India's Thriving Gaming Market

In 2023, India emerged as the biggest gaming market globally with 568 million gamers and a record-breaking 9.5 billion gaming app downloads. This surge, in popularity, can be attributed to advancements in technology and evolving consumer choices. In this blog, we delve into India's gaming revolution and explore its ascent, key drivers, and vast potential. The discussion covers trends, obstacles, and opportunities influencing this industry, offering analysis and valuable data. From the prominence of gaming to the emergence of content creation and the evolving gamer demographics, we explore the different revenue streams propelling growth. This detailed exploration of India's gaming landscape provides players and industry experts insight into its accomplishments, challenges, and promising future.

Unveiling the potential: market size and growth trajectory

A recent study by Mordor Intelligence revealed that the gaming market in India reached US$ 2.2 billion in 2023 and is expected to grow US$ 8.6 billion by 2028, implying a CAGR of 27.4% over the forecast period. This rapid expansion highlights the opportunities in the Indian gaming sector.

Source-Economic Times

A generation on the rise: The power of young India

India's gaming community thrives due to its population. An interesting fact often cited is that India has more than 600 million individuals under the age of 35 accounting for 45% of the population (according to Worldometers, 2024). These young adults are not only youthful but also tech savvy. A report published in 2023 by Internet and Mobile Association of India shows that smartphone usage in India has reached 75%. The widespread adoption of smartphones along with a growing interest in entertainment positions them as the driving force behind the gaming industry. Furthermore, their active participation is fuelled by increasing income levels. This points towards a group of consumers who are increasingly drawn to gaming. Their preference is evident in the growth of in-app purchases, which serve as a revenue stream for games. The young demographic is not just playing games, they are actively shaping the industry by seeking games, with engaging narratives and microtransactions that enhance gameplay and an evolving mobile gaming landscape.

Mobile gaming: The undisputed king

Mobile gaming holds a strong position, in the market capturing an impressive 90% share of the total gaming revenue. This supremacy can be attributed to a combination of factors that have fuelled the growth of mobile gaming in India. One key factor is the availability of games, which require no initial investment and allow easy access for smartphone users to download and enjoy these games. This accessibility aspect is particularly significant in a market like India, where affordability plays a role. According to reports from App Annie in 2023, although free-to-play games lead in terms of downloads, in-app purchases play a role in generating revenue contributing than 70% to the total mobile gaming earnings in India.

Furthermore, the popularity of gaming transcends affordability and accessibility. Game developers cater to an audience by offering a range of popular genres. For instance, strategy games such as Clash of Clans Age of Empires; and Castle Siege challenge player's strategic thinking and resource management abilities. On the other hand, casual games like Candy Crush Saga or Ludo King provide a relaxed experience suitable for brief moments of entertainment, for all types of gamers.

Casual games, with easy-to-understand rules and engaging gameplay, such as Subway Surfers and Carrom King have experienced expansion drawing in a large audience looking for quick entertainment. The diverse range of options means there is a game to suit everyone reinforcing its stronghold, in the Indian gaming industry.

The rise of PC and Console gaming

PC and console gaming are making a comeback in India despite mobile gaming’s popularity. This resurgence is fuelled by a number of factors listed below:

• The cost of gaming laptops has dropped by 10% in 2023 compared to last year making them more affordable for an audience.
• Retailers and online platforms offering zero-cost EMIs have also contributed to making gaming equipment more budget-friendly.
• The average broadband download speed has now exceeded 20 Mbps, an improvement from the speed of 7.5 Mbps back in 2019. This improved connectivity opens opportunities for PC and console gamers allowing for multiplayer experiences access to complex game features and creating more immersive gameplay that may not be achievable on mobile devices due to hardware constraints.

With affordability on the rise and infrastructure getting better it seems like there's a future ahead for PC and console gaming, in India as it carves out its space alongside mobile gaming dominance.

E-sports: A booming arena for competitive gaming

The world of e-sports or competitive video gaming is experiencing a surge in India moving beyond a trend to being recognized as a sport with significant government backing and state-driven initiatives. As per data from Nazara Technologies in 2023, India's e-sports viewership has soared to over eighty million marking an 83% increase from two years ago. This surge in viewer engagement does not solely propel the e-sports community forward; it also lays the groundwork for aspiring professional gamers.

With the growing number of people tuning in it is expected that India will have around 1,250 professional gamers by 2028 marking a 2.5-fold increase, within just five years. This rise highlights the expanding career opportunities and the increasing popularity of e-sports in the Indian scene. As e-sports gains viewers and players the competition gets tougher. Major e-sports events in India are seeing an increase in prize money attracting talent and boosting the professionalism of the gaming industry. For instance, at the PUBG Mobile India Open in 2023 the prize pool exceeded Rs. One crore (US$ 125,000) demonstrating the rewards for skilled players. This rapid growth not only emphasizes the potential of e-sports as a career choice but also showcases its transformative impact on India's gaming community.

Job creation engine: A boon for the economy

In India, the gaming industry provides more than just entertainment; it plays a role in job creation. According to the India Gaming Report 2024, the sector is expected to generate 250,000 jobs over the next ten years, supplementing the existing 100,000 individuals employed directly and indirectly. The new jobs will cover an array of roles, including game developers, programmers, testers, artists, animators, UI/UX designers, e-sports event organizers, and marketing professionals. This expansion caters to individuals with skills and educational backgrounds. Efforts are being made to address skill gaps and prepare individuals for these emerging roles through training initiatives. These initiatives involve partnerships between industry leaders, educational institutions, and government entities to develop game development e-sports management courses and related fields.

The road ahead: challenges and opportunities

Despite its promising future, the Indian gaming market faces certain challenges. These include:

Conclusion

India’s gaming industry is on the rise driven by its tech savvy youths and a growing disposable income. The country has positioned itself as a major player in the gaming market with mobile gaming being particularly popular among both casual players and competitive gamers. The future of gaming in India looks bright beyond platforms. The accessibility of devices and the expansion of high-speed internet are paving the way for a resurgence in PC and console gaming. From programmers building worlds to skilled artists bringing characters to life and from e-sports managers organizing exciting competitions to game developers crafting innovative titles there are plenty of opportunities within the industry.

India’s competitive edge in game development also makes it an appealing destination for studios seeking talent at low costs. However, overcoming challenges such as establishing regulations is crucial for India to solidify its position on a scale. Enhancing the infrastructure, in regions can bridge the divide allowing a significant untapped demographic to engage in the online world. India has the opportunity to solidify its position as a major player, in the evolving gaming industry by addressing these challenges and harnessing its potential.