As 2025 draws to a close, the electronics industry stands at a defining inflection point. From rapid advances in semiconductors and embedded intelligence to the convergence of AI, electrification, and sustainable manufacturing, the past year has tested resilience while unlocking new opportunities. Amid supply-chain recalibrations, policy momentum, and accelerating innovation across design, fabrication, and deployment, industry leaders have been compelled to rethink strategies and redefine growth.
In this year-end reflection, Electronics Era brings together perspectives from key voices across the electronics value chain—leaders who have navigated disruption, driven innovation, and laid the groundwork for what lies ahead. Their insights capture not just the milestones of the year gone by, but also the priorities, challenges, and technologies that will shape the electronics ecosystem in 2026 and beyond.
Indian Space Association (ISpA)
2025 marked a decisive year for India’s space sector as policy reforms translated into tangible execution across launch, satellite manufacturing, Earth observation, space data, and satellite communications. The year saw contracts awarded, production lines established, satellites deployed, launch vehicles move closer to operational readiness, and data-driven services scale across civilian, commercial, and strategic domains. India’s space economy, currently valued at approximately USD 9 billion, is now on a clear trajectory towards USD 44 billion in the coming decade. Growth during 2025 was driven largely by private industry, enabled by policy continuity, institutional clarity and an expanding public–private partnership framework. By the end of 2025, India’s space sector had moved firmly into an execution-led phase. While challenges remain in manufacturing scale, long-term capital access, and assured demand, the year established a clear foundation for sustained growth, deeper industry participation, and India’s expanding role in the global space economy.
Mahindra Group
Our SUV business led the market with record share, reaffirming our ability to anticipate what customers genuinely desire. Our farm equipment business achieved its highest ever quarterly market share, proving that innovation on the ground transforms lives. Meanwhile, our electric three-wheelers continued to dominate a highly competitive space. Tech Mahindra sharpened its edge in AI and operational excellence, delivering its eighth consecutive quarter of margin expansion, while Mahindra Finance scaled new heights, combining robust profit growth with industry-leading asset quality. Mahindra Lifespaces continued its momentum in sustainable real estate with record Gross Development Value additions and industry-first Net Zero projects. Mahindra Holidays conceptualized Mahindra Signature Resorts, marking a bold shift toward experiential travel. And Mahindra Susten continued to power India’s green transition, reinforcing its leadership in renewable energy innovation.
Lexar Co
“2025 has been a year where people’s relationship with technology has become more personal and more data-driven than ever. From creators and gamers to everyday users, the demand for faster, more reliable, and higher-capacity flash memory increased as digital content, AI tools, and real-time experiences became part of daily life. The industry saw strong momentum toward high-speed interfaces, performance-focused SSDs, and memory solutions that are capable of handling heavier workloads without losing their reliability.
Looking ahead to 2026, the focus will shift even more toward enabling seamless, intelligent experiences, where storage works quietly in the background but plays a critical role. As a leader in flash memory innovation, Lexar remains committed to designing solutions that empower people to create more, work at a higher speed, and have confidence in their data, while being a forerunner in the next stage of a AI data-driven future. “
SiMa.ai
In 2026, this shift will accelerate as AI becomes indispensable in industries where failure is not an option. The defense industry, for example, is rapidly embracing AI as drones evolve into essential tools, while in manufacturing, AI is enabling near-perfect production with minimal waste. This convergence of human craftsmanship and machine marks a new paradigm where intelligence lives within the product itself, not just in distant data centers. Machines will become far more interactive, intuitive, and collaborative, ushering in a new era of seamless human-AI partnership, we call it ‘the ghost in the machine.
For the first time, multimodal AI models will operate directly inside products such as robots, vehicles, industrial systems, and medical devices. This shift is enabled by low-power Physical AI platforms that can execute complex pipelines on the edge, allowing machines to perceive, reason, and act without reliance on the cloud. As a result, 2026 will mark a turning point where the defining features of a product are no longer mechanical or digital add-ons, but the intelligence embedded within it.
India Electronics and Semiconductors Association (IESA) and SEMI India.
