The Indian gaming industry is poised for remarkable growth, with projections indicating a significant surge to $7.5 billion by the fiscal year 2028, according to Lumikai’s recent gaming report. This surge follows a substantial achievement of $3.1 billion in the fiscal year 2023, underscoring a robust growth trajectory for the industry.
Driving Forces Behind Growth
The report identifies in-app purchases and ad revenues as key drivers propelling the industry forward. Structural shifts towards increased spending on in-game features, coupled with the rising popularity of casual and midcore games, are expected to shape the gaming landscape significantly by FY28.
Challenges and Opportunities in Real Money Gaming (RMG)
Real Money Gaming (RMG) experienced a notable 33 percent revenue surge in FY23. However, recent taxation policies pose uncertainties, potentially hindering growth. Heavy tax burdens and industry consolidation could slow down RMG's upward trajectory.
Engaging the Gaming Community
The Indian gaming community has witnessed a remarkable surge in engagement, with a robust 12 percent growth in the total number of gamers in FY23. This growth is underscored by an increase in average time spent per user per week, indicating a growing affinity towards gaming experiences.
India's Global Standing in Mobile Game Downloads
India has cemented its position among the top countries globally for mobile game downloads, boasting a staggering 15.4 billion downloads. This reflects the widespread adoption and popularity of gaming within the country.
Resilience in In-Game Monetization
In-game monetization has demonstrated resilience despite challenges such as the suspension of popular titles like BGMI and Free Fire. In-app revenue outside of these titles recorded a commendable 37 percent year-on-year growth, showcasing increasing monetization trends across other casual and midcore games.
Demographic Insights
A survey involving 2,317 respondents revealed a gaming community predominantly comprised of men, accounting for 59 percent, while women constituted 41 percent. The majority of gamers fell within the age group of 18-30 years, indicating a youthful demographic driving industry growth.
Geographic Expansion
The gaming landscape is witnessing a notable increase in gamers from non-metro cities, with their share surging from 57 percent in 2022 to an impressive 66 percent in 2023. This expansion underscores the industry's reach beyond major metropolitan areas.
Conclusion: A Promising Future
The Indian gaming industry's remarkable ascent, driven by various factors, sets the stage for an exciting future. Continued innovation and economic contributions are anticipated to unfold on an unprecedented scale, further solidifying India's position in the global gaming arena.
