The Indian PC market, after facing various challenges in prior years, has experienced a notable resurgence in 2024, achieving a commendable 3.8 percent year-over-year growth according to IDC’s recent analysis. This growth signifies not just a recovery but also a shift in consumer and enterprise preferences, influenced by emerging technologies and changing market dynamics.
Market Leaders and Their Strategies
In the competitive landscape of PC manufacturing, HP has emerged as the clear leader, with a dominant market share of 30.1 percent. The company’s growth strategy is multifaceted, focusing on robust performance within government and enterprise sectors, where it experienced increases of 14.7 percent and 14.3 percent, respectively. However, the consumer segment has presented challenges for HP, which saw a decline of 7.5 percent, likely due to intensified competition, particularly in online retail channels.
Lenovo closely trails HP with a 17.2 percent market share, showing consistent growth across both commercial and consumer segments. The company reported a 7 percent increase in the consumer segment and 7.4 percent in commercial sales, illustrating a well-rounded approach to diversifying its market presence. This strategy appears effective as Lenovo capitalizes on rising demands for both personal and professional devices.
Dell and Acer follow closely, with Dell holding a 16.1 percent share and Acer at 15.1 percent. Notably, Acer has made impressive gains in the consumer market, achieving 48.4 percent growth through a combination of competitive pricing and strategic discounts, especially via eTailers. This aggressive push has allowed Acer to carve out a significant niche, while maintaining customer loyalty and market relevance.
Asus, while lagging behind the top four, has still managed to secure a 7 percent market share. Its strategic focus on maintaining a healthy inventory in the commercial sector resulted in an 18.4 percent YoY growth, showcasing how careful inventory management can lead to success even in a highly competitive environment.
The consistent growth of the Indian PC market can be attributed to several key factors. One significant influence has been the increased demand for AI-powered devices and gaming PCs, which have been gaining traction among consumers since mid-2024. The rise in popularity of lower-cost AI notebooks powered by Intel Core Ultra and AMD Ryzen AI processors indicates that consumers are seeking advanced technology without the steep price tag traditionally associated with premium devices.
Moreover, the commercial PC sector has benefitted from a flourishing public sector purchase trend and heightened refresh order activities within businesses. As organizations seek to modernize their IT infrastructure, orders for upgraded devices have surged, particularly as the lifespan on older devices extends to three to four years. This expected cycle of replacement is anticipated to further fuel growth in the market.
Despite the positive growth trajectory, certain challenges loom on the horizon, particularly regarding the fluctuating prices of PCs due to the weakening rupee. This situation could adversely affect price-sensitive segments, such as small and medium businesses (SMBs) and individual consumers, potentially dampening the momentum built over the past year.
Industry experts predict that while the immediate future appears robust due to ongoing demand from both consumer and commercial sectors, continuous competition in the market will require manufacturers to innovate and adapt effectively. Companies that can harness customer insights, anticipate market trends, and pivot their strategies accordingly will likely maintain a competitive edge.
The Indian PC market is navigating a transformative period marked by growth, driven by strategic positioning of key market players and evolving consumer demands. As manufacturers align their offerings with technological advancements and market trends, the stage is set for more significant developments in the forthcoming years. The emphasis on AI and gaming, combined with enterprise technological upgrades, will be critical to sustaining this growth trajectory and overcoming the impending challenges in the market.
