India's online home services market to grow 22% to Rs. 8,800 crore (US$ 1 billion) by FY30: Report

India’s online home services market is projected to grow at a compound annual growth rate (CAGR) of 18-22% to reach Rs. 8,500-8,800 crore (US$ 963 million-1 billion) by FY30, according to a report by Redseer Strategy Consultants. The study notes that while the overall home services market is valued at Rs. 5,10,000-5,21,000 crore (US$ 57-59 billion) in FY25, it remains largely unorganised, with online penetration at less than 1% of net transaction value. The online segment, currently at Rs. 4,100-4,300 crore (US$ 464-487 million) is expanding rapidly as urban consumers increasingly prioritise convenience, reliability, and accountability.
The report identifies ‘Instant Home Services’ as the next big digital frontier, mirroring the success of quick commerce in shaping instant gratification habits. India’s eight largest cities account for nearly 90% of online demand, driven by post-COVID trust concerns, rapid urbanisation, and willingness to pay a premium for speed. However, platforms face significant challenges, including ensuring the economics of high-frequency, low-value tasks, maintaining a steady workforce during peak hours, and onboarding service providers with limited digital skills. If resolved, Redseer predicts this could create a mainstream consumer habit, redefining urban household support systems.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.