India's PC penetration lags significantly behind China, presenting a substantial opportunity for growth, according to Logitech. Moninder Jain, Vice-President & Head of Emerging Markets, Logitech, observes that India's PC penetration is roughly where China's was two decades ago. This gap, however, is rapidly transforming into a promising prospect, with projections indicating a surge in the Indian PC market in the coming years.

Current PC Market Scenario

Despite a post-pandemic sales decline that led to a 6.6% year-on-year drop in PC shipments to 13.9 million units in 2023, the Indian PC market demonstrates resilience and potential. HP retained its leading position with a 31.5% market share. The market is anticipated to grow 6% in 2025, exceeding 15 million units, with growth accelerating in 2026. This expansion is fueled by several factors, including increased demand from small and medium-sized businesses (SMBs) and enterprises, driven by the refresh cycle from the end of support for Windows 10 devices and the rising availability of AI-enabled PCs.

Factors Driving Growth

Several factors contribute to the optimistic outlook for PC growth in India:

• Economic Growth: India's economic targets are on track, with projections expecting it to be a $6.7 trillion economy by 2031. This growth will organically expand the devices market.
• Digital Transformation: Initiatives such as Digital India, Make in India, and Startup India are focused on building digital infrastructure, promoting innovation, and empowering citizens. These programs are expanding internet access and improving digital infrastructure, especially in rural areas.
• Digital Public Infrastructure (DPI): DPI, including Aadhaar, UPI, and DigiLocker, is revolutionizing service delivery and enhancing financial inclusion, streamlining governance, and improving access to social benefits.
• Government Initiatives: The government is actively promoting digitalization through initiatives like Digital India, launched in 2015 to expand digital infrastructure, improve online service delivery, and promote digital literacy.
• Education Sector: The education sector is identified as a key area that could fuel PC adoption across the country. Platforms like DIKSHA and SWAYAM provide digital resources and free higher education courses, bridging educational gaps.
• Demand from Tier-II and Tier-III Cities: Growth is expected to be driven by demand from tier-two and tier-three cities, with users prioritizing performance, durability, and after-sales service.
• AI-Capable PCs: AI-capable PCs are expected to move from niche to mainstream, as enterprises integrate them into their procurement strategies.
• Local Manufacturing: The Indian government's push for local manufacturing is driving growth, with laptop imports expected to reduce by 5% annually by late 2025. Policies mandating local sourcing for government tenders are boosting domestic manufacturing.

Challenges and Opportunities

Despite the optimistic outlook, challenges remain:

• Digital Divide: Gaps in access, affordability, and digital literacy continue to exclude large sections of the population, particularly in rural areas and among women.
• Affordability: The high cost of smartphones, computers, and data plans makes digital participation difficult for low-income households.
• Digital Literacy: Many lack the skills needed to engage effectively in the digital economy, particularly lower-income groups.

To address these challenges, Logitech is investing in customer education initiatives, marketing campaigns, and direct corporate engagement to ensure businesses understand the benefits of video conferencing. The company focuses on performance, innovation, and community engagement, particularly in the PC gaming and eSports arena.

Logitech's Perspective

Logitech sees significant opportunity in the Indian market. Moninder Jain stated that India is exactly where China was in 2004 in terms of per capita income and PC install base and expects massive growth in the PC market by 2027. Logitech is also integrating AI into its products, focusing on meaningful integration rather than just talking about AI. One example is Logitech's Agentive AI, built in collaboration with NVIDIA, which acts like a producer and wingman for streamers, enhancing their live performance and guiding them in real time.

Conclusion

While India's PC penetration lags behind China, the country presents a huge opportunity for growth. Factors such as economic expansion, digital transformation, government initiatives, and increasing demand from various sectors are driving this growth. Addressing the digital divide and affordability issues will be crucial to unlocking the full potential of the Indian PC market. Companies like Logitech are well-positioned to capitalize on this opportunity by focusing on innovation, customer education, and strategic partnerships.