The PayU Insights report had stated that during 2020 because of the coronavirus pandemic and the mass restrictions laid down by the countries, the digital platforms and the digital apps had seen a huge surge in their user base which is over more than 100%. Let’s look at how the digital platforms have doubled their growth in 2020.
The PayU Insights report said that due to the Covid 19 pandemic and because of the various suggestions by experts to avoid paying physical cash as a precaution to not get in touch with the virus, the UPI payment has seen an increase in their demand.
This is because of certain places like shopping malls, supermarkets and stores implementing digital payments as the primary source of payment based on the guidelines given by the governments and considering it to be safe for the customers.
The UPI transactions have seen a growth of around 288 % in the year 2020 and the expenditures through UPI have grown up to 331 % between the years 2019 and 2020.
The OTT segment has also seen a huge rise in their demand. Due to the pandemic, people were restricted to stay in their homes and most of them would resort to a piece of entertainment. The coronavirus pandemic had led to the shutting down of offline theatres and other sources of offline entertainment avenues.
Since the OTT platforms are available for a reasonable rate and additionally serving their purpose to keep them entertained. Moreover, all the new movies which were supposed to be released in the theatres were released on the OTT platforms.
The OTT platforms have released a wide range of movies in the Indian Languages rather than concentrating on the western languages. This would be one of the major reasons for the increase in demand for the OTT platforms.
In 2020, there were a lot of local OTT platforms which came into existence and a lot of OTT series and super hit movies. Some of the OTT platforms include Zee5, Sony Liv, Voot and many more.
The OTT segment had witnessed an incredible growth in their transactions of around an increase of 144 % in the year 2020 and also an increase in their expenditure of up to 139 % in between the years 2019 and 2020.
Even the gaming sector has seen an increase in their demand. Again, the gaming sector is also considered to be part of the entertainment industry and it plays a major role in entertaining the millennials and the children.
The new and updated games, better laptops and computers with greater graphics and higher software upgrades would let the users try different games to keep them entertained. There are multiplayer games where the players can converse with each other and letting them play as a team.
These games provide a feeling of playing the games together with their friends even though it is in a virtual model. The gaming sector is the secondary source of entertainment and is also considered to be the primary source by certain people.
The gaming sector has witnessed a phenomenal increase in expenditure of up to 100 % in the year 2020 and also an increase in their average ticket size of up to 154 % in between the years 2019 and 2020.
e- commerce segments
The e-commerce segments have also seen an increase in their demand. The e-commerce sector was one of the booming industries in the country but still had to face a lot of challenges to gain the trust of Indians.
But due to the restrictions laid down because of the coronavirus pandemic and the safety concerns in going to a retail outlet the e-commerce industry has seen an increase in their demand. Another factor would be the wide range of advertisements and promotions done by the e-commerce giants such as Flipkart and Amazon on the safety precautions they undertake for the safety of their customers.
All these factors have led to a massive increase in the number of transactions for the e-commerce segments of up to 106 % in the year 2020 and an increase in expenditure of around 124 %, that is in between the first six months and the last six months of 2020.
Even the Ed-tech had seen a considerable rise in their demand. As the colleges and classes for students had been shifted to the online mode and certain colleges making it important to have an online course to be taken up by students have increased the demand for the Ed-tech platforms.
A lot of colleges have also taken up subscriptions to certain Ed-tech platforms to provide a platform for the students who would want to upskill themselves. Even the professionals have used these platforms to upskill themselves and to work on their growth.
In the year 2020, the number of transactions in the ed-tech sector had seen an increase of up to 78 % and expenditures of the Ed-tech industry have seen an increase of up to 44 %. The Ed-tech industry has seen a sharp rise in their demand as soon as the implementation of lockdown with an increase in their transactions of up to 69 %.
What is the future of gaming industry?
The gaming industry is expected to have a statistical worth of about $300 billion by 2025.
What is the future of OTT?
According to KPMG Media and Entertainment Reports, the Indian OTT market is expected to grow 45 per cent to reach USD 5 billion by the end of fiscal 2023.
How big is the EdTech market?
The global education technology (EdTech) market size was valued at USD 76.4 billion in 2019 and is expected to reach USD 89.1 billion in 2020.
In India, the major growth in the digital platforms was seen in the North-Eastern part of the Country. The countries such as Nagaland with 93 % increase, Manipur with 74 % increase, Tripura with 63 % increase, Arunachal Pradesh with 66 % increase and Meghalaya with an increase of 82%. These countries have been on top of the list.