Ahead of SEMICON India 2026, Omdia said India’s technology market is entering a major investment cycle in 2026 as electric vehicles, semiconductor demand, factory automation, smart infrastructure, 5G and Internet of Things deployments expand simultaneously.
Omdia report on SEMICON India 2026 says government incentives, infrastructure spending and industrial modernization are moving India from fragmented technology pilots toward large-scale deployments. Strategic initiatives including Production Linked Incentive (PLI) schemes, PM Gati Shakti and India Semiconductor Mission 2.0 are helping catalyze investments exceeding ₹10 lakh crore ($105.5 billion) across multiple sectors.
The transformation is particularly significant for semiconductor and electronics suppliers because technology demand is increasingly linked to actual infrastructure and manufacturing projects rather than long-term policy ambitions.
India EV Market Reaches 2.5 Million Units
Electric mobility is emerging as one of the strongest semiconductor demand drivers in India.
India’s EV market reached 2.5 million units in FY26, with two-wheelers and three-wheelers continuing to account for the majority of sales. However, passenger EVs are expanding faster and contain substantially more semiconductor content per vehicle.
The changing vehicle mix is increasing demand for power modules, microcontrollers, gate drivers, sensor ICs, traction inverters, onboard chargers, DC-DC converters and battery-management systems.
Omdia expects global semiconductor revenue associated with advanced driver assistance systems, or ADAS, to grow at approximately 14 percent CAGR through 2030, while xEV semiconductor revenue is projected to expand at around 10 percent CAGR. Traditional powertrain semiconductor revenue, by comparison, is declining.
Bharat NCAP is also accelerating the adoption of ADAS technologies, while government EV programs and localization incentives are encouraging automakers and suppliers to manufacture more components domestically.
The challenge is that most automotive-grade semiconductors used in India, particularly advanced-node chips, remain imported. Semiconductor demand is therefore growing faster than India’s domestic manufacturing capability, creating an opportunity for chipmakers, packaging companies, automotive suppliers and electronics manufacturing services providers.
500 GW Renewable Target Creates Power Semiconductor Opportunity
India’s energy transition represents another large semiconductor growth opportunity.
The country’s push toward 500 GW of renewable power capacity will require significant volumes of solar and wind inverters, battery energy storage converters, HVDC equipment and STATCOM systems.
These systems depend on power semiconductor technologies including IGBTs and silicon carbide (SiC), alongside control MCUs and measurement ICs.
The convergence of renewable power, battery storage and electric mobility is also creating new applications. Solar-powered EV charging infrastructure, for example, combines photovoltaic inverters, storage converters, grid interfaces and EV charging electronics within a single system.
India’s energy transition could consequently become an important long-term market for power semiconductor suppliers as renewable generation and electrified transportation expand together.
India Automation Market to Grow 9.3% CAGR
Manufacturing represents another important technology growth engine.
Omdia forecasts India’s industrial automation market will expand at a CAGR of 9.3 percent between 2026 and 2030, more than double the 4.4 percent CAGR expected for the global automation market.
India’s machinery market is meanwhile forecast to grow at 7.4 percent CAGR from 2026 to 2030.
This expansion reflects growing investment in robotics, machine vision, motion control, industrial IoT, programmable logic controllers, industrial PCs and Edge AI.
The PLI schemes have attracted more than $25.9 billion in committed investments across 14 sectors, while Atmanirbhar Bharat has ring-fenced nearly $16.7 billion for domestic defense procurement in FY26.
Manufacturing centers including Chennai, Bengaluru and Sanand are increasingly deploying industrial IoT, robotics, Edge AI and real-time analytics to improve productivity and energy efficiency.
Large electronics manufacturing clusters in Noida, Sriperumbudur and Pune are also installing high-throughput production lines using pick-and-place robots, automated optical inspection, test equipment, sensors and factory networking technologies.
₹4 Lakh Crore Urban Investment Opens Smart Infrastructure Market
India’s smart-city opportunity is also moving beyond the original Smart Cities Mission.
By March 2026, 7,790 of 8,064 Smart Cities Mission projects had been completed, representing approximately ₹1.56 lakh crore ($16.5 billion) of investment.
