Driving the Future:

Innovations and Strategies in India's

App Services Sector


Reshaping gaming industry in Japan


Driving the Future: Innovations and Strategies in India's App Services Sector

India’s digital landscape is experiencing rapid growth, solidifying its position as the world's fourth-largest exporter of digitally delivered services. In 2023, digital services exports reached an impressive $257 billion, marking a 17% increase from the previous year. This surge not only fuels India's national economy but also propels revolutionary changes within the digital industry. India continues to lead in the adoption of transformative technologies like Artificial Intelligence (AI) and cloud computing, bolstered by high internet and smartphone penetration rates, digitisation initiatives, and a flourishing startup ecosystem.


Overview of The App Market

The global mobile app development industry is witnessing significant growth, projected to reach USD 366.93 billion by 2030. The Indian app market, vibrant and dynamic, generated approximately USD 3.3 billion in revenue in 2023 with 26.4 billion app downloads. This growth is underpinned by the increasing rate of smartphone usage, with 48.1% of India's 1.4 billion population actively using smartphones in 2023, positioning the country as the second-largest smartphone usage market globally, in terms of active users. Furthermore, Indian users dedicated 1.19 trillion hours to mobile apps in 2023, a 13.2% increase from the previous year.


Trends in Specific Segments

1. Growth of Digital Payments in India
The expansion of digital payment apps is driven by several key factors. Initiatives such as Digital India, along with innovative solutions like the Unified Payments Interface (UPI), enable users to make instant and digital payments via their smartphones. In 2023, UPI facilitated an impressive 100 billion transactions. The widespread adoption of smartphones has democratised access to mobile payment solutions across varied demographic segments, significantly enhancing financial inclusion with a rate of 80%. Users are able to pay everyone— from vegetable vendors to doctors. To put things in perspective, as of November 2023, there were 300 million UPI users in India and 500 million merchants who are using UPI to accept payments for their businesses. UPI also has the ability to integrate with India’s leading digital payment apps and solutions such as Phonepe, Paytm, Google Pay and many more third party apps (access the complete list here).

Moreover, the shift in consumer behaviour, particularly during and post-COVID-19, coupled with the expansion of the e-commerce sector, has bolstered the preference for digital payments over traditional cash transactions. This rapid rise, and the convenience of digital payments, both underscore a lucrative opportunity for investors, businesses, and multinational companies considering entry into the Indian market.

2. Expansion of Delivery Services in India
The delivery services sector, especially for food and groceries, has seen substantial growth, driven by the convenience these services offer. Prominent apps like Zomato and Swiggy have not only reached 'Unicorn' status but have also set the standard in the market. The urban lifestyle, ease of payments, and the effects of the pandemic have further increased the demand for such services. Moreover, AI and machine learning (ML) are optimising these services by personalising marketing efforts, streamlining customer support through AI chatbots, and enhancing operational efficiency with predictive order and route optimisation. These technological integrations are improving customer experiences, enhancing resource management, and fostering loyalty and operational excellence. All good for business.


Business Strategies to Enter the Market

  1. Partnerships: Establishing strategic partnerships with local or established companies can extend reach and enhance operational efficiency. Furthermore, this strategy can expand service capabilities and market presence, proving beneficial for all parties involved.
  2. Diversification of Service Offerings: Expanding the range of services can help capture a broader audience. For instance, a payment app can also integrate financial services such as insurance and investment options to enhance user engagement.
  3. Technology Adoption: Adopting the latest technological innovations such as AI for personalised user experiences or blockchain for heightened security can distinguish your services in a highly competitive market.
  4. Market research: Conducting market research by leveraging tools such as customised surveys or DIY surveys can help businesses quickly understand the unique consumer behaviours, trends and preferences in a market. These data and insights can be critical in planning, decision making and tailoring app features and services to align with customer needs and market trends.



As India's app services sector continues to thrive, strategic engagement and continued innovation are critical. For businesses aiming to enter or expand within this dynamic market, selecting the right market entry strategy is essential. Furthermore, conducting thorough market research will enable businesses to tailor their strategies effectively, creating an alignment with consumer preferences and market trends, setting the stage for sustained growth and competitive advantage in this rapidly evolving digital landscape.

For businesses aiming to work in India’s complex app market, market research tools like DIY surveys by GMO Research & AI are invaluable, as insights obtained from such surveys can help companies make better informed strategic decisions.


India App Market India app market trends App Development India Digital payment apps in India Delivery apps in India Business strategies for entering the Indian app market