India Makes Presence Known in TV Market: iSuppli

By Spencer D. Chin

TMCnet Web Editor

 

Although many industry observers see China as a key future driver in the global TV market, India is also emerging as both a consumer and manufacturer of TV sets, according to a report by market research firm iSuppli Corp titled “India Seeking a Greater Slice of the Global TV Market.”

 

The firm noted that while 70 percent of India’s citizens earn less than $5,000 a year, the nation has shown remarkable interest in buying televisions, even the more-expensive flat-panel sets, mostly because of increased awareness, rising availability and declining prices, according to iSuppli Corp.

 

“India is emerging as a major force in the global television market in terms of domestic consumption as well as in TV set production,” said Riddhi Patel, principal analyst for television systems at iSuppli. “While there remain disparities in terms of the economic status of television buyers, set sales in India are experiencing strong growth.”

 

Sales of TVs in India are expected to reach 18.7 million units by 2011, expanding at a CAGR of 9 percent from 12.1 million units in 2006. TV sales revenue will reach $4 billion by 2011, rising at a CAGR of 9.6 percent, up from $2.5 billion in 2006, according to iSuppli.

 

Where India lags behind the remainder of the world in TV buying is in flat-panel TV sales, because prices of LCD and plasma sets remain too costly for most Indian consumers, Patel noted in the report.

 

Typically, Indian consumers buying their first television sets look at 21-inch and smaller CRTs as starter sets. But CRTs continue to drive the replacement market as well, with consumers gravitating to 29-inch flat-face CRT TVs instead of LCD-TVs because of their lower prices.

 

The report also noted that TV set manufacturing continues to rise in India, with both domestic and overseas firms increasing their production base due to low-cost skilled labor, an untapped domestic market, special economic zones that provide tax-free environments, and other tax and financial support breaks

 

TV plants are cropping up in less-developed regions of India because of tax breaks given by the government in order to improve the living conditions of citizens as well as to promote investments in television production in the country. The report also noted that India has an established supply base of makers of glass and color picture tubes, making it a good fit for companies striving to take advantage of the emerging TV market.

 

For more on the study, Indian television market, please see the website.