All 100 smart cities have operational Integrated Command and Control Centers. More than 83,000 CCTV cameras have been deployed, while over 17,000 km of water networks are monitored through SCADA systems.
The next phase could be significantly larger.
The government approved a ₹1 lakh crore ($10.6 billion) Urban Challenge Fund in February 2026. Government funding can cover up to 25 percent of project costs, while projects must raise at least 50 percent from market sources.
The model is expected to catalyze approximately ₹4 lakh crore ($42.2 billion) of urban investment over five years.
The program focuses on redevelopment, urban mobility, last-mile connectivity, water, sanitation and transportation, with Tier-II and Tier-III cities receiving greater attention. This creates opportunities for IoT platforms, digital twins, intelligent transportation, smart utilities, sensors and AI-based city management systems.
₹2.97 Lakh Crore Water Program Expands IoT Opportunity
Water infrastructure is another emerging technology market.
AMRUT 2.0 has a total outlay of ₹2.97 lakh crore ($31.4 billion) and targets approximately 4,700 urban local bodies.
More than 3,100 water-supply projects worth over ₹90,000 crore ($9.5 billion) have already been approved in reported program data.
The projects create demand for smart water meters, pressure sensors, leak-detection systems, pump optimization, remote asset monitoring and predictive maintenance technologies.
Smart energy infrastructure represents an even larger IoT opportunity. India’s Revamped Distribution Sector Scheme included a mandate for 250 million prepaid consumer smart meters, alongside smart metering of distribution transformers and feeders.
The enormous deployment target could make electricity meters one of India’s largest categories of IoT edge devices.
5G Reaches 99.9% of Indian Districts
Telecom infrastructure provides the connectivity layer supporting this industrial transformation.
As of June 2026, 5G services were available in 99.9 percent of India’s districts, supported by more than 500,000 5G base stations.
This network footprint creates a platform for industrial automation, video analytics, smart manufacturing, telemedicine, precision agriculture and Edge AI applications.
India is also preparing for 5G RedCap, targeting mid-range IoT applications including industrial cameras, smart grids and wearable diagnostic devices.
Satellite connectivity is becoming part of the IoT ecosystem as well. WiSig announced a partnership with Viasat in June 2026 for an NB-IoT non-terrestrial network solution supporting applications such as messaging and location services.
Omdia also notes plans associated with Reliance Jio for a potential LEO satellite constellation of around 1,600–1,650 satellites, potentially extending connectivity to areas beyond terrestrial mobile coverage.
India Produces More Than 330 Million Mobile Phones
India already has enormous downstream demand for display technologies.
The country manufactures more than 330 million mobile phones, 20 million LCD televisions and 20 million PCs annually.
However, India does not yet have an operational display fabrication plant. Its strength is concentrated primarily in backend display-module manufacturing for smartphones, TVs, automotive displays and other electronics.
Omdia estimates the global display industry at approximately $140 billion, making domestic front-end display manufacturing a potentially significant opportunity.
Projects involving companies including Adani, Sharp, Dixon and other industry participants demonstrate growing interest in building a local display ecosystem. The latest development highlighted by Omdia involves a proposed Gen 8.6 a-Si LCD factory combining Adani Group investment with SDP technology support.
India Technology Growth Is Shifting From Pilots to Scale
India’s technology opportunity in 2026 is increasingly defined by the scale of real deployments.
The 2.5 million-unit EV market, 500 GW renewable-energy ambition, 9.3 percent automation CAGR, ₹4 lakh crore urban investment potential, ₹2.97 lakh crore AMRUT 2.0 program, 250 million smart-meter mandate, 500,000-plus 5G base stations and production of 330 million-plus mobile phones annually collectively create substantial demand for electronics and semiconductor technologies.
The most important change is the convergence of these markets. EVs require more power semiconductors; renewable energy requires sophisticated power electronics; smart factories require sensors and industrial chips; urban infrastructure requires IoT platforms; and nationwide 5G coverage provides connectivity for millions of connected devices.
For semiconductor, automation, telecom equipment, industrial electronics and IoT suppliers, India is therefore evolving from a high-potential technology market into a nation-scale deployment opportunity. Omdia expects several underlying markets to maintain 7–9 percent growth rates through 2030, supported by government incentives, localization, infrastructure investment and rising domestic technology consumption.