India at the Forefront of a Global M&E Surge

By Pickle August 10, 2025

India’s media & entertainment market is racing ahead at 7.5% CAGR, fuelled by a digital ad boom, gaming, and OTT growth—positioning the nation as a key driver of the US $3.5 trillion global industry by 2029.

India is rapidly establishing itself as one of the fastest-growing media & entertainment (M&E) markets in the world, setting the pace for an industry on track to touch US $3.5 trillion by 2029. With an annual growth rate exceeding 7.5%, the country’s expansion is fuelled by an internet advertising boom—soaring at 15.9% annually—driven by deepening internet penetration, the rapid rollout of 5G services, and the meteoric rise of social media and short-form video content.

According to PwC’s latest Global Entertainment & Media Outlook 2025–2029, India sits alongside Indonesia and Saudi Arabia as one of the most dynamic markets worldwide. YouTube alone paid Indian creators US $2.8 billion in 2024, with another 30% jump expected this year. Data consumption is set to skyrocket, reaching nearly one million petabytes by 2027, underscoring the market’s appetite for digital experiences.

Offline Experiences Hold Steady

Despite the surging tide of digital consumption, non-digital formats still account for more than 60% of global consumer M&E spending. Live events, cinema outings, and physical media continue to command significant loyalty, showing that audiences still value shared, offline entertainment.

Advertising Takes the Lead

While subscription-based services face headwinds from market saturation and cautious household budgets, advertising has taken centre stage as the M&E sector’s primary growth engine. Globally, advertising revenues are expected to grow at a robust 6.1% compound annual rate through 2029—three times faster than consumer spending, which is forecast at just 2%.

By the end of the forecast period, advertising is projected to outpace consumer spending by US $300 billion, a shift that became evident in 2024. Digital formats are driving this transformation, with their share of ad revenues rising from 72% in 2024 to 80% in 2029. Key high-growth categories include retail advertising and social and mobile on-stream video advertising, both expanding at around 15% annually.

Connected TV epitomises the sector’s evolution. Its advertising revenue, once a mere 5.9% of broadcast TV advertising in 2020, is on track to reach US $51 billion by 2029—equal to 45% of traditional TV ad spend. This leap is being supercharged by artificial intelligence and hyper-personalisation, enabling highly targeted and efficient campaigns.

Gaming and OTT Video Power Ahead

The report flags video games as a cornerstone of modern entertainment. Global gaming revenues are projected to climb from US $223.8 billion in 2024 to nearly US $300 billion in 2029, growing at a 5.7% CAGR. Advertising within games is becoming a lucrative frontier, rising from 32.3% of sector revenue in 2024 to 38.5% in 2029.

OTT video is another bright spot, projected to grow from US $169 billion in 2024 to US $230 billion by 2029. Advertising-based video-on-demand (AVOD) will account for more than a quarter of this market, reflecting a wider consumer shift toward ad-supported streaming models.

Global Context and Regional Contrasts

While the global M&E market grew to nearly US $3 trillion in 2024 and will rise at 3.7% annually to 2029, India’s momentum stands out. In contrast, the US market is projected to grow at 3.8% (excluding connectivity), and China’s at 6.1%.

Cinema’s Local Turn

Cinema is also rebounding, with global box office revenues set to grow from US $33 billion in 2024 to US $41.5 billion by 2029. Audiences are increasingly favouring local productions over Hollywood blockbusters—the top five US studios’ global market share has fallen from more than 60% pre-pandemic to 51% in 2024. In India, this preference aligns with the success of regional cinema and locally resonant storytelling.

Technology as a Growth Catalyst

The industry’s evolution is inseparable from advances in technology. In 2024 alone, more than US $56 billion was invested in generative AI businesses, with applications ranging from advertising optimisation to automated content creation. AI-driven hyper-personalisation is expected to further accelerate digital advertising uptake, especially in connected TV and social platforms.

The Road Ahead

For India, the coming years will be defined by its ability to harness its scale, digital adoption, and creative talent to lead not just in content consumption, but in content creation and innovation. As the country’s entertainment and media footprint expands, it will not only contribute to, but also help define, the shape of the US $3.5 trillion global industry of 2029.