With the highest game downloads in the world, the second-highest number of gamers in the world, and a threefold growth forecast in five years - the Indian gaming industry is, apparently, on a roll. Despite following global patterns and trends, the Indian gaming industry also adheres to its uniquely original identity. This makes India an important and interesting market in the global gaming industry.
There are a few reasons that gave India a head-start in gaming. It has a generational legacy of card playing. Specifically, poker, teen patti or rummy. It is well reflected in the millions of teen patti and rummy app downloads, much more than anywhere else in the world. Similarly, our national obsession with cricket has spawned a massive fantasy league gaming market. Again, unlike anywhere else in the world. Besides, there is a growing market for homegrown storylines in gaming titles, making platforms rethink their game development strategies.
Amidst all of this, Indians clock in at a lower per-user gaming spend than developed countries. However, the massive gaming community compensates for it with fast growth and tall revenue figures. So, what does all these mean in terms of numbers?
India and Gaming: In Numbers
The number of active gamers may vary with time and source, but the recent Grant Thornton Bharat and the E-Gaming Federation (EGF) report puts it at 442 million. China leads this ranking with 674 million.
The industry is presently valued at $3.1 billion and is estimated to reach $8.92 billion in five years. Indians account for 16% of gaming app downloads in the world, amounting to a staggering 9.5 billion. Real money games account for around 83-84% of this revenue. This segment alone has around 100 million gamers in India, 90% of whom pay to play. Rummy game enthusiasts on popular rummy apps like RummyTime are a part of this thriving real money games sub-segment.
There are around 15,000 game developers and programmers in India. Indian gaming companies have raised funds worth $2.8 billion in the last five years. This includes newsmakers like the SBI Mutual Fund’s ?410 crore investment in digital gaming, the Kamaths investing ?100 crore in a leading gaming company, Korean giant Krafton’s $150 million commitment to Indian gaming startups, etc.
Interpreting the Revenue Promise
Given the high volume of app downloads, the rising popularity of real money apps like RummyTime, and the untapped market potential of India, the estimated growth in revenue seems justified. While the tax regime on gaming is steep at the moment, one can expect it to only improve. Besides, industry stakeholders expect the growth drivers to comfortably overcome the tax burden in the long run.
In a significant jump, India’s FY 23 gaming revenue reached $2.1 billion. The rising penetration of smartphones into the Indian hinterland, affordable and quality internet and the young and tech-savvy population are identified as the key drivers for the industry’s growth. Besides, the rise in disposable income, along with these factors, is expected to raise the average revenue per user in India.
It has been observed that gamers associated with esports tend to spend more on gaming. According to a recent study, this amounts to 12% more spending compared to a gamer who is not associated with esports. Notably, Indian gamers are increasingly getting more involved in esports, with 65.4% of them either watching or playing esports and/or competing in tournaments.
Studies also show that paying female gamers spend around 8.5% more than their paying male counterparts. With 41% female participation, the gender gap in gaming is gradually shrinking in India. This can be another ancillary influence that can help Indian gaming fulfil its revenue promise.
Strong Growth Prospects
Invest India expects the Indian gaming industry to continue to grow at a healthy CAGR of 20.7% between 2023 and 2025. The Indian government has set up a National Animation, Visual Effects, Gaming and Comic (AVGC) Centre of Excellence in collaboration with IIT Bombay. The government also allows 100% FDI through automatic routes for this sector.
The sector is expected to generate over 2.5 lakh jobs in the next 10 years. This can bridge the gap between the rapid expansion of the industry and the required skilled professionals to harness the industry's potential domestically. Even the government is keen to see India lead globally on the supply side of the gaming landscape.
Looking at the Future
Prime Minister Narendra Modi voiced high hopes for the Indian gaming industry in his address on Independence Day this year. While the market in India grows every year, the PM stressed the ‘Made in India, made for the world’ mantra. With a robust ecosystem built around gaming, it can be hoped that the 1500+ gaming developers and studios can come up with world-class gaming titles. And perhaps one day, challenge the Nintendos and the PlayStations of the world.