Telecom Equipment in India Trends and Forecast
The future of the telecom equipment market in India looks promising with opportunities in the BFSI, IT and telecommunication, retail, media and entertainment, military and defense, healthcare, and consumer electronic markets. The global telecom equipment market is expected to reach an estimated $963.5 billion by 2031 with a CAGR of 6.5% from 2025 to 2031. The telecom equipment market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising number of mobile users, the increasing proliferation of the Internet of Things, smart infrastructure, and connected devices, along with the growing demand for 5G technology across the globe.
• Lucintel forecasts that, within the infrastructure category, wireless is expected to witness the highest growth over the forecast period.
• Within the end use industry category, consumer electronics will remain the largest segment.
Emerging Trends in the Telecom Equipment Market in India
The telecom equipment market in India is undergoing rapid transformation, driven by the increasing demand for high-speed internet, the rollout of 5G, and the expanding digital infrastructure across the country. As India moves towards becoming a global leader in telecommunications, the market is witnessing significant investments and innovations aimed at enhancing connectivity, improving network efficiency, and meeting the needs of a growing digital economy. Several emerging trends are reshaping the telecom equipment sector, indicating the future direction of technological growth and its impact on the country’s infrastructure and economy.
• 5G Deployment and Infrastructure Expansion: The rollout of 5G technology is one of the most transformative trends in India’s telecom equipment market. With the government’s push for faster and more reliable connectivity, telecom operators are investing heavily in 5G infrastructure. This includes upgrading existing towers, building new base stations, and deploying small cells. The demand for 5G-compatible equipment, such as antennas, base stations, and routers, is rising, positioning India as a hub for next-generation telecommunications services. The 5G rollout will enable advancements in various sectors, including healthcare, manufacturing, and smart cities.
• Increasing Investments in Fiber Optic Networks: Fiber optic networks are at the heart of the telecom industry’s push for higher speeds and better connectivity. With the demand for data growing exponentially, there is a strong emphasis on expanding fiber optic infrastructure across both urban and rural regions of India. Telecom companies are investing in laying down fiber optic cables to ensure seamless internet access, with government initiatives like BharatNet driving rural broadband penetration. This expansion supports the delivery of high-quality, high-speed internet and enhances the performance of telecom networks nationwide.
• Shift Toward Cloud-Native and Virtualized Network Solutions: As telecom operators in India seek to improve network efficiency and reduce operational costs, there is a growing shift toward cloud-native and virtualized network solutions. By leveraging cloud technologies and network function virtualization (NFV), operators can decouple hardware from software and deploy more flexible, scalable networks. This trend is driving demand for software-based network equipment that allows operators to optimize their networks in real-time, improve service delivery, and reduce the capital expenditure required for physical infrastructure.
• Increased Focus on Cybersecurity: With the increasing reliance on digital communication systems, cybersecurity has become a key concern for telecom companies in India. The growth of 5G, IoT devices, and cloud services introduces new vulnerabilities to networks, making robust security measures essential. Telecom equipment providers are now focusing on developing secure hardware and software solutions to safeguard data and prevent cyber threats. This includes advanced encryption methods, secure network infrastructure, and tools to monitor network security, ensuring the safety and privacy of users across digital platforms.
• Local Manufacturing and ‘Atmanirbhar Bharat’ Initiatives: The Indian government’s “Atmanirbhar Bharat” (Self-reliant India) initiative is encouraging local manufacturing of telecom equipment. To reduce dependence on imports, the government is promoting domestic production of critical telecom components such as 5G equipment, antennas, and networking devices. This trend is helping Indian telecom equipment manufacturers scale up production, create jobs, and build capabilities in the high-tech sector. With financial incentives and policy support, India is moving towards becoming a global manufacturing hub for telecom equipment, bolstering both the domestic market and export potential.
The telecom equipment market in India is undergoing a profound transformation, driven by trends such as 5G deployment, investments in fiber optic infrastructure, the shift to cloud-native networks, a stronger focus on cybersecurity, and the push for local manufacturing. These trends are positioning India as a leader in telecom innovation and infrastructure development, creating a more efficient, secure, and resilient digital ecosystem. As the market evolves, India’s telecom equipment industry is set to play a pivotal role in supporting the country’s digital growth and contributing to its global competitiveness.
Recent Developments in the Telecom Equipment Market in India
The telecom equipment market in India is witnessing a wave of developments, driven by the country focus on digital transformation and the increasing demand for high-speed, reliable connectivity. With the government push for 5G adoption, fiber optic expansion, and enhanced network security, telecom infrastructure is evolving rapidly. These developments are shaping India’s telecom ecosystem, influencing both domestic and global markets. The following key developments highlight the trends and investments that are driving the growth of the telecom equipment sector in India.
