Consumption across gated communities in major Indian cities to reach $500 billion by 2026: Report

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Overall consumption across gated communities in major Indian cities is expected to grow by 2.5x and reach $500 billion by 2026, according to the latest report by homegrown internet-focused consulting firm RedSeer. The gated communities comprise just 32 percent of the population in India’s top-50 cities, but account for 45 percent of overall spend, as per the report.

The consumption is expected to increase as these communities are likely to host 24 million households by 2026, a 50 percent increase over the current 16 million households. Further, consumption via digital channels currently account for 15-20 percent of spends in gated households.

The rise in these households will be complemented by an increase in annual spending, up from the present $13,000-14,000 to $19,000-20,000 in a five-year span.

In effect, the annual spends of households in India’s gated communities will mirror those of identical households in the UK and Germany, second only to the U.S. ($25,000 a year).

Only 25 percent of the 16 million homes in gated communities are estimated to have gate management solutions. According to the report, security management app MyGate currently holds up to 82 percent market share in this space, followed by NoBrokerHood (13-15 percent) and others (3-7 percent).

Considering the socio-economic homogeneity of this segment—education, profession, disposable income, spend patterns, and pronounced need for security solutions—Indian gate management platforms have the potential to capture a total addressable market worth $35-40 billion, the report added.

“The significance of gated communities in India’s consumption story cannot be overstated. Few customer segments in the country are projected to have such high growth in overall spending over the next five years. Our research also shows that as many as 95 percent of these households across the top-50 cities shop online,” said Ujjwal Chaudhry, Partner at RedSeer Consulting.