Lumikai, in collaboration with Google, has unveiled the much-awaited third edition of its annual ‘State of the Indian Gaming Market’ report. The report, launched at the 15th Indian Game Developers Conference (IGDC) in Hyderabad, provides a comprehensive overview of the Indian gaming industry and its remarkable growth over the years. Salon Sehgal and Justin Sriram Keeling, founding general partners of Lumikai, led the presentation of the report.
According to the findings of the report, the Indian gaming market will reach $7.5 billion by FY 2028. This significant growth is attributed to several key factors that have transformed India from an emerging market to a major player in the global gaming arena.
The data presented in the report highlights that faster download speeds, rapid smartphone penetration, and data availability have played a key role in this growth. In addition, rising popularity of byte entertainment and participation in interactive gaming communities are contributing to the expanding gaming landscape in India.
The report forecasts a high compound annual growth rate (CAGR) of 20%, primarily driven by increasing in-app purchases and advertising revenue in casual and mid-range games. In addition, the report highlights that India ranks among the top countries in the world in terms of total mobile game downloads, with more than 50% of all Indian internet users playing games, a figure that is set to grow at a CAGR of 12% in FY 2023. The data also shows a 20% increase in the average time spent playing games per week, which now averages 10-12 hours per gamer.
Notably, the report refutes the notion of a decline in in-app purchases following the suspension of the release of leading games in the Battle Royale series, BGMI and Free Fire. In-app revenues outside of these games grew 37% year-on-year, indicating a steady increase in monetization in casual and mid-range games. This is indicative of the growing trend of Indian gamers’ familiarity with new intellectual property (IP) and their propensity to pay.
However, the report also highlights industry challenges such as recent tax policies and industry consolidation affecting Real Money Gaming (RMG) revenues, which grew by $500 million in FY23 but is expected to struggle in the coming years.
Salone Sehgal, Founding General Partner of Lumikai, shared her excitement about the report’s results: “We are very excited to present the 3rd edition of the State of India Gaming report in collaboration with Google. The high growth rates and results in our report are a testament to the sustained interest in gaming in India. The gaming industry in India is booming, driven by rapid digitalization, growth in the number of new gamers and new paying players, and an increase in the variety of gaming content consumed. We are particularly excited to see the growing number of gamers from non-metropolitan cities, which is a testament to the tremendous growth potential and opportunities in the Indian gaming industry. As a team, we are committed to being at the forefront of developing India’s gaming economy and will continue to build the best interactive media and gaming platforms across the country.”
The report also provides valuable consumer data: 59% of gamers are male, 41% are female and 66% are from non-metro cities. Most users play games to relax or socialize with friends. More than 58% of users make in-app purchases, with 62% of users preferring to use UPI as their payment method for games.
