The India smartphone industry has cemented its position as one of the world's most critical and dynamic technology markets, undergoing a profound transformation driven by consumer aspiration and technological advancement. Far from merely being a volume-driven segment, the market is experiencing a significant value premiumisation trend, where consumers are increasingly upgrading to feature-rich and higher-priced devices. This shift is not confined to metropolitan centers but is being powered by deeper internet penetration, robust government initiatives, and an accelerating replacement cycle across smaller cities and rural regions. Understanding the primary factors driving growth in this diverse and competitive landscape is essential for corporate strategy teams and business development managers seeking to capitalize on one of the last major untapped markets globally.
The sector's resilience is demonstrated by a steady annual growth in shipments, which reached 151 million units in 2024. This growth, coupled with a surge in the Average Selling Price (ASP), has driven the market’s wholesale revenue to an all-time high. As the country transitions towards a fully digitized economy, the demand for sophisticated mobile devices continues to propel the industry towards a projected $50 billion retail value.
The transition from 4G to 5G capability is arguably the single most powerful technological factor fueling demand in the India smartphone market. This rapid technological migration is shifting the market's center of gravity from mere connectivity to advanced mobile computing.
The share of 5G smartphones in total shipments has seen an unprecedented surge. In 2024, the shipment penetration of 5G devices rose dramatically, approaching four-fifths of the total smartphones shipped. This trajectory is set to accelerate further, with industry reports indicating that nearly 90% of all smartphone replacements in 2025 are expected to be 5G-capable devices.
Affordable 5G Launches Increasing Sales:
A crucial development is the collapsing price point of 5G technology, making it accessible to mass-market consumers. The Average Selling Price (ASP) for 5G-enabled devices declined significantly in 2024, making the technology more attainable for the budget-conscious consumer.
Furthermore, the dedicated and aggressive rollout of 5G networks by major telecom operators, such as Jio and Airtel, has successfully expanded coverage across smaller towns and rural areas. The government's initiatives to promote domestic semiconductor manufacturing are also expected to further reduce component costs, solidifying the market's long-term reliance on affordable 5G devices.
The scale and growth trajectory of the Indian market position it as an undeniable global force in consumer electronics. This sheer magnitude and the underlying demographic potential define the current and future market opportunity. The India smartphone market size reached 153.3 Million Units in 2024. Looking forward, IMARC Group expects the market to reach 277.1 Million Units by 2033, exhibiting a growth rate (CAGR) of 6.6% during 2025-2033.
India Among the World’s Largest Smartphone Shipment Markets:
India has consistently outperformed global market growth figures and has solidified its position on the world stage.
The increasing Average Selling Price (ASP) is the clearest indicator of the underlying shift in market dynamics, reflecting the strong trend of value premiumisation. The ASP of smartphones has reached record highs, driven by the strong consumer shift towards higher-priced devices. This sustained value growth is positioning the market to exceed a $50 billion retail value as the value-driven segments continue to expand.
The market’s robust growth is also structurally supported by India's emergence as a global manufacturing and export hub for mobile phones. Government initiatives, such as the Production Linked Incentive (PLI) scheme, have been highly effective in boosting local manufacturing.

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While the high-end premium segment receives much attention, the true engine of volume growth in India remains the budget and mid-range segments, which cater to the vast majority of consumers who are upgrading from feature phones or older 4G devices. The market can be characterized by a "sandwich" effect: an enormous volume base sustaining growth from below, and an increasingly profitable premium segment driving value from above.
The INR 8,000–INR 20,000 Category Driving Volume Sales:
The mass budget segment, which roughly corresponds to the $100–$200 (approx. INR 8,000–INR 16,000) price bracket, accounts for the largest share of total volume shipments. This segment is fiercely competitive, dominated largely by Chinese OEMs like vivo, OPPO, and realme, which collectively hold a significant majority market share within this price range. These brands offer an optimal blend of performance and value, frequently including features like fast-charging and high refresh-rate displays that appeal directly to performance-conscious young users.
However, the most dynamic growth is occurring just above this base, in the entry-premium segment (approximately $200–$400). This segment witnessed the highest surge in growth in 2024. This is the sweet spot for consumers who are undertaking their second or third smartphone purchase, seeking improved specifications, better camera quality, and 5G connectivity without committing to flagship prices.
The longevity and performance improvements in mid-range devices mean that replacement cycles are extending, forcing manufacturers to innovate and offer compelling reasons for consumers to upgrade. This has led to the rapid integration of advanced features, such as AI-enabled capabilities, even into the mid-range offerings from brands like Samsung.
The retail landscape is a dual-channel powerhouse, with modern e-commerce strategies and traditional offline presence driving market reach. The aggressive use of online platforms, combined with strategically timed seasonal offers, is a critical growth factor, especially for mass adoption.
Amazon, Flipkart & Brand Websites Driving Mass Adoption:
The Indian smartphone market is characterized by a unique balance between online and offline channels. In 2024, online and offline channels experienced similar growth rates, maintaining a near-equal share of the market, with online channels accounting for just under half of all shipments.
Key Role of E-commerce:
Brands are increasingly adopting omnichannel strategies, expanding their physical presence through new stores and better margins for offline retailers, while simultaneously running online-exclusive models and discounts to cater to both customer bases. The synergy between online deals and financing options is particularly effective in driving up the ASP by enabling customers to upgrade to better, more expensive models.
The Indian smartphone market is a hyper-competitive arena where global powerhouses and aggressive Chinese brands clash for market dominance in both volume and value. While the top five companies account for the majority of the market, a "long tail" of emerging brands is also gaining ground.
The competitive dynamics are distinctly separated by price segment: volume leadership is primarily captured by Chinese Original Equipment Manufacturers (OEMs), while value leadership is controlled by premium players.
Volume vs. Value Leaders:
The intensified competition is pushing all brands toward innovation, notably the introduction of Generative AI features, which are expected to move beyond flagship devices and become key differentiators across various price points in the coming years.
The growth of the India smartphone industry is a multi-faceted narrative, driven equally by technological shifts, economic factors, and aggressive competitive strategies. The sector is moving from a volume-focused market to a value-led growth engine, positioning it as one of the most profitable opportunities in global technology. The market’s future is intrinsically linked to the continued rollout of 5G, the democratisation of advanced features into affordable segments, and the expansion of consumer financing options.
For business stakeholders, the following strategic insights are key to navigating the future of the India smartphone industry:
By focusing on these strategic pillars, companies can effectively capture the immense potential of India’s burgeoning and increasingly sophisticated smartphone market.
At IMARC Group, our mission is to empower technology leaders, investors, and market entrants with the clarity and intelligence required to navigate India's complex and rapidly evolving smartphone landscape. Partner with us to transform market insights into strategic advantages, because in India's digital revolution, every decision matters.
For more details, please click on this link: https://www.imarcgroup.com/india-smartphone-market
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