India’s gaming market is experiencing a significant boom recording $3.8bn in FY24. It is forecasted to reach $9.2bn by FY29 exceeding expectations growing at 20% 5-year compound annual growth rate (CAGR). In-app purchases (IAP) constitute the largest revenue with 41% year-on-year growth. According to the data collated by Lumikai investment advisor in collaboration with Google and a leading consulting firm Indian gaming market added 23 mn new gamers crossing 590mn gamers in FY24. Gaming is the fastest-growing segment within the new media market, constituting 30% of the market share. India’s new media market size stands at $12.5 bn in FY24.

The increasing gaming trend has opened opportunities for developers, technology partners, investors and the young tech-savvy population. The rising affordability of smartphones along with the transformation in digital infrastructure propelled this growth.

India is the world’s second-largest mobile gaming downloads with some downloads above 15.2 bn second only to China with 29.3bn. 62% of internet users accounting for 936 mn play games. The average weekly time spent playing games increased from 10 hours to 13 hours marking a surge of 30%.

A shift away from Real Money Games towards Midcore games was observed. Midcore games registered astounding year-on-year growth with 53%, followed by casual and hyper-casual games at 10%. Mid-core games are a mixture of casual and hardcore games, they include side quests, resource management and multiplayer experiences. In-app purchases show significant growth among mid-core games namely Battleground Mobile India, and Clash of Clans, while green shoots were also seen in Roblox and EAFC Mobile. The annual average revenue per player increased to $22 for FY22 with 25% of user making in-game purchases, and the number of paying gamers increased to 148 mn. Over 60% of Real Money gamers also pay for mid-core games, suggesting a high degree of overlap in gamer personas and the growing sophistication of gamers.

Study shows that relaxation and distressing, socializing, creativity and self-expression are the major motivations to play while too many ads are one of the major reasons for games to fall out of trend. 56% of the gamers are men while 44% of gamers are women. 66% are not from metro cities. 43% of gamers are first-time earners within the age group 18-30. West India constitutes the highest number of paid gamers 31%.

The new GST regime has somewhat affected the revenue of RMG games with a 30% drop in revenue. Approximately 25% of companies face financial difficulties, as per the industry body. However, the PM has met with leading Indian gamers to deliberate the need for Minimal Government Intervention, Tailored support, clearer distinction from gambling, Games Based on Indian Themes and Societal Recognition. The government is planning to set up the National AVGC Centre Of Excellence in collaboration with IIT Bombay. The GOI is also organizing the WAVES summit in Feb 2025 to promote India’s media and entertainment industry and increase its international reach.