The mobile phone accessories market in India comprises a wide range of products that enhance the functionality of mobile phones, including screen protectors, battery packs, headsets, power banks, cables, selfie sticks, Bluetooth headsets, and portable speakers. Mobile accessories help protect mobile phones from scratches and damage and allow users to continue using their phones for an extended period of time. The growing popularity of stylish, lightweight, and extra-functional accessories is further propelling the demand among young consumers. With increasing data consumption and use of audio/video through mobile phones, the need for headphones, battery packs, and chargers has increased substantially. The Global Mobile Phone Accessories Market in India is estimated to be valued at US$ 2829.28 Bn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the India Mobile Phone Accessories are The Sherwin-Williams Company, PPG Industries, BASF SE, Akzo Nobel N.V., RPM International Inc.. These players are focusing on new product development and launches to better serve the needs of consumers. For instance, in 2022, The Sherwin-Williams Company launched a new range of screen protectors and grips for smartphones.
The demand for mobile phone accessories is growing owing to increasing smartphone penetration and use of digital services in India. According to a report, the number of smartphone users in India is expected to reach 859 million by 2022. This growing base of smartphone users and increasing time spent on mobile phones is significantly driving the sales of mobile accessories.
Technological advancements are also fueling the market growth. Key players are focusing on developing accessories compatible with new technologies such as 5G, Wi-Fi 6, and wireless charging. In 2021, PPG Industries launched a new range of wireless charging stands and battery packs for smartphones supporting latest wireless technologies.
Market Trends
Growing preference for Bluetooth accessories: With the rising popularity of wireless technology, the demand for Bluetooth accessories such as earphones, headphones, and speakers is increasing among mobile phone users in India. Many leading players have expanded their portfolio of Bluetooth accessories to cater to this growing demand.
Personalization of accessories: Users nowadays prefer mobile accessories that reflect their personality and style. Hence, companies are offering accessories in diverse colors, patterns, and finishes. Customizable and personalized accessories allow users to stand out and uniquely express themselves.
Market Opportunities
Smart accessories: There is scope for innovating accessories that are integrated with smart features to offer enhanced functionality. For example, smart battery packs with remaining power indicators, smart chargers with virus protection, etc.
Branded and inexpensive accessories: A considerable opportunity lies in developing affordable yet stylish accessories from leading brands. This will help companies tap the value-seeking segment in the country.
Impact of COVID-19 on India Mobile Phone Accessories Market
The COVID-19 pandemic has significantly impacted the growth of the India mobile phone accessories market. During the lockdown imposed across the country to curb the spread of the virus, the production and supply chain of mobile accessories were disrupted. This led to a decline in sales as accessibility to the products reduced. Additionally, with reduced incomes and job losses, consumer spending on non-essential products like mobile accessories dropped sharply. Offline retail stores which account for a major share of mobile accessories sales in India remained shut for several months during the lockdown.
However, as the lockdowns eased, demand started recovering backed by rising work from home culture. Increased use of smartphones for official communications, virtual meetings and entertainment led to higher usage of mobile accessories like power banks, headphones, chargers etc. Various mobile OEMs and accessory brands also introduced affordable product lines to tap the mass market. Online channels played a crucial role in reviving sales as people continued avoiding visiting stores due to safety concerns. Going forward, growth is expected from rising smartphone and internet penetration in small towns and cities. OEMs expanding their portfolio of value for money accessories will further aid the market.
The India Mobile Phone Accessories Market in terms of value is most concentrated in Southern India. States like Tamil Nadu, Karnataka and Telangana contribute majorly due to high mobile phone consumption and presence of component manufacturing units. Western India especially Maharashtra is also a key market led by strong distribution network of brands in Mumbai and Pune. However, Northern India comprising Uttar Pradesh, Bihar and Rajasthan is emerging as the fastest growing region backed by increasing affordability among lower income segments in smaller towns. Aggressive retail expansion by Chinese brands catering to budget consumers is driving higher sales growth in this region.
The Northern region of India comprising states like Uttar Pradesh, Bihar and Rajasthan is emerging as the fastest growing region for the mobile phone accessories market in the country. This is being driven by increasing affordability of mobile devices and rising internet and smartphone penetration levels across smaller towns and cities in these states. As per industry estimates, smartphone sales in tier-II and -III towns accounted for over 50% of the total sales in Northern India in 2020. This has widened the potential consumer base for mobile accessories as well. At the same time, aggressive retail expansion strategies adopted by Chinese mobile accessory brands targeting value conscious customers is aiding their increased reach in the hinterlands of Northern states. These brands offer a wide assortment of chargers, batteries, earphones and camera lenses at highly competitive price points. This is attracting a lot of first-time mobile and accessory buyers. If this growth momentum sustains, the Northern region is expected to outpace other regions and hold over 35% market share in value terms by 2030.
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