India’s growing economy coupled with highly talented design engineers will make it the “design destination” for Asia. In 2007, the number of people engaged in the embedded software industry stood at 106,600; and this number is projected to growth to about 179,800 in 2010, at CAGR 19% (source: ISA-IDC 2008).
India's electronic equipment consumption, which was $28.2 billion in 2005, is expected to reach $363 billion by 2015, growing at a CAGR of nearly 30%. This would account for 11% of the global market by 2015, a contrast from 1.8% in 2005. The country’s electronic equipment production was $10.99 billion in 2005 and is projected to grow to about $155 billion by 2015, according to ISA estimates. The growing Indian consumer market will spur the creation of India- specific products, leading to an increased focus on India a market for design services companies.
The distinguished factor for design services will be value rather than cost and as customers expect more value, there will be pressure on design services companies to provide better quality services.
The growth of Indian MNCs has also been a driving force to build indigenous products that cater to the emerging and developing world.
An increased expenditure that is forecast for certain sectors including telecommunication, defense, automotive and consumer electronics will also contribute to the growth over the next five years.
Developments in the country’s power industry will help the embedded systems industry through the introduction of sophisticated electronic equipment.
The advantages
India, compared to other Asian countries, has highest number of English speaking engineers. Indian engineers are able to develop products for the world’s emerging markets. The availability of huge engineering pool and the ability to leverage cost advantages as compared to other countries makes India a favorable destination. Enhancing this is the country’s strong technical education system, which has reduced entry barriers, offered government support in the form of STPI and EOU schemes, and produced a strong IPR framework.
You can reach Venkatesh Kumaran at venkatesh.kumaran@windriver.com