• 5G Rollout and Network Expansion: The rollout of 5G technology in India marks a critical development in the telecom equipment market. Telecom operators are investing heavily in 5G-compatible equipment, including base stations, antennas, and routers. This deployment is expected to transform industries such as healthcare, manufacturing, and education by enabling faster, more reliable connectivity. The government’s spectrum auction, along with increasing demand for high-speed data, is accelerating the growth of 5G infrastructure, positioning India as a leader in next-generation telecom services.
• Growth in Fiber Optic Network Deployment: To meet the surging demand for high-speed internet and digital services, India is witnessing a significant expansion in fiber optic networks. Telecom companies are investing in fiber-to-the-home (FTTH) and fiber-to-the-tower (FTTT) technologies to ensure seamless broadband access. This infrastructure expansion is crucial for supporting 5G deployment and enhancing rural connectivity. Government initiatives like BharatNet aim to extend fiber connectivity to rural areas, bridging the digital divide and providing a robust foundation for future telecom innovations.
• Adoption of Cloud and Virtualized Networks: Telecom operators in India are shifting toward cloud-native and virtualized network architectures to enhance operational efficiency and reduce costs. By leveraging technologies like network function virtualization (NFV) and software-defined networking (SDN), telecom companies can optimize resources, improve service delivery, and scale networks more easily. This trend is particularly important in supporting the dynamic requirements of 5G and IoT applications. Virtualization also enables telecom providers to offer more flexible, agile services to customers while reducing their reliance on physical hardware.
• Cybersecurity Enhancements in Telecom Networks: As India increasingly digitizes, cybersecurity is becoming a top priority for telecom providers. With the rise of 5G, IoT devices, and cloud-based services, telecom networks are exposed to new vulnerabilities. Telecom companies are focusing on upgrading their security infrastructure to protect against cyber threats. This includes implementing advanced encryption protocols, secure network equipment, and robust monitoring systems to safeguard user data. Enhanced cybersecurity measures ensure the integrity of telecom networks, enabling them to operate securely as they evolve to support future technologies.
• Promotion of Local Manufacturing under ‘Atmanirbhar Bharat’: The Indian government’s “Atmanirbhar Bharat” initiative is driving a push toward local manufacturing of telecom equipment. In response to supply chain disruptions and geopolitical factors, the government is incentivizing the production of telecom components like antennas, 5G equipment, and network infrastructure within India. This initiative not only reduces dependence on imports but also boosts India’s capabilities in high-tech manufacturing, creating jobs and fostering innovation in the telecom sector. Local manufacturing will play a significant role in India’s goal to become a global hub for telecom equipment production.
Recent developments in India’s telecom equipment market ranging from the 5G rollout to increased investments in fiber networks, cloud-based technologies, enhanced cybersecurity, and local manufacturing are reshaping the sector. These trends are helping India build a resilient, high-capacity telecom infrastructure that meets growing digital demands while positioning the country as a leader in global telecommunications. As these developments continue, India’s telecom equipment market is set to grow exponentially, driving both economic growth and technological advancement across various industries.
Strategic Growth Opportunities for Telecom Equipment Market in India
The telecom equipment market in India is experiencing significant growth, driven by the country digital transformation and increasing demand for faster, more reliable connectivity. As India embraces technologies like 5G, fiber optics, and the Internet of Things (IoT), there are numerous strategic growth opportunities across key applications. These opportunities are poised to transform the telecom landscape, enabling more efficient communication, fostering innovation, and supporting economic development. The following highlights five key growth opportunities by application, which are shaping the future of the telecom equipment market in India.
• 5G Network Infrastructure Development: The rollout of 5G technology represents a transformative growth opportunity in India’s telecom equipment market. Telecom operators are investing heavily in 5G infrastructure, including base stations, antennas, and routers. The government’s push for nationwide 5G deployment is expected to boost demand for advanced equipment. This growth opportunity will enable high-speed connectivity, enhancing industries such as healthcare, manufacturing, and education. As India moves toward becoming a global leader in 5G, the need for high-performance telecom equipment will be a key driver of growth in the market.
• Fiber Optic Network Expansion: Fiber optic networks are critical for meeting the demand for high-speed internet and data services. With the Indian government’s initiatives like BharatNet to extend broadband access, the fiber optic network market is experiencing rapid expansion. Telecom companies are investing in both urban and rural areas to lay down fiber-to-the-home (FTTH) and fiber-to-the-tower (FTTT) networks. This growth opportunity is crucial for the adoption of 5G and IoT technologies, ensuring seamless connectivity and laying the foundation for next-generation applications. As more fiber infrastructure is developed, the demand for fiber-related telecom equipment will surge.
