The Indian gaming industry achieved a staggering $3.1 billion in the fiscal year 2023, signaling a robust growth trajectory. Projections as per Lumikai’s recent gaming report indicate projections soaring to $7.5 billion by the fiscal year 2028.
Driving this rise are the dynamics of in-app purchases and ad revenues, anticipated to be the mainstay contributors to the industry’s growth, the report said.
Structural shifts toward a higher propensity to pay for in-game features and the burgeoning popularity of casual and midcore games are poised to play pivotal roles in shaping the landscape by FY28.
Real Money Gaming (RMG) witnessed a notable 33 percent revenue surge in FY23. However, a cloud of uncertainty looms as recent taxation policies threaten to apply brakes to this growth, with heavy tax liabilities and industry consolidation expected to slow down RMG’s upward trajectory.
The Indian gaming community has seen a remarkable surge in engagement, with the total number of gamers witnessing a robust 12 percent growth in FY23. This surge is underlined by the average time spent per user per week, indicating a growing propensity among users to delve into the gaming experience. Impressively, India has secured its place among the top countries globally for mobile game downloads, boasting a staggering 15.4 billion downloads.
Notably, in-game monetization demonstrated resilience in FY23, defying odds amidst the suspension of popular games such as BGMI and Free Fire. In-app revenue outside of these suspended titles recorded a commendable 37percent year-on-year growth. This signifies a noteworthy trend of increasing monetization across other casual and midcore games, highlighting Indian gamers’ experimentation with newer Intellectual Properties (IPs).
To gain a comprehensive understanding of gamer and non-gamer motivations, behaviors, preferences, and monetization propensities, a survey was conducted involving 2,317 respondents across diverse demographics. The findings revealed a gaming community dominated by men, constituting 59 percent, while women accounted for 41 percent. Half of the gamers fell within the age group of 18-30 years, portraying a youthful demographic at the forefront of the industry’s growth.
Moreover, the gaming landscape is witnessing a geographic shift, with a notable increase in gamers from non-metro cities. This share has surged from 57 percent in 2022 to an impressive 66 percent in 2023, showcasing the industry’s expanding reach beyond the confines of major metropolitan areas.
The Indian gaming industry’s remarkable ascent, driven by diverse factors, sets the stage for an exciting future, promising continued innovation and economic contributions on an unprecedented scale.