India’s Gaming Industry Projected to Cross $9.2 Billion Valuation In Next Five Years: Report

Over the years, India has transformed into one of the biggest gaming markets globally. According to Lumikai's latest report, the Indian gaming industry has reached a valuation of $3.8 billion in FY24 and is projected to cross a staggering $9.2 billion by FY29.

This remarkable growth is down to India's growing gaming population of 591 million active users. Out of these 591 million users, 23 million users were added last year. The report further stated that 44% of India's gamers consists of women. Here is a detailed dive into the trends observed from the report.

Gaming’s Role in the New Media Economy

As per Lukmikai's report, Gaming now accounts for 30% of India’s $12.5 billion new media revenue, which includes video content, animation, audio streaming, and social media. The rise of in-app purchases, particularly in mid-core games, has been a significant driver of revenue, growing by 41% year-on-year in FY24.

Average Revenue Per Paying User (ARPPU) increased by 15% to reach $22, further boosting the industry's profitability. Moreover, 148 million users now engage in in-game purchases, with 8 million new paying players joining the ecosystem in the past year.

Non-Metro Cities Take the Lead

Interestingly, 66% of gamers hail from non-metro cities, showcasing the deep penetration of gaming beyond urban centres. Additionally, 43% of gamers are first-time earners aged between 18 and 30, emphasizing the sector's appeal to young professionals.

"India has established itself as a global gaming powerhouse with 590 million gamers and projected to deliver strong growth over the next five years," said Aditya Swami, Regional Director at Google Play.

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India’s Gaming Habits Outpace Social Media Usage

The average Indian gamer spends 13 hours a week gaming, double the time spent on social platforms. With India ranking as the world’s second-largest mobile gaming market, recording 15.2 billion downloads in FY24, the country outpaced the combined download volumes of Brazil and the US.

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The Future of Gaming in India

The overlap between gamers who engage in Real Money Games (RMG) and mid-core games, coupled with the growing use of UPI and digital wallets for in-game purchases, highlights the evolving preferences of Indian gamers.

With such impressive metrics, India’s gaming industry is poised to redefine entertainment, making it a lucrative sector for entrepreneurs and investors alike. By FY29, the nation’s gaming landscape could stand as a global benchmark for innovation and growth.