Highlights of the ISA-Frost & Sullivan report includes a detailed assessment of the electronic equipment consumption and the semiconductor content for 20 semiconductor product categories across 52 end-user product segments. It also includes an assessment of the direct, indirect and induced economic impact of the semiconductor-driven industry in India, in terms of GDP and employment generation.

The study estimates that consumption of electronic equipment in the country would rise to $363 billion by 2015 - from $28.2 billion in 2005 - at a compound annual growth rate (CAGR) of 29.8 per cent. GDP contribution from this sector will grow to more than 12 per cent in 2015, from about 2 per cent in 2005, creating a much larger induced impact on the economy of the country. The study also reports on the dynamics of the Indian semiconductor market, information for formulating strategy, manpower challenges and the future course of the market and its constituents.

The first volume, India Semiconductor Market, 2005-15: Growth, Trends and Forecasts, provides a detailed analysis of the rapidly growing semiconductor content in the electronic equipment end-user markets and its impact on the semiconductor market in India.

The second volume, India Semiconductor and Embedded Design Market, 2005-15: Growth, Trends and Forecasts, comprises detailed analyses and forecasts of the semiconductor and embedded design market. It also outlines engineering manpower costs and future requirements.

Speaking at the launch, India Semiconductor Association chairman Rajendra Khare said, "The Indian economy has become more dynamic than ever before, as GDP growth went from 7 per cent in 2004-05 to 8 per cent in 2005-06. The semiconductors market reflects the overall economic activity, and is experiencing spectacular growth in India. ISA is committed to providing authentic and comprehensive data that will place India in its rightful position on the global semiconductor map. This is our first strategic study on the Indian semiconductor space and we hope that it will provide direction for sound business plans, facilitate the ideation and innovation processes and help identify customer needs in the semiconductor industry."

Frost & Sullivan's managing director and partner for South Asia and the Middle East Aditya Sapru added: "The semiconductor market in India will see heightened activity with an increase in the electronics equipment manufacturing industry in India. The reports are valuable to semiconductor companies as well as electronic manufacturing services (EMS) companies, design companies, electronic design automation (EDA) companies and original equipment manufacturers (OEM)."

"Growth in the sector would open new windows of opportunity for the IT services industry and, eventually, electronics and semiconductor manufacturing, which have proven to be significant growth engines for many economies in Asia", said Citigroup Global Markets India director Saurabh Shah. The study has been sponsored by Citigroup.

The ISA-Frost & Sullivan report outlines that Indian electronics equipment production grew at 25 per cent in 2005, and is expected to reach a growth rate of 50 per cent by 2010 and 34 per cent in 2015. Indian electronics equipment manufacturing is expected to grow at 5.5 times the rate of global electronics equipment production through 2015.

The report covers all the major end-user products and captures their individual contribution to the total market, with market and technology trends. It focuses on key verticals such as communications, consumer electronics, automobiles, IT & hardware, medical electronics and industrial automation, with current data and projections till 2015.

The second volume shows that the semiconductor and embedded design industry in India generated revenues of $3.25 billion in 2005, and is expected to boom to $43 billion by 2015, growing at a CAGR of 30 per cent. The key factors driving the growth of design activity in India include rapidly growing local markets, a strong education infrastructure with industry participants collaborating with academics for training manpower in microelectronics, low-cost design talent, short product lead-times, reduced barriers to entry, government support, and improved infrastructure.

The India Semiconductor Association (ISA) was established in 2004 and is headquartered in Bangalore. It has nearly 90 members comprising leading companies from the industry, from Delhi, Hyderabad, Chennai and Ahmedabad. It has strategic partnerships with global bodies like FSA, TSoCC and VSI.

Frost & Sullivan has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Its clientele includes Global 1000 companies, emerging companies, and the investment community.