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Indian Gaming Market Set to Reach $7.5 Billion by 2028 Reveals a Report by Lumikai and Google
According to the findings of the report, the Indian gaming market is on a trajectory to reach a valuation of $7.5 billion by the fiscal year 2028.
Lumikai, in collaboration with Google, has launched the highly anticipated 3rd edition of their annual "State of India Gaming" report. The report unveiled at the 15th India Game Developers Conference (IGDC) in Hyderabad, offers a comprehensive overview of the Indian gaming industry and its remarkable growth over the years. Salone Sehgal and Justin Shriram Keeling, Founding General Partners of Lumikai, presided over the report's launch.
According to the findings of the report, the Indian gaming market is on a trajectory to reach a valuation of $7.5 billion by the fiscal year 2028. This remarkable growth can be attributed to several key factors that have transformed India from an emerging market into a major player on the global gaming stage.
The data presented in the report highlights how faster download speeds, rapid smartphone penetration, and affordable data have played a pivotal role in this growth. Additionally, the increasing affinity for byte-sized entertainment and participation in interactive gaming communities have further fueled the expansion of the gaming landscape in India.
The report anticipates a robust growth rate of 20% Compound Annual Growth Rate (CAGR), driven primarily by increasing in-app purchases and advertising revenues in casual and mid-core games. Furthermore, it underscores India's global position as one of the leading countries for total mobile game downloads, with over 50% of all Indian internet users engaging in gaming, a figure that grew by 12% in fiscal year 2023. The data also reveals a 20% increase in the average time spent gaming per week, now averaging 10-12 hours per gamer.
Remarkably, the report counters the narrative of a decline in in-app purchases following the suspension of top Battle Royale games, BGMI and Free Fire. In-app revenue outside of these games witnessed a 37% year-on-year surge, showcasing the steadily increasing monetization across casual and mid-core games. This indicates a growing trend of Indian gamers exploring new Intellectual Properties (IPs) and an increased propensity to pay.
However, the report also highlights challenges in the industry, such as the recent taxation policies and industry consolidation affecting Real Money Gaming (RMG) revenue, which grew by $500 million in FY23 but is expected to face headwinds in the coming years.
Salone Sehgal, Founding General Partner of Lumikai, shared her excitement about the report's findings, saying, "We are thrilled to unveil the 3rd edition of the State of India Gaming report in partnership with Google. The strong growth & insights showcased in our report are a testament to the continued appetite for gaming in India. Indian gaming has been on the rise because of rapid digitization, growth in new gamers and new paid gamers, and increasing diversity of gaming content consumed. We're particularly excited to see the increasing engagement of gamers from non-metro cities, which demonstrates the massive growth potential and the opportunity in the Indian gaming industry. We are committed as a team to be at the forefront of powering India's gaming economy and we will continue to enable the best interactive media & gaming founders across India."
The report also provides valuable consumer insights, revealing that 59% of gamers are male and 41% are female, with 66% coming from non-metro cities. Most users play games to unwind or socialize with friends. Over 58% of users partake in in-app purchases, with 62% of users preferring UPI as their mode of payment for games.