• Smart City Infrastructure Development: India push for the development of smart cities presents a significant growth opportunity for telecom equipment in areas like smart grids, public safety networks, and digital governance. Telecom companies will need to provide equipment to support the connectivity needs of these cities, including sensors, communication towers, and data centers. The integration of 5G and IoT in smart cities will require high-quality telecom infrastructure to manage the large volumes of data generated. As smart city initiatives expand, telecom companies are poised to capitalize on the need for advanced equipment to support these urban developments.
• Internet of Things (IoT) and Industrial IoT (IIoT): The growing adoption of IoT and Industrial IoT (IIoT) technologies offers substantial growth opportunities for telecom equipment providers. IoT applications in sectors like agriculture, healthcare, and transportation are driving the need for high-performance telecom networks and devices that can handle massive data and real-time communication. Telecom companies are investing in the infrastructure needed to support IoT networks, including low-power wide-area networks (LPWAN), and advanced connectivity solutions. This trend is expected to stimulate demand for equipment such as IoT gateways, sensors, and communication devices, driving market growth across both consumer and industrial applications.
• Cybersecurity Solutions for Telecom Networks: As telecom networks become more sophisticated and integrated with digital services, cybersecurity is emerging as a critical growth opportunity. Telecom companies are increasingly investing in secure network infrastructure, including encryption technologies, secure routers, and monitoring systems to protect against cyber threats. With the proliferation of 5G, IoT, and cloud-based services, the need for robust cybersecurity solutions is more pressing than ever. This demand for security-focused telecom equipment will continue to grow as India accelerates its digitalization, ensuring that networks remain secure and resilient in the face of evolving cyber threats.
The telecom equipment market in India is poised for significant growth, driven by strategic opportunities across key applications like 5G network infrastructure, fiber optic expansion, smart city development, IoT/IIoT adoption, and enhanced cybersecurity. These opportunities are fueling innovation in telecom technology, creating a demand for more sophisticated and resilient equipment. As India continues to advance its digital transformation and infrastructure development, these growth opportunities will help shape the future of telecom, making the sector a critical enabler of the country’s broader economic and technological progress.
Telecom Equipment Market in India Driver and Challenges
The telecom equipment market in India is influenced by a variety of drivers and challenges, shaped by technological advancements, economic conditions, and regulatory frameworks. These factors are significantly impacting the growth and evolution of the market, with certain drivers fueling expansion, while challenges hinder progress. As India continues its digital transformation, these factors play a crucial role in determining the success of telecom infrastructure projects, 5G rollouts, and the overall telecom ecosystem.
The factors responsible for driving the telecom equipment market in India include:
• 5G Rollout and Network Expansion: The rollout of 5G technology is one of the strongest drivers of growth in India’s telecom equipment market. The government’s proactive stance on 5G adoption, coupled with growing demand for faster, more reliable connectivity, is creating substantial investment opportunities. Telecom operators are investing in advanced network equipment such as base stations, antennas, and routers to support 5G infrastructure. This expansion will foster innovation across various industries, including healthcare, manufacturing, and smart cities, thereby driving demand for telecom equipment and services.
• Government Initiatives and Policy Support: The Indian government is actively supporting telecom growth through initiatives like the National Digital Communications Policy (NDCP) and BharatNet. These policies are aimed at expanding broadband coverage across urban and rural areas, boosting telecom infrastructure, and increasing internet penetration. Financial incentives and spectrum auctions also promote competition among telecom players, creating opportunities for equipment manufacturers. Such policy support is key to the sector expansion, making telecom equipment more accessible and fostering growth in the country’s telecom ecosystem.
• Rising Demand for Data and Internet Connectivity: India increasing demand for data services is a key driver of the telecom equipment market. With a growing digital economy, driven by smartphone penetration, e-commerce, digital payments, and remote work, the need for robust telecom infrastructure has surged. Consumers and businesses alike require high-speed internet access, which drives telecom operators to invest in modern, scalable equipment like fiber optic cables, routers, and data centers. This demand for data-intensive services will continue to spur investments in telecom infrastructure and equipment.
• Expansion of IoT and Industrial IoT (IIoT): The growing adoption of the Internet of Things (IoT) and Industrial IoT (IIoT) technologies offers a significant growth opportunity for the telecom equipment market. As IoT applications expand across sectors such as agriculture, healthcare, and smart cities, there is an increased need for telecom equipment to support high volumes of data and real-time communication. Telecom operators are investing in infrastructure to enable the rollout of LPWAN (Low Power Wide Area Networks), 5G networks, and IoT devices. This trend is expected to drive the demand for communication equipment that can support IoT systems effectively.
