The online gaming industry in India has experienced significant growth in recent years, and is projected to continue expanding. The industry in India is expected to grow at a CAGR of 20percent over four years, reaching Rs 231 billion by 2025, according to a recent FICCI-EY report.
The report highlights how transaction-based gaming is projected to contribute significantly to this growth, expanding at a CAGR of 21percent to touch Rs 183 billion and account for 79percent of the total segment revenues. Casual gaming is also set to increase, with a CAGR of 15percent to reach Rs 48 billion.
Some of the factors driving this growth include access to high-speed internet in India’s Tier-II, III, and rural areas, clarity on new IT rules, conversion of feature phones into smartphones, and the continued growth of digital payments.
5G and cloud gaming technologies are also bringing more sophisticated games to the masses. Simultaneously, the simplification of legislation and regulation, with clarity on permitted games, is leading to more investment in the country’s gaming sector.
Additionally, new monetization models such as sachet pricing and in-app branded monetization are driving revenue growth. The Indian government’s recent push towards a digital economy has also been instrumental in boosting the online gaming industry. With these developments, the gaming industry in India is expected to continue its upward trend and present significant growth opportunities for businesses in the coming years.
According to the report, brands are also increasingly turning to online gaming to launch new products, host events, and explore new monetization avenues.
For example, United Colors of Benetton recently debuted in online gaming by creating a virtual collection specifically for Animal Crossing: New Horizons. This collection is available on Benetton Island, a destination within the game, where players can create different looks using virtual versions of the brand’s iconic garments. Similarly, Toyota engaged with its audience across Asia by organizing an e-Motorsport event on Gran Turismo, a racing simulation video game, allowing gamers to use Toyota sports cars for racing, which was live-streamed on Twitch, Facebook, YouTube, and Twitter. With brands finding success in online gaming, they are likely to continue leveraging gaming audiences by innovating in product awareness, product or service trial/experience, bookings, and after-sales service.
Popularity of gaming content is also peaking in India. Netflix released Arcane (based on Riot Games’ League of Legends games) and The Witcher series (based on the game series with the same name) that demonstrated that games can also be adapted into media and other IPs.
“We identified 12 to 20 hours of game-related premium content that was generated annually between 2018 and 2021. We expect premium content (films and OTT series) based on games will generate 20-30 hours a year going forward,” said the report.