Beyond AI hype, India scales compute and semiconductors, opening up telco-led super apps, GenAI video formats and a fast-rising concert economy: Deloitte’s TMT Predictions 2026

• Live entertainment is projected to become a major profit pool, with venue expansion in 2,000–10,000-seat “middle-layer” arenas potentially driving a ~5–10× increase in concerts outside major cities by 2030.
• India’s data centre capacity is projected to scale from ~1.5 GW in 2025 to ~10 GW by 2030.
• India’s semiconductor market is projected to reach ~US$120 billion by 2030 and ~US$300 billion by 2035 (at ~20 percent CAGR), alongside ~US$50 billion in additional capital investment over the next five years.
• Telco-led commerce could generate ~INR0.33 lakh crore per year in commission revenue by 2030, based on onboarding ~10 million MSME shops with ~INR3,000 crore/day of gross merchandise value.
• India’s virtual influencer market could grow by an additional 15–20 percent over current projections, reaching ~US$1.9–2.0 billion by 2030, if brand engagement strengthens.

National, 18 March 2026: India’s digital ecosystem is entering its next phase of scale, where AI compute demand is translating into real-world build-outs across data centres and semiconductors, while telecom operators evolve from connectivity providers into daily-life platforms, according to Deloitte’s Technology, Media and Telecommunications (TMT) Predictions 2026.

Growth is increasingly defined by infrastructure readiness, ecosystem collaborations and new monetisation models. This shift is visible in hyperscale capacity build-outs amid power and land constraints, rapid expansion of the semiconductor value chain, AI-led super apps that embed telecom into daily routines and creator-led media formats that are reshaping engagement and live entertainment economics.

Technology sector predictions

Deloitte predicts that India’s technology infrastructure will be defined by rising digital demand and the physical build-out required to support AI-led compute, cloud adoption and data localisation.

Two themes will shape the next chapter: a rapid expansion of data centre capacity to serve AI and cloud workloads and a parallel acceleration of the domestic semiconductor ecosystem to reduce strategic import dependence and capture more value across the electronics stack.

On data centres, Deloitte (in a joint assessment with NITI Aayog) estimates that India’s installed capacity will scale from ~1.5 GW in 2025 to ~10 GW by 2030. Deloitte India estimates facility build costs (excluding IT hardware) at ~US$5.5–8.0 million per MW, reinforcing India’s structural competitiveness for new capacity. This expansion will, however, intensify demand for land, power and cooling as AI workloads increase rack densities and raise infrastructure intensity per MW of IT load.

Deloitte predicts that the sector’s electricity demand will rise to ~57 TWh by FY2030, increasing data centres’ share of global electricity consumption from ~0.8 percent to ~2.5–3 percent. As utilisation remains high and reliability requirements are stringent, the next growth phase will hinge on power readiness and grid deliverability and not just generation. Efficiency becomes a material lever. Deloitte India cites India’s average Power Usage Effectiveness (PUE) at ~1.9 versus ~1.3 for best-in-class designs, indicating meaningful headroom to reduce unit energy draw through liquid-ready architectures, higher-efficiency power trains and continuous metering and controls.

Securing land and approvals will be crucial. Deloitte predicts that aggregate data centre land requirements will expand by an additional 45–50 million sq. ft. by 2030 (up from ~13 million sq. ft. in 2023), making faster clearances and coordinated utility provisioning critical to predictable commissioning timelines.

In parallel, Deloitte analysis projects that India’s semiconductor market will reach ~US$120 billion by 2030 and ~US$300 billion by 2035 (at ~20 percent CAGR), driven by electronics manufacturing, automotive electrification and AI/data centre demand. Over the next five years, the semiconductor industry in India is expected to attract an additional US$50 billion in capital investment. Of this amount, ~US$30–35 billion will be directed towards setting up fab and Outsourced Semiconductor Assembly and Test (OSAT) operations facilities, and ~US$15–20 billion will support the value chain, including input materials, gases and chemicals and manufacturing equipment. This underscores the scale of the upstream ecosystem build required to sustain momentum.