- Electronics–
“India’s Electronics Growth Is Structural, Not Cyclical”
“India’s electronics growth story is no longer episodic—it is structural. Policymakers, global and Indian industry leaders, and ecosystem stakeholders are now aligned on building resilient, sustainable, and globally competitive value chains. As discussions in 2025 highlighted—spanning policies and incentives, electronics value addition, skilling, academic partnerships, and industry collaboration—the next phase must focus on execution, joint R&D, and technology transfer. The increased use of locally made semiconductors and components will be central to deeper value addition and the long-term success of India’s electronics industry.”
- Semiconductors-
“India’s Semiconductor Shift: From Intent to Execution”
“India’s semiconductor journey has moved from intent to execution, marking a clear structural shift. Policymakers, global and Indian industry leaders, and ecosystem stakeholders are aligned on building resilient and competitive semiconductor value chains. Key priorities discussed in 2025, including semiconductor policies and incentives, human capital development, fabs, advanced packaging and OSAT, academic partnerships, and industry engagement, underscore the need for joint R&D, technology transfer, and well-defined pathways to scale. Over the next three years, disciplined execution and localisation across design, manufacturing, and advanced packaging will be critical to enable chips for high-volume electronic products consumed locally.”
- Electronics & Semiconductors-
“From Intent to Execution: India’s Electronics & Chip Inflexion Point”
“India’s electronics and semiconductor journey has moved from intent to execution. This is not a spike, but a structural shift. Policymakers, global and Indian industry leaders, and ecosystem stakeholders are now aligned on building resilient, sustainable, and globally competitive value chains. Discussions in 2025 spanning policies and incentives, talent development, academic partnerships, fabs, advanced packaging and OSAT, electronics value addition, and industry collaboration have set clear priorities for the next phase. The focus must now be on disciplined execution, product development, research and development, and technology transfer. Over the next three years, deeper localisation across design, manufacturing, and advanced packaging will be critical. Increased use of locally made semiconductors and components must become a clear priority. This will enable scalable, value-added manufacturing and stronger system design capabilities. Together, these efforts will support high-volume electronic products for both domestic consumption and global markets.”
STL Digital
“As we move into 2026, enterprises are shifting to an AI native world where intelligence is embedded into every facet of digital transformation, from engineering and operations to customer experience and decision making. Cloud, hybrid, and edge ecosystems will continue to merge, creating environments where data moves more intelligently, and security models become predictive and preventive rather than reactive.
The industry is also moving clearly toward outcome-focused and domain-specific solutions. Clients increasingly look for measurable value and industry depth instead of scale or manpower. With low code, no code, and AI agents enabling business users to participate directly in innovation, IT teams will take on the role of strategic enablers, guiding platforms, governance, and responsible AI practices. Sustainability, transparency, and trust will become non-negotiable in how enterprises choose their technology partners.
At STL Digital, we believe the way forward lies in bringing together intelligence, agility, and trust. Our AI, cloud, cybersecurity and engineering capabilities help enterprises enter this new era with confidence, delivering innovation that is secure, sustainable and strongly aligned with real business outcomes.”
Yokohama India Pvt. Ltd
Yokohama India continues to outpace market growth in 2025, delivering double-digit growth as India’s passenger vehicle market continued its structural shift toward SUVs, larger tyre fitments, and premium offerings. On the OEM side, the shift has been even more pronounced. 17-inch and above tyres, now account for nearly a quarter of OEM supply, growing rapidly as SUVs and premium vehicles redefine the fitment landscape. Aligned with evolving market needs, Yokohama India introduced 20 inch tyres manufactured in India, and the commercial rollout from our Vizag facility strengthened our manufacturing capacity at exactly the right time. This expansion supports growing replacement-market demand while also enabling our OEM strategy.
VE Commercial Vehicles
Policy reforms, GST 2.0, investments in logistics infrastructure under PM Gati Shakti & e-Bus Sewa and positive consumer sentiment encouraged the industry to transition towards newer, safer, and more efficient vehicles. At VECV, this evolving environment aligns with our Nayi Soch approach to driving relevant modernisation in the CV market. The year marked several important milestones, including our foray into the SCV segment with the introduction of the Eicher Pro X range in both electric and diesel variants. We also introduced electric buses for school and tarmac applications and the next-generation Pro Plus range of Light and Medium Duty Trucks with improved performance, coinciding with the transition to AC Cabins. Our MyEicher App connects over 350,000 buses and trucks and we have over 1200 touchpoints across the country with the capability to reach a majority of customer vehicles within 3-4 hours.
