India – the lucrative App market!
Flurry Analytics’ release of its ‘State of the App Nation in India’ report revives the conversation around Indian consumer’s appetite for apps. As an Indian, I can explicitly say that we as a nation are enthusiastic and experimental, when it comes to apps. We have always been open about social networking, gaming and entertainment apps. As for payments apps, lot of people had their reservations, but demonetisation was the required nudge to bring even the most reluctant to transact online.
As per Flurry Analytics, India app usage growth was 4X that of global growth (India – 43%; global – 11%). That’s a believable figure. App market is witnessing maturity in the western markets, real growth is meant to be driven by Asian countries, particularly India. With the internet traversing the nook and corners of the country (currently 375+ million Internet users), and the rising smartphone penetration (which is still less than 30%), one can imagine the kind of growth that is expected to come.
As per App Annie, in 2016, India had the highest total time spent on Android apps, and the highest downloads from Google Play.
The country is on a growth path – India’s app revenue is expected to witness a 67% CAGR 2015-2020 – highest globally. While messaging and social apps continue to remain the most popular and engaging, higher growths are likely to come from music, media, and entertainment (witnessed 188% growth in usage in 2016) due to the advent of the likes of Hotstar, Amazon Prime, Netflix, Saavn, and many more. Well, I hardly watch TV, so I can totally vouch for this! The next fastest growing segment as rightly highlighted by Flurry Analytics are the business and finance apps (witnessed 188% growth in usage in 2016).
As for Internet and Telecom, Jio has already revolutionised the data space with offers and freebies. This follows Vodafone-Idea merger, and Airtel acquiring Tikona’s 4G business. This along with government’s NOFN, free wifis, and the emerging concepts of Digital Village will take Internet to the hinterlands of India, further triggering increased usage of apps.
App Economy is briefly touched upon in NASSCOM’s flagship report – ‘The IT-BPM Sector in India: Strategic Review 2017’. Refer to the attached file, and to download the full report, click here.
Next article to follow – Internet Economy in India!