India Demat Account Market Overview

The India Demat Account market is estimated to reach USD 95.66 million by the end of 2030 by registering a 17.42% CAGR during the forecast period of 2022-2030, and it was valued at USD 28.49 million in 2022. It is attributed to the rising working-class population and technological advancement, predicted to drive the Indian market significantly. The Demat Account Market has been expanding faster with considerable growth rates recently. As of June 30, the overall number of CDSL and rival National Securities Depository (NSDL) Demat accounts in India has climbed to 6 crores, up from 4.02 crore in February 2020. The study is intended to provide crucial information about the market and industry for Demat Account. The market for Demat accounts has been split into types & regions for this study. The research will give a complete analysis of the market in each segment and quantitative data such as market revenue (USD million), market share in percent, and market CAGR from 2022 to 2030. This study examines the impact of the COVID-19 outbreak on the Demat Account market, including supply chain analysis, impact assessments on the Demat Account market size growth rate under various scenarios, and the measures that Demat Account companies will take in response to the epidemic.

What is a Demat Account?

A Demat account is primarily used to hold securities and shares electronically. As a replacement for actual share certificates, the notion was first offered in the country in 1996. A Demat account not only simplifies and speeds up share trading but also eliminates all of the hazards and issues that come with actual share certificates. A Demat account can store a wide range of investments, including stocks, ETFs, bonds, debt instruments, mutual funds, and government securities. If you want to invest in the stock market in India, you must have a Demat account.

Growth Drivers

The report also includes a detailed qualitative analysis of the Demat Account market, which includes Market Drivers, which explains the market’s driving factors and demand, Market Challenges, which explains the market’s restraints and growth, and Market Opportunities, which explains the market’s upcoming trends and opportunities, as well as where existing companies can focus on gaining a competitive advantage. The Demat Account report also includes a full Porter’s Five Forces, Micro and Macro Economic analysis to assist readers and users in comprehending and making smart business decisions.

Source of secondary income

The rapidly developing market of Demat accounts in India creates a demand for generating secondary sources of income. India is a developing country, and progress is needed to uplift the standard of living among the population. People are now interested in the investment and are interested in opening the Demat account for trading.

Easy onboarding process

One should mandatorily have the Demat account for investment in stocks, shares, etc., and online trading. In India, opening the Demat account is now a quite easy one should only have the Aadhar card and one-time password (OTP) received on the registered mobile number to open the Demat account. Various financial applications and institutions are now providing an easy ongoing process to open a Demat account through the mobile application. Smooth and easy access to stock markets because of technology, such as e-KYC and Aadhaar e-signing, helped the retail investor community grow.

Restraints

Dishonest brokers & Costs associated with a Demat account

Choosing an honest broker, the fiduciary broker, is akin to finding a needle in a haystack. Many brokers indulge in proprietary trading, i.e., they evolve the counterparty to a client’s trade. But at Samco, we observe the highest standards of corporate governance and provide 100% transparency with 0% conflict of interest. One of the main disadvantages of a Demat account is the cost associated with opening and operating a Demat account. Demat account costs include opening, transaction, custodian, and annual maintenance costs.

Pre-Covid-19 impact on India Demat Account market

Before the covid-19 period, The Demat Account market grew significantly before the Covid-19 pandemic but not in large numbers. Most people were busy handling their jobs and business and were not aware of the Demat accounts and investment in stocks and the market. As lockdown was implemented after covid-19, people learned more about the Demat account and stocks. They started trading by opening a Demat account and kept it as a secondary source of income.

Covid-19 impact on India Demat Account market

During the covid-19 period, in a year marked by covid-led uncertainty, which left many jobless or facing salary cuts, retail investors flocked to the stock markets. The number of people dabbling in stocks has reached an all-time high in the fiscal year (FY) 2021. Between April 2020 and Exchange Board of India, new dematerialized or Demat account additions reached an all-time high of 10.7 million, according to data from the Securities and Exchange Board of India (Sebi). This is more than double the number of new accounts opened in FY20, totaling 4.7 million. In both FY19 and FY18, around 4 million new accounts were added.

Post Covid-19 impact on India Demat Account market

After the covid-19 outbreak, the Demat Account business has been impacted by the increased incidence of Covid-19 in India. As there has been an increase in the number of Demat accounts in India after the pandemic, there is the possibility of high growth in the India Demat account market. With an increase in the number of Demat accounts by 10.7 million in 2020-2021, the market will grow significantly.

By Type Segmental Analysis

Based on type, the India Demat account is segmented into Regular Demat account, Repatriable Demat account, and Non-repatriable Demat account. Regular Demat accounts hold the largest share in the global India Demat account. A Regular Demat account desires to make trading operations simpler. Transfer of shares can be carried out easier than ever and can complete within a few hours compared to weeks or months. Since the regular Demat account allows the investor to hold shares in the electronic form, it destroys the chance of misplacement, damage, theft, and forgery, as was the case with physical shares.

By Region Segmental Analysis

Based on region, The India Demat Account market is characterized by North India, West India, East India, and South India. West India region Demat Account market is the largest market for Demat Account in India because of having one of the stock exchanges in Maharashtra and many industries in the West India region. India currently has roughly 6.9 crore Demat accounts, with Maharashtra continuing to lead the way with 1.49 crore investors, far ahead of Gujarat, which came in second with 85.9 lakh.

Competitor Analysis

Companies include Zerodha, ICICI Direct, Motilal Oswal, 5Paisa, Kotak Securities, Sharekhan, Karvy, HDFC Securities, IIFL, Angel Broking, Edelweiss Other Prominent Players. Key Stakeholders

• Market research and consulting firms
• Local governments
• Regulatory bodies
• Brokers

Recent Developments

• 7 million new demat accounts were opened in January 2021 alone, the largest monthly growth since September 2019, when 1.9 million accounts were opened.
• As of January, India had 51.5 million total Demat accounts, up from 40.8 million at the end of FY20 and 35.9 million in FY19.
• Retail investors flocked to trading for a quick buck in FY21, as competing asset classes such as fixed deposits, bonds, and real estate gave lesser returns than stocks. The Sensex and Nifty are expected to have their greatest returns in 11 years in FY21. So far in FY21, both benchmark indices have gained 72-75 percent, with BSE Midcap and BSE Smallcap gaining 96 percent and 120 percent, respectively.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 25.49 million
The revenue forecast in 2028	USD 75.66 million
Growth Rate	CAGR of 12.42% from 2020 to 2027.
Historical data	2017-2019
Forecast period	2021 – 2027
Region covered	North India, South India, West India, East India
Key companies Profiled	Zerodha, ICICI Direct, Motilal Oswal, 5Paisa, Kotak Securities, Sharekhan, Karvy, HDFC Securities, IIFL, Angel Broking, Edelweiss and Other Prominent Players

Market Modelling

By Type

• Regular Demat account
• Repatriable Demat account
• Non-repatriable Demat account

By Region

• North India
  • Age distribution of Demat account holders
    • Broker distribution of Demat account holders
  • Gender distribution of Demat account holders
• South India
  • Age distribution of Demat account holders
    • Broker distribution of Demat account holders
  • Gender distribution of Demat account holders
  • • • Age distribution of Demat account holders
        • Broker distribution of Demat account holders
      • Gender distribution of Demat account holders
      • East India
        • Age distribution of Demat account holders
          • Broker distribution of Demat account holders
        • Gender distribution of Demat account holdersWest India

By Region

• North India
• West India
• East India
• South India

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