NEW DELHI: India, the world's third largest smartphone market, is also a huge market for used handsets and is forecast to generate about $1.7 billion for owners this year, a report by consultancy firm Deloitte said.
In its TMT Predictions 2016, Deloitte India said India is estimated to generate about $1.7 billion for smartphone owners at an average value of about $90 in FY 2016 with outright sale or trade-in of approximately 20 million handsets.
"Growing at a CAGR of about 32% till 2020, the used smartphone market is forecast to grow to about 46 million units generating an estimated $4 billion for its owners," it added.
India is the world's third largest market for smartphones after China and the US. Analysts expect India to overtake the US market in the next few years, fuelled by high consumption by youngsters and falling data prices.
Also, global sales of wearable devices is expected to be approximately 250 million units by 2018 and a major portion of the sales will be driven by North America and Europe.
"India is expected to have some participation in this segment. Fitness trackers and smartwatches will see mass adoption in the coming years and expect safety devices geared towards location tracking and emergency assist to also see significant adoption," it said.
The sixth edition of Deloitte India's predictions also highlighted that the boom in mobile commerce will be powered by social media.
Mobile ad spends are expected to grow from current 2-4% to 15-20% of the overall media expenditure by 2020, it said.
Mobile advertising in India is the fastest growing among all segments in the digital advertising space and is gaining momentum through various apps and mobile sites.
"With telecom operators launching 4G and hi-speed Wi-Fi services, mobile-based internet connections are set to surge which will also fuel growth in social media users," Deloitte India senior director PN Sudarshan said.
More and more consumers in India are accepting the idea of buying products online through social media and accordingly, e-marketers will have to devise their strategies factoring in the digital surge, he added.
In the coming years, Deloitte India expects digital-first brands (brands that can only be purchased online) to see strong growth across categories like budget fashion, furniture, jewellery and groceries.