Indian Gaming India’s Gaming Market Hits $2.6Bn; Projected to reach $8.6Bn by 2027: Report
India was the world’s largest consumer of mobile games in FY22 with 15 billion downloads, according to a report by an Indian Gaming, and Interactive Media Venture Capital.
In its annual ‘State of India Gaming FY 2022’ report released last week at India Game Developers Conference (IGDC) Summit in Hyderabad, Lumikai covered a demographic sample of 2,240 respondents, third-party data providers, interviews with industry.
India has crossed the half-a-billion mark with 507 Mn gamers today in the country. Out of which 120 Mn, almost one-fourth, are paying users, according to the report, which Lumikai said is the most comprehensive ever undertaken across India’s gaming industry.
In FY22, mid-core games (like BGMI, and Free Fire) were the fastest growing gaming category achieving growth of 32 percent, grossing combined revenues of approximately $550 million.
Indians pay for games. Nearly 48 percent of gamers spend money on mid-core games. As may as 65 percent of paying gamers claim they have engaged in in-app purchases at least once.
Indian gaming companies are on track to raise $513 million for the calendar year ’22. Gaming sector funding is up 380 percent from 2019 and up by 23 percent from 2020.
Web3 emerged as an increasingly popular technology in games, with 30 percent of 450 Indian Web3 companies operating in gaming. Web3 games in India have raised nearly USD 400 million in funding (2019-22).
India-based content is growing in popularity with 80 percent of gamers showing a proclivity to play games based on Indian intellectual property.
The number of female gamers in India is on the rise. Male: female ratio of surveyed gamers yielded a 60:40 ratio, equally split between metro and nonmetro cities, accordig to the Lumikai report.
Sharing his thoughts on the report, Justin Shriram Keeling, Founding General Partner, Lumikai said, “India’s gaming industry this year hit major inflection points, registering strong growth across the board. India crossed half a billion gamers in FY22, up from 450 Mn the year prior. "
Industry growth is expected to be fuelled by a rapidly increasing gamer base, higher conversion to paid users,
and increasing sophistication of Indian gamers.
"With the market now truly mainstream, we are thrilled to be at the forefront of investing in one of the fastest growing and most dynamic sectors in digital India,” he added.
Commenting on the state of the gaming ecosystem in India, Salone Sehgal, Founding General Partner, Lumikai said, "The last 28 months have been watershed years in terms of attracting VC investment of over $2.6Bn in the Indian gaming landscape. Sustained capital investment and liquidity outcomes in the form of strategic exits valuing $750M+, multiple unicorns, and a publicly traded company have heightened the interests of entrepreneurs and investors alike."
This sustained momentum should further drive entrepreneurial ambition and innovation in the Indian gaming
industry, he added.
The report projects the Indian gaming market would reach $8.6Bn by 2027.
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