Top 5 Fastest Growing Sectors During the Coronavirus Pandemic

Top 5 Fastest Growing Sectors During the Coronavirus Pandemic

Some of the world’s most successful startups like Uber, Slack, Airbnb, Square, WhatsApp and Instagram were founded between 2008 and 2010, the period is known as the great recession.

While the coronavirus pandemic is wreaking havoc on our lives and the economy, it also presents business opportunities for entrepreneurs who are willing to take the leap.

Let’s take a look at the top 5 Fastest Growing Sectors During the Coronavirus Pandemic

Top 5 Growing Industries in Pandemic

  1. EdTech
  2. Video Conferencing
  3. Online Grocery Delivery
  4. OTT/Video Streaming
  5. Gaming

#1. Edtech

India has one of the largest education ecosystems in the world with 1.5 million schools and an estimated 280 million students by 2021. According to 2017 KPMG and Google study, India’s online education market will be worth $2 billion by 2021. However, this lockdown caused by COVID-19 has forced schools and colleges to shut down indefinitely, leaving millions of students unable to access education.

Indian edtech startups have taken this opportunity to offer their platforms free of charge to schools and students, showing the potential of online education in changing India’s education forever. Take the example of India’s only edtech unicorn Byju’s which has over 50 million registered users on its platform and 13.5 million of them started using their platform during the month of March and April alone.

#2. Video Conferencing

One of the biggest company that has taken the world by storm during the lockdown is none other than Zoom. This lockdown provided a perfect opportunity for Zoom to become the go-to video conferencing app for every major tech giant like Deloitte, Uber, Slack, Zendesk and Autodesk. In December 2019, Zoom had 10 million daily active users. The company has witnessed a massive 30x growth within the last few months and their daily active users now stand at over 300 million. This opportunity has been seized by other video conferencing companies as well, like Google and Microsoft.

An Indian startup that has been making the rounds lately with its popular web-based online event platform is Airmeet. This Bengaluru-based startup has taken the opportunity to enable the companies to host live events through its platform as all major events and conferences are now being hosted online.

#3. Online Grocery Delivery

Online grocery delivery has been one of the toughest markets to crack for Indian startups the low-profit margins and high churn rates. At the moment online food and grocery retail constitute merely 0.2% of the overall retail market and it is expected to touch 1.2% by the year 2023. While 1.2% doesn’t sound much, it means that this industry could be worth $10.5 billion by 2023.

Like any other industry on the list, online grocery delivery startups have witnessed exponential growth during the lockdown. Take the example of India’s grocery delivery unicorn BigBasket which was delivering about 1,50,000 delivery every day is now making close to 3,00,000 deliveries every day.

The growth has been so monumental that Amazon and Flipkart have also ramped up their grocery delivery business. However, all these startups combined have been unable to keep up with the ever-rising demand. According to industry estimates, the country’s online grocery sale will be worth $3 billion this year, a sharp 73% jump from last year’s $1.7 billion.

#4. OTT/Video Streaming

According to an ASSOCHAM-PwC report, India’s OTT video streaming market is expected to grow at a CAGR of 22% during the period of 2017-2022 to reach a market size of $823 million by 2022.

While OTT is still in the nascent stages in India, with the lockdown, cinema halls all around the country have been closed and more and more people are spending time watching content on video streaming platforms like Netflix and Amazon Prime Video. This has given a boost to the OTT platforms in India and around the world.

#5. Gaming

According to a Google and KPMG report, India’s online gaming market is estimated to reach $1 billion by 2021 from $290 million in 2017. However, with people spending more and more time on their mobile phones, these numbers could be reached much faster than previously anticipated.

Paytm First Games witnessed a massive 200% growth in its user base in the month of March gaining a staggering 75,000 users every month. However, Ludo King, a game by Gametion Technologies seems to be a clear winner in the online gaming market. This game had merely 15 million daily active users before the lockdown began but at its peak, it had more than 250 million users playing the game daily. While the number has gone down to 40 million now, it is still considerably higher.

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