How big is India’s Computer Accessories Market? Innovations expected by FY25

The computer accessories manufacturing sector in India is witnessing significant growth. This heightened growth is owing to the introduction of the Make in India campaign by the Government of India, along with other supportive measures that are empowering domestic manufacturers to come up with innovative solutions. While the vast majority of this market was catered to by imports only a few years ago, the recent paradigm shift by policymakers and industry stakeholders has led to manufacturing growth in the country, with much of the products being exported to key international locations as well.

This growth is additionally boosted by customer demands domestically, whose interests have exceeded conventional computer accessories like mice and keyboards. The subsequent trend has surfaced customer demand for cutting-edge accessories like AI Mouse and keyboards, an aspect that is quickly gathering steam. A recent prominent report suggests that demand for mice with new-age technologies like AI, more keys, and other aspects had amplified from 2% in the first quarter of 2022 to 4% in the fourth quarter of the same FY. Other premium accessories like Bluetooth, RGB lighting, portable keyboards, and thin mice have also witnessed a rapid demand increase since then. This demand is also reshaping India’s larger electronics export, especially to the northern hemisphere in the USA, along with Hong Kong, Mexico, the Netherlands, and the Gulf countries — geographies that have emerged as top importers of Indian-made computer accessories.

Domestically, the Indian computer accessories market is estimated to increase at a considerable 11.6% CAGR between 2020 and 2026. This growth is further supplemented by enhanced digitalization efforts within the country, increased income, and a holistic rise in demand. Apart from Make in India, other initiatives like Digital India are also supplementing the creation and maintenance of this market, leading to enhanced innovation and scalability in the space.

Market enablers & trends

The comprehensive growth of the computer accessories market can be attributed to a few critically contributing aspects such as digitalization, increasing income of potential customers, and demand for wireless products in the space. To begin with, the amplifying digitalization across India and global markets are leading to a growing emphasis on automating operations across corporations, supplementing the demand for various computer accessories such as mice, keyboards, storage devices like SSDs, and others.

Furthermore, the demand is also boosted as Indians are becoming subject to increasing disposable incomes, allowing them to purchase cutting-edge computer accessories. This is directly translating to significantly higher sales figures for manufacturers in the space, assisting in holistic scalability and growth. This paradigm shift is also resulting in the growing emphasis on wireless technology in regards to computer accessories and Bluetooth-integrated devices — a favorable aspect that is becoming a major contributor towards market growth.

Another rising trend in the sector is the development of new-age technologies such as AI, as manufacturers are adopting a proactive stance to undertake R&D efforts to integrate these digital technologies. The reason behind the amalgamation of these technologies is to raise user convenience garner a competitive stance against competitors and refine market presence.

Innovations & Future Outlook

Significant innovations are taking place in the Indian Computer Accessories industry to cater to market demands. To begin with, refining existing wireless and Bluetooth technologies is one of the priorities in the market, to manufacture cutting-edge keyboards, mice, headsets, speakers, and charging pads. Driven by extensive R&D efforts, the primary goal of this comprehensive effort is to offer enhanced flexibility, and convenience to achieve an immersive user experience.

Furthermore, the combination of AI and the Internet of Things (IoT) is proving to be a transformative idea in the computer accessories market. This is leading to the development of smart appliances such as speakers, cameras and voice assistants, adaptors, and wearable accessories that are transforming how computer accessories are perceived — leading to a comprehensive shift in user satisfaction, demand, and brand scalability. In the next couple of years, the market will increasingly be filled with accessories that increasingly depend on AI as a crucial enabler to raise efficiency and productivity. For example, Mouse products that are equipped with AI are designed to reduce click sounds and raise accuracy through voice translations, OCR screenshots, smart writing, voice typing, converting handwritten notes, and many more features. The impact of these innovations is far from limited to enhancing productivity, but towards reshaping future customer outlook — acting as a critical enabler of a comprehensive shift.

-- Prashant Bora, MD & CEO of OTEK.