Indian E&M Industry May Grow At CAGR Of 8.3% Outpacing The Global Rate Of 4.6%

The economic challenges and geopolitical tensions notwithstanding, global E&M revenues grew 5.5 per cent year-on-year, from Rs. 13,891,000 crore in 2022 to Rs. 17,359,000 crore in 2023. Presently, the US leads the global E&M market by revenue, followed by China while India is at ninth position. The Indian E&M industry is projected to grow at CAGR of 8.3 per cent to hit Rs. 3,65,000 crore outpacing the global rate of 4.6 per cent. That’s not all.

This shift towards cord-cutting is expected to accelerate. Traditional TV advertising will grow at a 4.2 per cent CAGR between 2023 and 2028, while global revenues are set to drop by nearly 1.6 per cent. It indicates that India is poised to become the fourth-largest TV advertising market by 2026. If a recent global study by PwC is anything to go by, India’s entertainment & media sector is on the cusp of a major transformation with key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI shaping the future of the industry. The country is predicted to see one of the highest growth rates in the next five years, thanks to improved connectivity, rising advertising revenues and favourable government policies around FDI.

The unprecedented growth in this regard can also be attributed to the large millennial and Gen-Z population base of over 91 crore that has access to the world’s cheapest data costs. Interestingly, India has 80 crore broadband subscriptions, 55 crore smartphone users and 78 crore internet users. In fact, Indians are spending 78 per cent of their time on mobile phone apps related to E&M. In a bid to leverage the strong growth trajectory in E&M sector, the Centre is to host the inaugural WAVES summit, boosting its E&M sector through stakeholder collaboration and innovation. These growth factors are understandably driven by actual growth and projected growth in the advertising market.

With growing consumption and gross domestic product (GDP) growth, the advertising market is projected to grow at a 9.4 per cent CAGR from Rs. 1,01,000 crore in 2023 to Rs. 1,58,000 crore in 2028. Most of this growth will come from digital front (internet advertising), which is expected to grow at a 15.6 per cent CAGR, rising from Rs. 41,000 crore in 2023 to Rs, 85,000 crore in 2028. Internet advertising’s year-on-year growth, which was 26 per cent in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2 per cent in 2028.

Quite significantly, Internet advertising emerged as the fastest-growing market in Asia-Pacific and the second globally, with a projected 15.6 per cent CAGR (2023–2028). Companies can prioritise regulatory compliance and leverage data analytics to enhance trust and implement targeted advertising strategies. OTT platforms in India, the world’s fastest-growing, saw a 20.9 per cent rise in 2023, reaching Rs. 17,496 crore ($2.1 billion), and are projected to double by 2028 (14.9 per cent CAGR).

Focusing on advertising-supported tiers, market consolidation and regional narratives can boost engagement. There is no doubt, therefore, that these rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape and prosper.