Indian consumer tech market is expected to reach $ 300 billion by 2027 growing at a CAGR of 25 per cent, with mobility and fashion being the dominant sectors, according to a report by Chiratae Ventures.
Consumer tech in India has a total addressable market of $100 billion, with mobility contributing $36 billion, entertainment and media contributing $25 billion and fashion contributing $18 billion, being the most dominant sectors.
“The sector’s 25 per cent CAGR can be attributed to pivotal macroeconomic factors and sector-specific dynamics. The industry has benefited from macroeconomic conditions, including an upswing in GDP per capita, increased disposable income, widespread internet penetration, growing trust in online channels for various commerce and fintech transactions, and democratising access through digital public infrastructure,” said Anoop N Menon, Principal – Investments, Chiratae Ventures.
Additionally, sectoral tailwinds stemming from the burgeoning middle class, the influential role of social media, the emergence of niche segments such as Gen Z and women with distinct preferences and purchasing power, along with a shift towards premiumisation among the upper echelons of the income pyramid, collectively provide the impetus for exponential growth within a conducive environment, he added.
The report titled “Cracking the Code: Unveiling India’s Consumer Landscape,” also noted that expanding digital public infrastructure has led to, 500 million Indians, or 35 per cent of the population, aspiring for entertainment and gaming services in their daily lives, additionally, 220 million Indians, or 15 per cent of the population, aspiring to spend on-demand services.
Transformation in the Indian consumer tech market on the back of growing digital public infrastructure, rising OTT integration, growing contribution of women in gaming and social media as well as higher electric vehicle sales, according to the report.
The report also highlights several key trends as a strategic playbook for the coming 3-5 years - population-scale solutions, product innovation, vertical integration, omnichannel presence and internationalisation. “Sectoral trends include a focus on personalisation, premiumisation, a rise in experiential retail, the growing influence of women as a consumer segment, particularly in areas like gaming and social media and the burgeoning market for OTT/Entertainment segments,” Menon said.
Additionally, the rise of electric vehicles in the mobility sector is a significant trend. These trends, outlined in the report, are expected to have nuanced impacts on sub-sectors and themes, ultimately shaping the sector’s trajectory over the next 3-5 years. The strategic emphasis on the identified pillars and recognising these evolving trends underlines a comprehensive approach to navigating and capitalising on the sector’s future landscape, he further said.