Indian digital businesses can achieve exports of $39 B by 2022, says report

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The Asia-Pacific region with countries like China, Malaysia, and Indonesia could be key target markets for Indian digital companies

Digital businesses in India has the potential to achieve exports of $39 billion by 2022 from the level of $16 billion reached in 2017, says a joint report by Google India and KPMG.

The report titled – ‘Indian Brands Going Global: A $39 billion opportunity’ – outlines that travel, media and entertainment, SaaS, Consumer brands and real estate are the key verticals with high potential international opportunities.

The report suggests that with the rising digital influence on consumers globally and growing cross-border eCommerce – digital is fast becoming the preferred channel to reach the global audience. The report outlines that Asia-Pacific is one of the most attractive regions for expansion by Indian players – with China, Malaysia, and Indonesia as key target countries. Digitally mature geographies such as the US and the UK are other lucrative geographies, which can be tapped through digital channels.

Shalini Girish, Director – Marketing Solutions, Google India says, “Rising global connectivity is opening up new opportunities for businesses to expand internationally. This growth is led by emerging economies, driven by the adoption of mobile phones, and this combination is driving a very rapidly growing cross-border mobile eCommerce.”

Sreedhar Prasad, Partner and Head, Consumer Markets & Internet Business Advisory, KPMG India says, “Geographically, the share of developing economies in global trade is on the rise. As per the report, developing economies now account for ~41 percent of global merchandise trade and ~36 percent of global trade of commercial services.”

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Online travel

In terms of the export potential for the verticals, the report says that for the travel segment, Asia-Pacific and the Middle East are the broad focus markets, with UAE and Indonesia as very high potential markets for Indian online travel agency.

The industry is predicted to grow at a CAGR of 18 percent to $3.1 billion by 2022 from $1.37 billion in 2017, driven by online sales opportunity for Indian travel service providers to international travelers traveling into India. International traveler inflow into India is set to grow to 12.8 million by 2022, and the accommodation spends by international tourists in India is expected to grow by approximately 14 percent.

Media and entertainment

In the media and entertainment segment, NRI markets like the US, the UK, UAE and mobile first markets like Brazil are extremely lucrative for video consumption. Music-growing markets like South East Asia, Malaysia and Philippines offer new opportunities for the players. The industry is set to grow at a CAGR of 37 percent to $3.46 billion by 2022 from a $0.71 billion in 2017.

SaaS

For the SaaS segment, growing adoption by SMB customers in emerging markets offers new opportunities for Indian SaaS players. The global SMB SaaS segment is expected to grow at a CAGR of 36 percent over 2017-2022. Indian SaaS players’ revenue is expected to grow from $1.1 billion in 2017, to $4.4 billion by 2022 at a CAGR of 32 percent.

Real estate

The Indian real estate market offers superior long-term returns, and the opportunity for realtors from the NRI customers is expected to grow from $11.5 billion in 2017 to $25.7 billion in 2022, at a CAGR of 17 percent. Indian real estate developers could tap into the NRI and HNI customer base by leveraging technology and digital platforms, the report says.

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Consumer brands

In the consumer brands segment, Asia-Pacific is the focus region. It is the fastest-growing region in apparel and consumer durables. China, Vietnam, and Indonesia are the rapidly growing jewelry markets. Consumer brand market in select retail verticals is expected to grow from $1.5 billion to $2.64 billion by 2022 at CAGR of 12 percent.

Source: Yourstory

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