India Home Services Boom: Apps Drive 60% Growth to $95B by 2030

BENGALURU, India – The Indian home services market is experiencing rapid growth, fueled by increasing urbanization and a shift towards busier lifestyles. App-based solutions, particularly in housekeeping, are becoming increasingly prevalent, contributing to a sector projected to reach ₹8.58 trillion (approximately $95 billion USD) by 2030.

The overall Indian home services market is currently estimated at around $60 billion in fiscal year 2025, representing a traditionally unorganized industry undergoing significant digital transformation. Online platforms are gaining traction, offering a more streamlined and convenient customer experience.

Growth Driven by Digital Platforms and Economic Trends

The projected growth of the online on-demand home services market is particularly robust. Analysts forecast a compound annual growth rate (CAGR) of 22.4% between 2023 and 2030, with a projected revenue of US$1,092.5 million by 2030. This expansion is occurring alongside broader economic trends in India.

India is currently the fastest-growing major economy globally, having averaged 5.5% gross domestic product (GDP) growth over the past decade. This growth is being propelled by three key megatrends: global offshoring, digitalization, and the energy transition. These factors are setting the stage for unprecedented economic expansion.

India’s Expanding Economic Footprint

Morgan Stanley anticipates that India will surpass Japan and Germany to become the world’s third-largest economy by 2027. The firm also projects that India’s stock market will become the third-largest globally by the end of the decade. India’s influence in the global economic order is increasing.

India’s GDP is expected to more than double from its current $3.5 trillion to surpass $7.5 trillion by 2031. The country’s share of global exports is also projected to double over the same period. The Bombay Stock Exchange could potentially deliver annual growth of 11%, reaching a market capitalization of $10 trillion in the coming decade.

The Gig and Platform Economy

The growth in home services is closely linked to the broader expansion of India’s gig and platform economy. A recent study by NITI Aayog, India’s policy think tank, examined the significance of this sector to the economy and employment generation. The study aimed to identify measures to encourage employment within the sector and to develop initiatives for social security for gig workers.

Consumer Spending and Future Trends

The anticipated economic growth is expected to spur a boom in consumer spending. Analysts suggest that India will be one of only three economies globally capable of generating more than $400 billion in annual economic output growth from 2023 onwards, with this figure rising to over $500 billion after 2028. This increased economic output is expected to drive demand for a wider range of home services.

The increasing demand for convenience and the rise of dual-income households are key drivers of the home services market. The digital transformation of the sector is making it easier for consumers to access and utilize these services. For example, the Insta Help app recorded 1.61 million orders during the October-December quarter, demonstrating the growing popularity of app-based solutions.

Implications for Investors and Businesses

The rapid growth of the Indian economy and the home services market present significant opportunities for investors and companies. The megatrends driving this growth – global offshoring, digitalization, and energy transition – are creating a favorable environment for investment and expansion. The potential for increased manufacturing, improved credit availability, and the creation of new businesses are all contributing factors.

As Chetan Ahya, Chief Asia Economist at Morgan Stanley, stated, “India will be one of only three economies in the world that can generate more than $400 billion annual economic output growth from 2023 onward.” This highlights the importance of India as a key growth market in the global economy.

The expansion of the home services market is not only a reflection of India’s economic growth but also a response to changing consumer preferences and lifestyles. The increasing adoption of digital platforms is making it easier for consumers to access a wider range of services, contributing to the overall growth of the sector.