Lumikai & Google: Indian Gaming Market to Grow to $9.2B by 2029
The report is picturing a bright future for the Indian gaming market, but now, the major part of it is real-money gaming.
Overall market state
India's gaming market is estimated to reach $3.8 billion in 2024, accounting for 30% of the entire "new media" market, which includes video/OTT, social media, animation, and VFX services, and audio.
It's important to note that as of 2024, 63% of India's gaming market consists of Real-Money Gaming.
By the 2029 fiscal year, the Indian market is expected to reach $9.2 billion, showing a 20% 5-year compound annual growth rate (CAGR). In-game purchases will grow the fastest (44% CAGR), followed by advertising (15% CAGR). The RMG segment's growth will slow down to 8% per year.
By 2029, the size of the traditional gaming market in India is expected to be almost twice the size of the RMG segment.
In 2024, India will have 591 million gamers. This is the second-largest market in the world for game downloads, 3.5 times larger than the USA and Brazil. The average weekly gaming time increased from 10 hours in 2023 to 13 in 2024.
Revenue
Revenue from IAP (In-App Purchases) in mid-core games grew by 53% year-over-year. The biggest growth was seen in Battlegrounds Mobile India, Garena Free Fire Max, and Clash of Clans, speaking of midcore.
IAP revenue for casual and hypercasual games grew by 10%.
Changes in RMG game regulations in India led to a 50% decrease in profitability and a 30% decrease in margins. 25% of companies in the segment reported financial difficulties. Despite this, the segment grew by 20% in 2024.
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In 2024, the annual ARPPU of an Indian gamer was $22 - 15% more than in 2023.
The number of paying players reached 148 million, which is 25% of the total number of players. More than 60% of RMG players also pay in mid-core games.
❗️The report does not specify whether these figures include the RMG segment.
Player Profile
56% of players are male; 44% are female (up from 41% last year).
43% of players are aged 18 to 30; 29% are 30 to 45; 28% are over 45.
66% of players live outside large metropolitan areas.
The vast majority (81% of players) have smartphones costing no more than $400. 90% of the audience uses no more than 3GB of mobile data per month.
People played 20% more casual games in 2024. 25% of users noted that they started spending more money.
83% of users use UPI and digital wallets for payments. Bank card penetration is 16%.
The highest percentage of paying users is in the western part of India. The most active players are in the south.
47% of users are willing to encounter ads to avoid paying for a subscription.