India’s consumer-tech industry is poised for significant growth, fueled by robust digital public infrastructure and population-scale solutions, as highlighted in a new report from early-stage venture capital firm Chiratae Ventures in collaboration with Google and 1Lattice. The report indicates the potential for the consumer tech industry to achieve a total addressable market (TAM) of $300 billion by 2027, a substantial increase from the current $100 billion.
“With a current market worth $100 billion and an expected surge to $300 billion by 2027 (CAGR 25%), India’s consumer tech isn’t a fleeting but a substantial force,” remarked Roma Dixit, Director of Financial Services at 1Lattice. The report, titled “Cracking the Code: Unveiling India’s Consumer Landscape,” delves into trends within the consumer tech industry, providing detailed analyses of gaming, e-commerce, fintech, entertainment, and healthcare sectors.
Key findings highlight that over 500 million Indians actively seek entertainment and gaming services daily, with more than 1.2 billion people in need of quality healthcare. Additionally, over 1.1 billion individuals have a bank account and express interest in investing in financial services, while 880 million aspire to spend on fashion and apparel. The surge in demand for services has led to a heightened focus on personalization, growth in experiential retail, and an increasing influence of social media.
Currently, mobility dominates the market with a 30% share, followed by entertainment at 20%. However, the report projects that by 2027, fashion is expected to surpass entertainment as the second-leading sector. Emerging trends in the global consumer landscape include social commerce, immersive shopping experiences, and mobile gaming, particularly in regions like the US, Europe, APAC, and MENA.
In the Indian consumer technology sector, notable trends include a rise in over-the-top (OTT) services, increased participation of women in gaming, commerce, and social media, and a notable surge in green mobility solutions such as electric vehicle (EV) sales.
Indian consumers, dedicating over four hours daily to their smartphones, predominantly use fintech apps, capturing 70% of the usage. On-demand services are considered essential expenses in the daily lives of around 70% of consumers. Gaming, e-commerce, and healthtech are gaining traction, with online pharmacy leading the healthtech sector with a nearly 40% compound annual growth rate (CAGR).
Sudhir Sethi, Founder and Chairman of Chiratae Ventures, emphasized the consumer tech sector as both a horizontal and vertical play, identifying winners at the intersections of horizontal technology disruption and vertical domains like health, finance, education, and agriculture. Chiratae Ventures continues to invest in companies driving consumer tech innovation, including Agrostar, Healthifyme, Miko, Artium, KBCols, and Aether.
