India will continue to witness significant demand for the Internet of Things (IoT) enabled consumer devices and gadgets next year. As per techARC's report, India is projected to sell connected consumer devices worth Rs 3.25 lakh crores in 2020. Researchers predict that smartphone devices will continue to lead the sales of connected devices next year, both in value as well as volume.
"Users in India are moving beyond Smartphone connectivity and moving to other connected solutions which apart from making them ‘smart’ substantially increase the utility of such devices," said Faisal Kawoosa, Founder and Chief Analyst techARC.
"Fundamentally, this is being driven by two trends of creating a connected cluster around Smartphones, being the hub and adding connectivity in consumer electronics led by Smart TVs and Smart Speakers," Kawoosa added.
The report predicts smartphones will continue to lead the sales of connected devices both in value and volume. As far as personal connectivity devices are concerned, smartphones have higher ASP (Average Selling Price). Researchers predict that there is still headroom for growth since OEMs will explore adjacent products with higher growth prospects in 2020.
The overall growth outlook for connected consumer devices for 2020 is of normal growth, as per techARC. The report defines normal growth as a range between 10-25% of annual sales growth. Smart Wearables led by wireless buds is said to witness ultra-growth while many brands are likely to foray in the segment following Apple. Recently, Realme launched its wireless buds.
Meanwhile, Smart Speakers category will see growth in terms of sales. Enablers like Amazon’s Alexa is expected to play a significant role in the expansion of the voice computing market opportunities.
However, tablets and smart feature phones will continue to decline in sales outlook for 2020, researchers predict. These two device categories have not been able to excite the market beyond a point and market opportunities seem limited for these two categories.
According to the report, the growth for Connected Consumers’ Devices in 2020 will be driven by Cellular and Wi-Fi connectivity to Consumer Electronics for mass markets making several ‘luxury’ products available to masses during the year.