Internet Market Pie in India – Part 1

How large is the Internet Market in India, really? I took a stab at collecting the latest information and slicing and dicing it as best as I could, so here we go.

Internet in India

Overall market in 2008 was estimated to be 55M and active users (those who have used it at least once in a month) are estimated to be 48M. Of these, about 45M are in urban areas.

Now, that we have covered the current numbers, how about some demographics and growth rates?


Of the urban internet population about 67% come from non-top 8 metros. This was a good input to have – which means that the market is not highly concentrated and an internet marketeer looking for reach stands a good chance at it. Also, only 37% of the urban internet population is Sec A – which is again good news for reach and penetration.

With respect to age and gender: 44% of the users were males, 27% were college going students, 12% school students and the rest were females.

Broadband users not broadbased yet?

Broadband penetration in India is very low around 4.5M compared to 386M handsets. This is the most common comparison I always hear. I would say a more reasonable comparison would be broadband penetration vs. say, smartphone users or internet enabled mobile phones in India, both of which help deliver multimedia rich features to the end user and hence, increase streams of revenues for telecom service providers as well as the internet marketeers.

Growth projections

I have come across everything from a conservative 13% to a high of 40%. I prefer to go with the lower number, because if the numbers are on the higher side, I end up with better reach and bandwidth issues, which is a better situation to be in than no reach and wasted resources…based on the above growth rates, we can estimate the market to be overall at about 80M users in 2012.

In 2012, the market is predicted to be 80% urban vs.20% rural as against the current 94% urban and top 8 metros will have 30% market share vs. the current 37% market share.

How about Twitter you may ask….

Let us take a stab at the twitter market in India…the overall market is at 0.12Mn and 15-24 year olds lead the pack with 40% market share, followed closely by 24-35 year olds with 36% market share, the rest of it is lapped up by the 35+ segment. Also, men seem to be tweeting 4x more than women in India.

Sources of data: Comscore, Feb 2009, IAMAI India Internet Report 2008,

Interesting Links:


0 Responses to “Internet Market Pie in India – Part 1”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Blog Stats

  • 29,601 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 1,281 other followers


%d bloggers like this: