Indian short-form apps are expected to double their monthly active user base to 600 million (67 percent of all smartphone users) by 2025 and have a monetisation opportunity of $19 billion by 2030, a new report has shown.
Indians now spend close to 156 minutes per day viewing entertainment content on their smartphones. In fact, on average, an Indian user consumes close to 38 minutes of short-form content each day.
According to the report by Bengaluru-based Redseer Strategy Consultants, the next wave of internet growth is likely to come from tier 2 cities and beyond, regions that have a higher propensity to view short form videos.
Additionally, rapidly improving the quality of content and algorithms for Indian short-form apps is another significant driver of growth.
The short-form app market is dominated by Moj, Josh, Roposo, MX TakaTak and Chingari, among others.
"Indian short-form apps are witnessing phenomenal growth as compared to other established platforms, this can be attributed to their low decision fatigue, language localisation, recommendations, genre variety and local creator influence," said Mohit Rana, a partner at Redseer.
The Indian apps are now poised to start monetising their large and engaged user base through advertising, video commerce and to a lesser extent, gifting.
The report said that by 2030, short-form can take close to 10-20 percent of the overall digital ad pie.
"Further, video-led commerce in short-form apps is another big opportunity, and China is a testimony to this given that in the last 4 years alone, video-led commerce in China grew 100 times," the report mentioned.