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India's online home services market to grow at 22% to hit Rs 88 billion by FY30: report
"...India's home services industry continues to be predominantly unorganised and offline. As of FY2025, online penetration stands at less than 1 per cent of net transaction value, highlighting how deeply entrenched traditional, informal service networks still are. The online segment, though growing, is still relatively small at Rs 41-43 billion. However, it is expanding rapidly at a projected CAGR of 18-22 per cent through FY2030, as consumers increasingly seek convenience, reliability, and accountability that offline alternatives struggle to provide," the report said.
The report draws a direct parallel with the rise of quick commerce, which "reshaped everyday buying" by conditioning consumers to expect delivery in minutes. Similarly, Instant Home Services is beginning to train urban households to expect rapid fulfilment for their service needs, bridging the gap between informal domestic help and structured" onclick="showFullScrImg(this)"/>
India's online home services market is projected to expand at a compound annual growth rate (CAGR) of 18-22 per cent to reach Rs 85-88 billion by FY30, driven by a growing urban demand for convenience, reliability and speed, a report has said.
Following the widespread adoption of quick commerce, 'Instant Home Services' is emerging as the next frontier in India's digital economy, aiming to create a new habit loop for time-pressed urban consumers, says consultant firm Redseer.
India's overall home services market, valued at around Rs 5,100-5,210 billion in FY25, remains dominated by the unorganised sector.
"Instant Home Services acts like an on-demand household support system, bridging the gap between informal domestic help and structured service platforms.
"...India's home services industry continues to be predominantly unorganised and offline. As of FY2025, online penetration stands at less than 1 per cent of net transaction value, highlighting how deeply entrenched traditional, informal service networks still are. The online segment, though growing, is still relatively small at Rs 41-43 billion. However, it is expanding rapidly at a projected CAGR of 18-22 per cent through FY2030, as consumers increasingly seek convenience, reliability, and accountability that offline alternatives struggle to provide," the report said.
The report draws a direct parallel with the rise of quick commerce, which "reshaped everyday buying" by conditioning consumers to expect delivery in minutes. Similarly, Instant Home Services is beginning to train urban households to expect rapid fulfilment for their service needs, bridging the gap between informal domestic help and structured digital platforms.
Currently, India's eight largest cities account for 85-90 per cent of the online home services demand.
The growing demand is supported by four key trends: a cultural expectation for immediate gratification driven by quick commerce, an increased focus on trust and safety post-COVID, rapid urbanisation, and a consumer mindset willing to pay a premium for convenience.
While the opportunity for 'Instant Home Services' in India is substantial, its successful scaling depends on platforms navigating significant operational challenges through targeted expansion and deep consumer understanding.
The report highlights that to move from a niche offering to a mainstream service, platforms must address several critical questions. These include maintaining the economic viability of high-frequency, low-value tasks, ensuring a stable supply of service professionals during peak hours, and building trust in the presence of strong informal service networks. Another key challenge identified is the need to onboard and support a workforce that may lack digital fluency without compromising user experience or scalability.
"Instant services feel like the natural next step - born out of the same consumer mindset that's driving quick commerce and food delivery - one shaped by speed and digital convenience. But this model brings its own set of challenges. It stands to see whether platforms can solve the complexity of real-time fulfilment in high-density neighbourhoods, where reliability and availability can't be compromised. If they get this right, it won't just be a new category - it'll be a whole new habit for urban India," said Rohal Agarwal, Partner at Redseer Strategy Consultants.
Source: EconomicTimes
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