Gaming in India- On the Up and Up: A Dynamic Sector Transforming Entertainment
India's gaming industry is experiencing an unprecedented boom, positioning itself as a major player in the global entertainment landscape. With a vibrant ecosystem supported by a massive player base and innovative technologies, gaming in India has not only surpassed traditional sectors like film within the Media & Entertainment industry but is also setting new benchmarks for growth and engagement. Here's an in-depth look at the factors driving this exciting trend.
Sector Profile and Growth Rate
The Indian gaming industry boasts a staggering 568 million gamers, with approximately 100 million engaging in gaming daily. In 2023, the sector grew by 22%, making it the fastest-growing segment within the Media & Entertainment Sector. This growth is reflected in a remarkable average Compound Annual Growth Rate (CAGR) of 14% across all gaming modalities in India. To put this in perspective, the historical CAGR from FY 2020 to 2023 for India stood at 28%, significantly outpacing other major markets like the USA (9%) and China (7%).
Player Habits
Mobile gaming dominates the Indian market, with India accounting for 20% of the world’s total mobile game downloads—more than Brazil and the USA combined. An impressive 90% of gaming in India is conducted on mobile devices, compared to 37% in the USA and 62% in China.
The "pay to play" model is particularly robust, with over 100 million gamers engaging in real money gaming, including popular formats like fantasy sports, rummy, and poker. These segments generate over 80% of the revenue for the gaming industry. Moreover, 2023 saw over 9.5 billion gaming app downloads in India, with in-app purchases growing at a CAGR of 35%.
Gamers Demographics
India’s gaming demographic is diverse and widespread, with 55% of gamers residing outside of major cities. Women represent 40% of the gaming community, showcasing the inclusive nature of gaming in India. The use of local languages is also prominent, with 34% of gamers preferring Hindi, 28% English, and the remainder using other local languages, highlighting the vernacular reach of gaming platforms.
Other Matters
The growth of the internet has been a significant enabler, with rural areas seeing an internet growth rate of 13%, compared to 4% in urban areas. Recent changes in GST regulations for gaming have prompted revised business models, yet the sector continues to see sustained growth.
Conclusion
India’s gaming industry is not just an entertainment avenue but a vibrant economic sector with profound social and cultural impacts. As it continues to grow, it promises new opportunities for innovation and engagement in the digital age, driven by a young, tech-savvy population eager to embrace new gaming experiences.
Source of Data:
FICCI-EY March 2024 Media & Entertainment Report
Interactive Entertainment & Innovation Council & Winzo Report - March 2024