India's mobile app market is experiencing rapid growth, caused by a combination of factors including rising smartphone adoption, a digitally connected youth population, affordable internet, and a rapidly growing e-commerce sector.

With 658 million smartphone users, valued at USD 3.0 Bn, India is the world’s second-largest smartphone market behind China. As a result, the opportunities for app developers and businesses are immense. Here’s a closer look at the key factors shaping the growth of this industry.

Enhancing Smartphone Penetration

• In 2024, India is home to one of the world's largest and fastest-growing smartphone user bases thanks to government initiatives such as the Digital India initiative and others.
• In 2017, India surpassed the United States in the number of smartphone users; by 2022, there were 1.2 billion active mobile phone users in India.
• Additionally, this growth has been powered by the availability of affordable smartphones from both domestic and international brands, enabling wider access across the population.
• As smartphones and reliable internet connectivity become more accessible, the potential market for mobile applications continues to grow significantly.
• The Indian app market has experienced substantial growth across various sectors in 2022-2023, with millions of users engaging in diverse applications.
• The gaming sector leads the market with 7.49 billion users, with 7.37 Bn users using android and 0.12 utilizing iOS followed by utilities and Shopping which holds 1.57 and 1.13 billion users, respectively.

Young Mindset- Dominance of 15-34 Aged Group

• India's youth population aged between 15-34 is a significant growth driver for the mobile app market. With 600 million people aged between 18 -35 years, this digitally adept demographic is highly engaged with online platforms.
• This group increases demand for social media, gaming, streaming apps, and educational platforms due to various reasons such as educational needs, social media influence, accessibility of smartphone phones and User-Centric Features.
• As the youth population continues to grow, the potential user base for mobile applications will expand, creating opportunities for innovative apps catering to this audience.

Affordable Internet Accessibility

• Affordable mobile data plans and the expansion of 4G and 5G networks have revolutionized internet accessibility in India.
• At the start of 2024, there were 159 million 5G subscribers, complementing the 773 million active 4G users recorded in 2022.
• Providers like Reliance Jio have played a crucial role in making high-speed internet available at low costs, allowing users from urban centres and remote areas to access mobile apps seamlessly.

Growing E-commerce Industry

• The growth of e-commerce has significantly boosted the demand for mobile shopping apps in India. In 2023, India's Internet users stand at 690 million which are projected to reach 900 million by 2025.
• Additionally, between 2018-2021, the number of online shoppers increased by 125 million as the demand for on-the-go shopping is rising rapidly among consumers.
• Platforms supported by initiatives like the Unified Payments Interface (UPI) have made transactions secure and seamless, building trust among users. This trend not only supports the e-commerce sector but also enhances the potential for payment and financial apps.

Booming E-Learning and EdTech Sector

• India’s EdTech market is witnessing remarkable growth, compelled by increasing demand for online education and skill-building platforms. In 2023, there are approximately 4400 ed-tech apps available in India.
• Apps that offer gamified learning experiences and career-oriented content are gaining traction among students and professionals. With an expanding youth population and the growing importance of upskilling, this segment is set to remain a key growth driver.

India's mobile app market is witnessing remarkable growth, fuelled by key factors such as increasing smartphone penetration, a digitally connected and youthful demographic, affordable internet accessibility, and the rapid expansion of the e-commerce and EdTech sectors. With 690 million smartphone users, an increasing youth population, affordable high-speed internet, and an evolving digital ecosystem, India offers immense opportunities for app developers and businesses. These transformative factors present a well-defined pathway for innovation and investment, positioning India’s app market as one of the most dynamic and promising on the global stage.