India Gaming Market Projected To Reach $7.5 Billion By FY28, Country Leads In Global Mobile Downloads: Lumikai
Improved download speeds, widespread smartphone adoption, and affordable data plans were found to be the primary driving factors.
Hyderabad: Lumikai, the first dedicated games and interactive media VC, has unveiled its highly anticipated 3rd annual ‘State of India Gaming’ report in collaboration with Google. The report was introduced at the 15th India Game Developers Conference (IGDC). Providing key insights into India's gaming landscape, indicating that the Indian gaming industry is on track to reach a valuation of $7.5 billion by fiscal year 2028, clocking $3.1 billion in FY23. It represents a significant shift from an emerging market to a prominent global player, driven by improved download speeds, widespread smartphone adoption, and affordable data plans.
The surge in demand for bite-sized entertainment and active participation in gaming communities has also significantly contributed to the industry's growth.
India A Global Leader In Mobile Game Downloads
One of the standout findings in the report is the robust growth rate projected at 20 per cent CAGR, primarily fueled by the increasing popularity of in-app purchases and in-game advertising revenues in casual and mid-core games.
Furthermore, India stands out as a global leader in total mobile game downloads, with over 50 per cent of the country's internet users engaging in gaming activities. This user base grew by 12 per cent in FY23, underlining the sector's rapid expansion. The report also noted that the average time spent on gaming increased by 20 per cent, with gamers dedicating 10-12 hours per week to gaming.
Real Money Gaming Took A Hit But Still Performed Resiliently
Contrary to expectations of a decline in in-app purchases following the suspension of top battle royale games, BGMI and Free Fire, the report revealed a 37 per cent year-on-year increase in in-app revenue outside of these titles. This growth is attributed to the rising monetisation across casual and mid-core games, reflecting Indian gamers' inclination to explore new intellectual properties and an increased willingness to make in-game purchases.
Simultaneously, the report indicated a $500 million increase in revenue from Real Money Gaming (RMG) in FY23. However, RMG may face challenges in the coming years due to evolving taxation policies and industry consolidation.
66 Per Cent Gamers Hailing From Non-Metro Areas
Based on a survey class of 2,317 users, the report also provided intriguing consumer insights, revealing that 59 per cent of gamers are male, while 41 per cent are female, with a significant 66 per cent hailing from non-metro areas. Most users play games for relaxation and social interaction with friends.
The study found that 41 per cent of surveyed users have transitioned from casual games to a broader range of gaming genres, while 28 per cent exhibited a proclivity for experimenting with new game types. In terms of monetisation, over 58 per cent of users engage in in-app purchases, with 62 per cent favouring the Unified Payments Interface (UPI) as their preferred payment method for gaming transactions.
Salone Sehgal, Founding General Partner of Lumikai, expressed excitement about the report's insights, emphasising the sustained enthusiasm for gaming in India. She noted that the rapid digitisation, the influx of new gamers, the growth of paid gamers, and the diversification of gaming content consumption have all contributed to the industry's upward trajectory.
Also attending the report unveiling was Aditya Swamy, Director, Google Play, who noted that India boasts 140 million buyers, which is a huge scale and a major draw for global titles to release their titles in the country, with a healthy bit of localisation of content. He also added that UPI had a major hand to play in the increase in transaction volume.
As per the Lumikai report, UPI transaction volume stood at 5.3 billion in FY19, growing up to 83.7 billion in FY23.
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