India's gaming industry is expected to reach $7.5 billion by FY28
The Indian gaming market is expected to grow at a Compound Annual Growth Rate (CAGR) of 20 percent and reach a valuation of $7.5 billion by FY28. The growth will be driven by the rise in in-app purchases and advertising revenues in casual and mid-core games. The Indian gaming industry generated a revenue of $3.1 billion in FY23.
Demand for games in India was robust, with 15.4 billion gaming downloads in FY23, marking India as one of the largest gaming markets in the world, according to the 'State of India Gaming' report by gaming and interactive media fund Lumikai, in collaboration with Google.
There are over 568 million gamers in the country over 50 percent of all Indian internet users. "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. Even though funding has slowed down this year, the outlook towards the gaming industry is extremely positive", said Salone Sehgal, Founding General Partner.
The information also reveals India's global standing as one of the foremost countries in the world for total mobile game downloads. More than 50% of all Indian internet users comprise the gaming population in the country. As per the report, this number saw a growth of 12% in FY23. Additionally, the data shows that the average time spent on gaming has increased by 20%, to 10-12 hours per gamer per week.
According to a recent report, the majority of gamers in India are male, making up 59 percent of the total gaming population. The remaining 41 percent are female, and over two-thirds (66 percent) of all gamers come from non-metro areas. The report also revealed that more than half (58 percent) of users make in-app purchases, and the majority of them (62 percent) prefer using UPI as their mode of payment for games.
