India's Rapidly Evolving App Development Market

India's Rapidly Evolving App Development Market

Last updated: Mar, 2022
India's Rapidly Evolving App Development Market

India has the highest mobile data consumption in the world with approximately 1.18 billion mobile connections. This huge market has given immense importance to app development in the country. These apps have a wide variety of uses ranging from entertainment such as gaming and online shows to work which includes email and other tools. Other important benefits provided by apps are faster and easier communication, online education, etc.

These apps have helped Indians significantly in multiple ways. Many apps proved a boon during the coronavirus pandemic. E.g., the Aarogya Setu app helped to track and trace infections, and alert other individuals to take precautions. Other apps helped people connect with their friends and relatives, spend leisure time, allow remote work, and helped businesses run their operations smoothly.

A study by ICRIER and Broadband India Forum found that internet contributed 5.6% to GDP in 2015-16. This figure increased to 16% of GDP in 2020, out of which 8% was contributed by apps. Another study by the World Bank found that every 10% rise in broadband penetration, leads to higher GDP growth by 1.38% in developing countries. These studies highlight the importance of internet penetration and apps in India.

Fuelled by the large and growing demand, India’s app development industry is expected to grow rapidly. According to Statista, India’s app market revenue is expected to reach US$ 1,662.4 million in 2022 and increase at a compounded annual growth rate (CAGR) of 9.2% to reach US$ 2,364.6 million in 2026. The Progressive Policy Institute (PPI) expects India to overtake the US as the country with the largest developer population by 2024. The growth of low-code / no-code app development, which requires low to no knowledge and application of coding languages, is further expected to boost growth in this market.