India's Gaming Industry Predictions Revealed, Valued at $9.2 Billion
Lumikai's 2024 "State of India Interactive Media and Gaming Report" Highlights Rapid Expansion of Indian Gaming Industry
Lumikai, India's leading interactive media and gaming Venture Capital fund, recently launched its annual market intelligence report titled "State of India Interactive Media and Gaming Report." The report, based on extensive primary research, has established itself as the authoritative resource for understanding India's gaming landscape.
The Indian gaming industry has experienced significant growth, earning $3.8 billion in revenue in FY24, marking a 22.6% increase over FY23’s $3.1 billion. The sector is projected to grow at a compound annual growth rate (CAGR) of 20%, expected to surpass $9.2 billion in revenue by FY29.
The gaming population in India had reached 568 million by November 2023, with 41% being female and 66% coming from non-metro areas. The average gamer spends 10–12 hours weekly on video games.
India is one of the top five global mobile gaming markets and has seen a massive increase in game downloads and local game studios. From 15 studios in 2009 to 275 by 2021, the number of studios has grown exponentially.
The report notes the importance of regulatory developments, with Karnataka planning a regulatory authority for real-money gaming (RMG), reflecting ongoing challenges due to lack of uniform national regulation and state-specific rules impacting business operations.
The interactive media segment, including esports, is growing, and streaming platforms are beginning to tap gaming to boost viewership. However, Indian OTT platforms have yet to fully leverage gaming collaborations. Google is working on a business model to allow all RMG apps on its Play Store in India, further indicating the sector’s growing commercial importance.
The report also reveals that gaming accounted for 30% of the $12.5 Bn new media revenue pie in FY '24. In-app purchases, propelled by mid-core games, grew by 41% year-on-year, with 148 Mn users making in-game purchases, and 8 Mn new paying players added in FY24.
Key statistics from the report include: - The gaming industry earned $3.8 billion in FY24, with $2.4 billion coming from the RMG segment. - The gaming population in India had reached 568 million, with 41% being female and 66% coming from non-metro areas. - The average gamer spends 10–12 hours weekly on video games. - India is one of the top five global mobile gaming markets and has seen a massive increase in game downloads and local game studios. - The report notes the importance of regulatory developments, with Karnataka planning a regulatory authority for RMG. - The interactive media segment, including esports, is growing, and streaming platforms are beginning to tap gaming to boost viewership. - Google is working on a business model to allow all RMG apps on its Play Store in India. - Gaming accounted for 30% of the $12.5 Bn new media revenue pie in FY '24. - In-app purchases, propelled by mid-core games, grew by 41% year-on-year. - 148 Mn users make in-game purchases, with 8 Mn new paying players added in FY24.
The report also mentions that Vodafone India is planning to enter the e-gaming market in India, and Nazara Technologies' subsidiary Datawrkz has made an acquisition, but further information is not provided in the paragraph. Additionally, M-League has announced a new development, but details are yet to be disclosed.
Overall, Lumikai’s 2024 report paints the Indian gaming and interactive media market as a large, fast-growing, and increasingly lucrative sector facing regulatory challenges but attracting international investment and platform attention.
- The growth in India's gaming industry, as highlighted in Lumikai's 2024 report, has not only led to an increase in local game studios but also attracted the attention of companies offering gadgets and technology, seeking to capitalize on this lucrative market.
- As the esports segment within the interactive media sector expands in India, streaming platforms are incorporating gaming content to boost viewership, while technology companies might find opportunities to develop and market gadgets tailored for the increasing number of gamers in the country.
