Unveiled: Insights on India's Projected $9.2 Billion Gaming Market
Lumikai Unveils State of India Interactive Media and Gaming Report
Lumikai, India's leading interactive media and gaming venture capital fund, has released its annual market intelligence report, titled "State of India Interactive Media and Gaming Report." The report offers insights into the key findings and trends shaping India's burgeoning interactive media and gaming industry.
According to the report, India's gaming sector has surged to $3.8 billion, with a staggering 591 million active gamers as of FY24. This represents a significant increase from 300 million in 2019, with 44% of these gamers being female and 66% hailing from non-metro areas. Each user spends an average of 10–12 hours per week gaming, indicating high engagement levels.
The report also highlights the growth of the gaming industry, with the sector projected to reach $9.2 billion by FY29, growing at a compound annual growth rate (CAGR) of around 20%. The real-money gaming (RMG) segment contributes about $2.4 billion to this total.
Beyond mobile gaming—which dominates downloads and player base—the industry is diversifying with the growth of esports, live events, and streaming platforms integrating gaming content. The esports industry alone is expected to grow to $140 million by 2027, with 1.5 million esports players.
The development ecosystem in India is also expanding, with the number of game development studios increasing from 15 in 2009 to 275 by 2021. There is an increasing presence of global gaming companies such as Ubisoft and Microsoft opening offices in India, alongside strong growth in local studios. Indian companies are focusing more on original IP development and global publishing strategies, as seen with studios like SuperGaming planning international rollouts.
Regulatory developments are also shaping the industry, with the Indian government introducing amendments to regulate real-money gaming and betting, aiming to impose a uniform framework. Penalties have been proposed for unregistered platforms, reflecting increased attention on governance in this space.
The report serves as an authoritative resource for understanding India's gaming landscape and is frequently referenced by government bodies such as MEITY, CII, FICCI, and various state governments. The report was developed in collaboration with Google and Deloitte.
Other key statistics revealed in the report include:
- In-app purchases grew by 41% year-on-year.
- 148 million users make in-game purchases, with 8 million new paying players added in FY24.
- Gaming accounted for 30% of the $12.5 billion new media revenue pie in FY '24.
- The average revenue per paying user (ARPPU) grew 15% to reach $22.
- 83% of gamers prefer UPI or digital wallets to make in-game payments.
The report was launched at Lumikai Insignia, a summit that brought together global industry leaders such as Padma Shri SS Rajamouli, Abdullah Alorainy, Cevat Yerli, and Raja Koduri. Salone Sehgal, Founding General Partner at Lumikai, stated that Insignia was a platform for meaningful dialogue and collaboration among technology visionaries and investment veterans.
Vodafone India is also planning to enter the e-gaming market in India, aiming to capitalize on the growing trend. Meanwhile, Nazara Technologies' subsidiary, Datawrkz, has made an acquisition, further consolidating its position in the industry.
In conclusion, the report outlines a rapidly expanding and evolving gaming sector propelled by mobile penetration, rising revenue streams from in-app purchases and advertising, growing developer ecosystems, and emerging global ambitions, balanced against regulatory developments and market maturity challenges. The report underscores India's potential to become a major player in the global gaming industry.
- The growth of the gaming industry in India is not limited to mobile gaming, as the report predicts that the esports industry alone will reach $140 million by 2027, with 1.5 million esports players.
- Technology plays a crucial role in the expanding gaming sector, with the average user spending an average of 10–12 hours per week gaming, and in-app purchases growing by 41% year-on-year, indicating the impact of technology on consumer behavior.
