India set to exceed 900 million internet users by 2025, says report

With 83% of users, OTT streaming tops internet use in India: IAMAI-Kantar report

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India is set to exceed 900 million internet users by 2025, with a growing number of users coming from rural parts of the country, according to a report from the Internet and Mobile Association of India (IAMAI) and Kantar, a market research firm.

 

The report stated that 732 million people in India, accounting for almost 83 per cent of internet users, consume the internet to access over-the-top (OTT) audio and video content. Other major use cases include online communication, social media, and online gaming, according to the Internet in India Report 2024.

 

Speaking to Business Standard, Biswapriya Bhattacharjee, director of B2B and technology at Kantar, shared his expectations for the next five years: “In 2021, we had predicted 900 million users in 2025. By 2030, while we will not see significant growth in the number of users, we expect deeper internet usage, with users accessing more and more services. There will be a 15–20 per cent year-on-year growth in elite internet users,” he said.

 

Bhattacharjee defined elite users as those who access the internet for various services.

 

The report collected over 90,000 samples, covering 35 states and union territories of India, excluding Lakshadweep.

 

As per the report, users spend an average of 90 minutes daily accessing the internet. Both urban and rural users spend almost the same time online, at 94 per cent and 95 per cent respectively.

 

In terms of the gender gap, male internet users accounted for 53 per cent, while female users stood at 47 per cent.

 

The report highlighted high internet penetration in southern states such as Kerala (72 per cent), Goa (71 per cent), and Maharashtra (70 per cent) compared to northern states, including Bihar (43 per cent), Uttar Pradesh (46 per cent), and Jharkhand (50 per cent).

 

Interestingly, the report revealed an increase in the number of users accessing the internet using someone else’s mobile. One in five users accessed the internet using a shared device, with rural shared device users witnessing 24 per cent growth since 2024.

 

The report outlined key trends, mentioning that “Cord Cutters” (individuals who access content via the internet using mobile or connected TV but not linear TV) accounted for 24 per cent, with 286 million people willing to move beyond traditional devices.

 

In terms of non-traditional device adoption, urban India leads the curve with 54 per cent year-on-year (Y-o-Y) growth, while rural areas show a promising 107 per cent Y-o-Y growth.

 

Showcasing the growth of cash-on-delivery, 105 million online shoppers opted for this option. On the other hand, social media commerce witnessed a downturn.

 

In 2024, 870 million internet users (98 per cent of total users) accessed the internet in Indic languages. Among urban users, 57 per cent mentioned a preference for accessing internet content in vernacular languages.

 

One in five internet users relied on voice-based commands to access the internet, the report added.

 

With artificial intelligence (AI) creating new opportunities for growth and innovation, the perception of AI usage is relatively higher in urban India, but rural communities are quickly catching up.