-banking financial companies and other lending institutions. Furthermore, it was affected by strict lockdown measures in the wake of the COVID-19 pandemic.

However, with the enactment of new regulatory measures and adoption of advanced technologies, the sector is expected to gain momentum from 2021 onwards.

The auto ancillary market is anticipated to reach INR 7,756.98 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~15.35% during the FY 2022 – FY 2027 period. In terms of revenue, the OEM suppliers segment holds the largest market share (~55.98%), followed by exports and aftermarket. However, in terms of the number of players, the market is dominated by the aftermarket segment.

Impact of COVID-19

Auto ancillary producers faced the challenge of subdued demand and manufacturing restrictions induced by COVID-19-related safety measures. The Society of Indian Automobile Manufacturers (SIAM) reported a 14.07% reduction in automobile production in FY 2021. Following the decline in sales, automobile manufacturers curtailed orders to auto ancillary suppliers and producers.

Export of auto ancillary products also dropped in FY 2021 due to international production cuts. However, the market started expanding at a robust pace after the third quarter of FY 2021 with the gradual growth of the automobile industry.

Government initiatives

The government has formulated various policies to boost the growth of the market. Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Project (NATRIP), and National Electric Mobility Mission Plan 2020 (NEMMP), are a few significant programs launched by the government.

Other initiatives include providing R&D incentives for industry- and private-sponsored research, granting export subsidy under the Merchandise Exports from India Scheme (MEIS), and offering incentives to players operating in Special Economic Zones.

Key growth drivers of the market:
• The enforcement of BS-VI standards of safety and emission is anticipated to help the export market expand during the forecast period for the benefit of auto component players in India
• Foreign players prefer India because it is a cost-effective location for manufacturing, which bodes well for the auto ancillary market
Key deterrents to the growth of the market:
• Even though annual production of the overall automotive industry has improved, consumption in recent quarters (2019 onwards) experienced a decline mainly due to a liquidity crisis for Non-Banking Financial Companies (NBFCs)
• Moreover, the lack of research and development infrastructure and quality standards is a threat to the market

Competition analysis

The auto ancillary market is highly fragmented, the organized sector (OEMs) being dominated by leading players such as Bharat Forge Limited, Mahindra CIE Automotive Limited, Bosch Limited, and Sundram Fasteners Limited.

Industrial Fasteners Market Global and India 2018-2023

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Technical advancements such as cost-effective equipment and decrease in prices of components have fueled the growth of the air conditioner (AC) market. High energy consumption and fall in electricity prices are the major challenges. The market was valued at INR 293.37 Bn in FY 2021. It is expected to reach INR 991.57 Bn in FY 2027, expanding at a CAGR of 24.30% during the FY 2022 – FY 2027 period.

Segment insights

The market is categorized into four segments – split-type (wall mounted), window-type, cassette (ceiling-mounted), and tower (floor-mounted) air conditioners. The split-type AC segment was valued at INR 124.24 Bn in FY 2021. It is anticipated to reach INR 473.47 Bn in FY 2027, expanding at a CAGR of ~26.79% during the FY 2022 – FY 2027 period.

Owing to increased income and rapid urbanization, the demand for split ACs has picked up. In FY 2021, the window-type AC segment was valued at INR 112.51 Bn. It is expected to reach INR 142.79 Bn in FY 2027, expanding at a CAGR of ~4.43% during the forecast period. Following the second wave, the preference for window AC increased among the middle class because of its affordability.

In FY 2021, the cassette (ceiling-mounted) AC segment was valued at INR 18.34 Bn. It is estimated to reach INR 154.19 Bn in FY 2027, expanding at a CAGR of ~42.69% during the forecast period. Although these ACs are energy- and space-efficient, they are not ideal for multi-storey households. The tower AC segment held a revenue of INR 38.29 Bn in FY 2021.

It is expected to reach INR 221.12 Bn FY 2027, expanding at a CAGR of 35.38% during the forecast period. The demand for tower ACs from the household sector is limited. They sell in the commercial sector because of their portability and also large area is required for its installation.

Impact of COVID-19

Due to the global outbreak of COVID-19 in 2020 followed by nationwide lockdown, the air conditioner market was highly affected Travel restrictions, workforce shortages, disruptions in world trade, and bottleneck in logistics impacted the supply chains of companies.

Top players such as Voltas, Daikin, Blue Star, Panasonic, and Haier registered a drop of almost 75% in sales volumes between April and May, 2021 collectively.

Almost 70% of sales take place between March and June. This year, sales plummeted because nearly all stores were closed due to lockdowns imposed across states in view of the second wave.

The market gained momentum in October during the festive season because of market players’ collaborations with major online and offline retail partners such as Amazon and Reliance Digital. They helped to attract customers through attractive offers.

Competitive insights

Owing to evolving customer preferences, major players such as Voltas Limited, Havells India Limited, and Blue Star Limited made huge strides in technological advancements. Innovations such as ubiquitous sensor networks and copper condensers with anti-corrosive hydrophilic blue fins will improve the efficiency of ACs.

Spray Drying Equipment Market: By Product Type (Rotary Atomizer, Nozzle Atomizer, Fluidized and Centrifugal); By Stage (Single-Stage, Two-Stage and Multi-Stage); By Flow Type (Co-Current, Counter-Current, and Mixed Flow); By Application (Food & Dairy, Pharmaceuticals & Nutraceuticals, Chemical and Others); and Region – Analysis of Market Size, Share & Trends for 2014 – 2019 and Forecasts to 2030

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