• Localization of Telecom Equipment Manufacturing: The Indian government’s “Atmanirbhar Bharat” initiative, which aims to reduce dependence on foreign imports, is driving the local manufacturing of telecom equipment. Policies promoting Make in India and the establishment of manufacturing hubs for components like 5G equipment, antennas, and network infrastructure are enhancing India’s self-reliance. This shift not only strengthens the local supply chain but also reduces the cost of equipment, creating a competitive advantage in both domestic and international markets. Local manufacturing also fosters job creation and technological innovation within the country.
Challenges in the telecom equipment market in India are:
• Spectrum Scarcity and Regulatory Hurdles: One of the key challenges facing the telecom equipment market in India is the scarcity of spectrum, particularly for 5G deployment. The high cost of spectrum, combined with regulatory hurdles and delayed auctions, is a significant barrier to the timely rollout of 5G services. Telecom operators often struggle to acquire sufficient spectrum for new technologies, which impacts their ability to deploy and expand their networks. These regulatory challenges create uncertainty for telecom equipment providers, making it difficult to forecast demand and plan long-term investments.
• High Operational and Capital Expenditure: The telecom sector in India faces high operational and capital expenditure due to the constant need for network upgrades, maintenance, and infrastructure development. The cost of procuring advanced equipment, such as 5G base stations and fiber optic cables, is substantial. Telecom operators also face pressure from the government and regulatory bodies to reduce service costs, which limits their ability to recover capital expenses. This financial burden on telecom operators affects the overall growth of the telecom equipment market, as it slows down investments in critical infrastructure.
• Cybersecurity and Data Privacy Concerns: With the increasing adoption of digital services, cybersecurity and data privacy concerns have become critical challenges for the telecom sector. Telecom networks, especially those supporting 5G and IoT, are more vulnerable to cyberattacks, which can jeopardize data security and network integrity. Telecom operators are under increasing pressure to invest in cybersecurity solutions to protect both consumer data and network infrastructure. The growing threat of cyberattacks requires telecom equipment providers to innovate and offer more secure, resilient solutions, thus adding complexity and cost to the market.
The telecom equipment market in India is being shaped by powerful drivers such as 5G rollout, government initiatives, increasing demand for data, IoT expansion, and localization of manufacturing. However, the market faces several challenges, including spectrum scarcity, high operational costs, and cybersecurity risks. These factors will continue to influence the pace of growth and innovation in the sector. Overcoming these challenges while leveraging growth opportunities will be critical for positioning India’s telecom equipment market as a global leader in the coming years.
List of Telecom Equipment Market in India Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, telecom equipment companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the telecom equipment companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Telecom Equipment Market in India by Segment
The study includes a forecast for the telecom equipment market in India by technology, infrastructure, and end use industry.
Telecom Equipment Market in India by Technology [Analysis by Value from 2019 to 2031]:
• 2G and 3G
• 4G LTE
• 5G
Telecom Equipment Market in India by Infrastructure [Analysis by Value from 2019 to 2031]:
• Wired
• Wireless
Telecom Equipment Market in India by End Use Industry [Analysis by Value from 2019 to 2031]:
• BFSI
• IT and Telecommunication
• Retail
• Media and Entertainment
• Military and Defense
• Healthcare
• Others
Features of the Telecom Equipment Market in India
Market Size Estimates: Telecom equipment in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Telecom equipment in India market size by technology, infrastructure, and end use industry in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different technology, infrastructure, and end use industry for the telecom equipment in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the telecom equipment in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q.1 What are the major drivers influencing the growth of the telecom equipment market in India?
Answer: The major drivers for this market are rising number of mobile users, increasing proliferation of the internet of things, smart infrastructure, and connected devices, and growing demand for 5G technology across the globe.
Q2. What are the major segments for the telecom equipment market in India?
Answer: The future of the telecom equipment market in India looks promising with opportunities in the BFSI, IT and telecommunication, retail, media and entertainment, military and defense, healthcare, and consumer electronic markets.
Q3. Which telecom equipment market segment in India will be the largest in future?
Answer: Lucintel forecasts that wireless is expected to witness highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the telecom equipment market in India by technology (2G and 3G, 4G LTE, and 5G), infrastructure (wired and wireless), and end use industry (BFSI, IT and telecommunication, retail, media and entertainment, military and defense, healthcare, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?