Telecom sector predictions

Deloitte predicts that India’s telecom industry is moving beyond competing on cheaper gigabytes to becoming a daily-life platform that solves recurring consumer needs. With network scale largely established and data affordability already among the strongest globally, the next wave of value creation is expected to come from service-led ecosystems that deepen engagement, build loyalty and create new monetisation levers without reigniting tariff wars.

This shift is expected to be most visible outside metros, where digital adoption is high but spending remains cautious. Deloitte predicts that telecom operators will increasingly integrate practical, everyday services into their platforms. These include skill development and digital literacy, healthcare access through local clinics and diagnostic collaborations, mobility enablement (ticketing, route updates and alerts) and affordable meal solutions through tie-ups with local providers. The strategic intent is to make telecom apps less episodic (used only to check balances) and more habitual (used to manage daily routines), creating a stronger foundation for incremental monetisation.

AI is the key enabler of this transition. Deloitte predicts that AI will unify these services into a single, personalised super app experience that learns from user behaviour, language, location and routines to deliver relevant nudges, whether for learning modules, health reminders, commute guidance or tailored upgrades. This model supports low-friction monetisation through small, recurring premiums layered over time, rather than large upfront fees or blunt tariff hikes.

Deloitte predicts that Indian telecom operators will move beyond connectivity into AI-enabled “daily-life” platforms, using personalised services, Micro, Small and Medium Enterprises (MSME) commerce and retail media collaborations to lift engagement and open up new monetisation streams. As more users adopt low-priced add-on utilities and telco apps become more habitual, the industry could see a steady increase in Average Revenue Per User (ARPU) and overall revenues by 2030, driven as much by ecosystem-led services and advertising as by traditional plans.

Media and entertainment sector predictions: A whole new opportunity through the creators economy

Deloitte predicts that India’s media and entertainment ecosystem growth will be shaped by three forces working together: AI-enabled content creation at scale, the rapid formalisation of creator-led formats and the emergence of live experiences as a national monetisation engine. As attention fragments across platforms and screens, value is expected to shift from pure reach to deeper engagement, richer formats and repeatable revenue models across digital, live and commerce-led extensions.

GenAI is accelerating this transition by reducing the cost and time required to produce high-quality video, enabling creators and brands to generate more audience-centric content and iterate faster across languages and formats. Deloitte predicts that as virtual influencers become more capable and brand engagement deepens, India’s virtual influencer market could rise by an additional 15–20 percent, reaching as high as US$1.9–2 billion by 2030. At the same time, the growing volume of AI-assisted and synthetic content will increase the premium on trust, making transparency mechanisms and platform governance central to sustaining audience confidence and advertiser interest.

Creator-led short-form entertainment is also evolving beyond casual scroll content into structured, monetisable formats. Micro-dramas (short, episodic series designed for mobile-first consumption) are emerging as a cost-efficient storytelling layer that can scale quickly and attract both creators and brands. Deloitte insights indicate that typical production costs range from INR25,000–50,000 per episode for two-to-five-minute formats without prominent stars, translating to INR2.5–5 lakh for a 10-episode season. Even premium productions featuring top influencers can remain within the INR7.5–10 lakh range for a 10-episode season. Deloitte insights also note that at least 15 micro-drama apps are active in India today, with roughly 30–40 percent launched by existing platform players, and current subscription pricing clustered about INR299–499 per quarter, signalling an early market that is still finding the right balance of scale, pricing and retention.

Long-form, conversation-led formats are expanding the creator economy in parallel. Video podcasts are being designed as multi-surface franchises, discovered through short clips on social platforms, consumed in full on mobile and suited to large-screen viewing on Connected TV (CTV). Deloitte’s view is that monetisation will skew towards advertising, sponsorships, branded content, community access and live extensions, with subscription-only models likely to take longer to scale in a price-sensitive market.

Live entertainment: A high-momentum profit pool

Live entertainment is emerging as the new high-momentum profit pool. Deloitte predicts that the most significant venue build-out will occur in the “middle layer” of 2,000–10,000-seat venues as investment decentralises beyond metros. Deloitte analysis suggests that this shift could drive a ~5–10× increase in concerts outside major cities by 2030, expanding the addressable market for artists, platforms, brands and promoters, while turning live entertainment-associated Intellectual Property (IP) into a scalable engine amplified by digital distribution.