NEW DELHI: India’s e-gaming market is on the brink of significant expansion, with projections indicating a substantial 20 per cent growth trajectory by FY25. This anticipated surge is expected to propel the gaming sector’s value to an estimated Rs 231 billion.
Projections suggest that this segment will continue its upward trajectory, growing at a compounded annual growth rate (CAGR) of 33 per cent to reach an impressive Rs 25,300 crore by FY27.
From a global perspective, India’s dominance in the gaming arena is unmistakable. The country recorded 9.5 billion gaming app downloads in 2023, contributing approximately 20 per cent of the world’s total mobile game downloads. This supremacy is further reinforced by projections indicating a significant expansion in India’s online skill gaming market, expected to reach $6 billion by 2028.
India has solidified its position as the world’s largest mobile gaming market, surpassing all others in terms of app downloads and transaction-based game revenues. Recent data indicates a surge in the Indian gaming industry, with transaction-based game revenues witnessing a substantial 39 per cent increase in 2022 compared to the previous year.
Furthermore, India boasts the largest fantasy sports market globally, with a staggering user base of 180 million. Over the past five years, Indian gaming has attracted significant investment, totalling USD 2.8 billion from both domestic and global investors. Notably, funding in the sector surged by 380 per cent from 2019 and saw a 23 per cent increase from 2020.
Paavan Nanda, co-founder of WinZO, remarked that there is a significant transformation happening on a global scale. Nanda said, “We are witnessing a seismic shift in the global landscape. India’s participation in the GDC is a testament to how far the country’s technology & innovation ecosystem has come. From the Honorable Prime Minister’s clarion call in 2015 for India to be a startup nation to today, in 2024, India ranks number three globally for total startup output”.
He added, “A global exposure is what we aspired for to build world class products that are made in India for the world. We are fortunate to create the opportunity for our peers through this initiative.”
India’s gaming landscape is further enriched by the presence of three gaming unicorns — Game 24X7, Dream11 and Mobile Premier League — demonstrating the industry’s potential for fostering billion-dollar enterprises.
Currently valued at $1.6 billion, the Indian gaming industry is poised for exponential growth, with projections suggesting a count of 500 million online gamers by 2025 and a CAGR of 20 per cent between 2022 and 2025. Recent government initiatives underline India’s commitment to nurturing the gaming sector’s growth.
The establishment of a National Animation, Visual Effects, Gaming, and Comic (AVGC) Centre of Excellence in collaboration with IIT Bombay, along with dedicated AVGC policies in states like Karnataka and Telangana, reflect the government’s proactive stance towards harnessing the industry’s potential.
Additionally, the formation of an AVGC Task Force underscores efforts to realize the sector’s full economic and creative potential. Despite recent tax policy changes and potential challenges in user base monetization, investors remain optimistic about the Indian gaming industry’s future.
The sector’s robust growth fundamentals, coupled with innovative monetization models facilitated by platforms like the United Payment Interface (UPI), position India as a global gaming powerhouse poised for substantial contributions to the interactive entertainment landscape.
As India transitions from being a net importer of gaming titles to an exporter of its culture, heritage, content, and intellectual property, the future of the gaming industry looks promising. With a diverse talent pool, visionary leadership, and unparalleled growth trajectory, India is poised to redefine the global gaming landscape, generating high-quality jobs and propelling economic growth in the years to come. (ANI)
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