New Delhi: India’s internet industry is expected to grow and could reach a value of $5 trillion by 2030, market intelligence firm Redseer Strategy Consultants predicts.
The country has the second largest internet user base in the world and is home to 780 million internet users, Redseer said in an article titled ‘Looking Back at India’s Internet Economy in 2022 ‘. It added that most of the user base will continue to come from tier-2 cities.
“Strong growth in digital consumption and increased digital penetration in tier-2+ cities are the main growth drivers responsible for the development of India’s digital advertising ecosystem. At an increasing pace with consumers from tier-2+ cities adopting low-cost video commerce, India is likely to witness a huge surge in digital ad investments instead of driving sales,” it said.
The report, published on January 2, highlights that ‘digital’ will continue to play a key role. It says that Internet gross merchandise value (GMV) in India will grow to about $1 trillion by 2030, equivalent to $5 trillion in public and private market cap.
GMV is used interchangeably with “gross merchandise volume”, and is defined as the total amount of revenue generated in a given time period.
The average Indian spends about 7.3 hours per day on their smartphone, one of the highest in the world. “There is a new trend in content consumption where time spent on user-generated content is 2X that of platform-generated content,” it said.
In fact, another report by the Internet and Mobile Association of India, published in July 2022, said that there will be 900 million internet users in India by 2025.
The reports come against the backdrop of a battle between two of Asia’s richest men – Gautam Adani and Mukesh Ambani – for India’s digital future. Reliance Jio Infocomm Limited, owned by Ambani, has the highest market share of internet service providers in India as of March 2022, statistician reported.
Adani Data Network was granted license for telecom services last year, Mint reported. Adani Group has also entered the telecom sector by buying 5G spectrum worth Rs 212 crore in August 2022 auctions.
A NASSCOM report says that 5G mobile subscriptions are expected to grow by a compound annual growth rate which is more than 50% and is likely to generate a $1.5 trillion potential revenue by 2030. It added that 5G could increase 2% of India’s gross domestic product by 2030.