Buoyed by demand from the telecom and IT sector, the semiconductor market in India is poised to grow at a CAGR of 22.1 per cent to touch USD 8.04 billion in 2011, according to the India Semiconductor Association (ISA).

This is against revenues of USD 5.39 billion in 2009, the ISA said.

"With the completion of the 3G and BWA auctions, there will be increased demand for wireless handsets, 3G network devices, WiMax equipment and notebooks, all of which will provide a fillip to the Indian semiconductor industry," ISA Chairman Biswadip Mitra told reporters here.

There is also a good demand from the defence sector, along with the DTH industry (for set-top boxes), aerospace and smart card companies, he added.

According to the ISA-Frost & Sullivan India Semiconductor Market 2009?2011 report, the Indian semiconductor market grew 15.6 per cent in 2009, in contrast to the global market that shrunk by 11 per cent from 2008 levels.

The available opportunity is also huge. "The opportunity in the semiconductor industry is expected to witness a CAGR of 34.8 per cent in the Total Available Market (TAM), the revenue of which is anticipated to climb to USD 4.84 billion in 2011 from USD 2.66 billion in 2009," the report said.

The report said that design and manufacture of electronic systems in the country was also a potential opportunity.

"The total available market for the Indian electronics industry is anticipated to rise significantly to USD 37.1 billion in 2011 from USD 25.4 billion in 2009, growing at a CAGR of 21.4 per cent. As ISA, we will work with the various players to tap the opportunities in the market," Mitra said.

The opportunity is available across multiple segments like telecom, automotive and healthcare, he added.