Current state of the market
India’s online gaming market will be valued at USD 3.49 billion by 2024, and reach USD7.24 billion by 2029, growing at a compound annual growth rate (CAGR) of 15.68% during the forecast period from 2024 to 2029. This projection is indicative of immense expansion in the market, driven by increasing penetration of smartphones, availability of low-cost high-speed internet and rising interest in e-sporting activities, and online games. Moreover, India is anticipated as one of the top destinations for gaming with one of the biggest young and technology savvy populations making it an essential audience for creators or publishers making online games.
New trends and genres
The rise of genres and game trends in 2024 is changing the Indian online gaming market. The most popular genres are still shooters and sports games like FIFA, but there’s also an increasing interest in role-playing games. In particular, mobile devices have played a major role in making this happen as they have become easy-to-use and accessible platforms for gamers. Social networks too help to spread online games within crowds of players who share interests in some products’ fan clubs. For instance, the Indian online gaming market has been marked by increased interest in mobile and social interaction fueled by technological innovation and widespread access to high-speed internet.
Technological innovations
In 2024, the Indian online gaming market is poised for a technological explosion courtesy of virtual reality (VR) and augmented reality (AR) advancements and artificial intelligence (AI). Game players are provided with immersive virtual reality experiences through VR and AR which offer new levels of interaction and realism transforming their perceptions about gameplay. Artificial intelligence is being used in designing smarter virtual environments that are adaptable to player’s moves as they occur. The improvement of game engines and cloud technologies has made it possible for the high-quality game experience to be accessed in weaker processing devices hence making advanced gaming technology available to many people. All these not only result in better user experiences but also create new opportunities for video game developers in India thus fueling further growth and development within this industry.
Play culture and community
The gaming scene and community in India has experienced amazing growth and transformation, especially with regards to eSports and streaming platforms. It is projected that the e-sports audience will reach 85 million by 2025, which shows how much this kind of entertainment has grown. The expected revenue from streaming and advertising in 2025 is INR 6.5 billion (63,8mln GBP). These figures show how fast the Indian gaming industry has grown and become an important part of entertainment and culture. The growth of eSports & streaming platforms not only strengthens the formation of stronger communities around online gaming, but also changes public perception about gaming making it more than just a hobby while converting it into a profession that can pay very well as well. Online casinos and sports betting, which are part of online gaming, are also growing rapidly in the country. You can read more about it on the CasinoSS website.
Economic aspects
Due to the expected increase in investment and funding, as well as increased contribution to the economy and employment generation, Indian Gaming industry’s 2024 economic proposition appears vibrant. In 2020, Lumikai invested $50 million through its Fund 2 alone. This suggests greater investor interest in Indian gaming sector exemplified by a growth of 20% on mobile gaming spending within India compared to a global decline of 2% in 2023.
The Indian gaming industry has received $2.8 billion from investors both domestic and foreign over the last five years, with funding increasing by 380% compared to 2019 and by 23% to previous year. The sector is estimated to grow at a compound annual growth rate of about 20%, reaching INR231 bn ($3bn)in FY25. Besides, three gaming unicorns have emerged in India – Game24x7, Dream11and Mobile Premier League – thus underscoring the potential of this market.
This information demonstrates an active video game industry that is growing more popular among local and foreign stakeholders with significant implications on national economy; for instance it creates jobs and boosts technological advancement.
Challenges and obstacles
In 2024, there are certain challenges and obstacles faced by the Indian online gaming industry which can hinder its growth. Major challenges include regulatory and ethical issues such as gambling addiction, mental health problems, suicides, cybercrimes, privacy and data security. In addition to these issues of fraud in gambling and betting especially in illegal markets abroad is accompanied by a large number of digital transaction that may lead to financial exploitation. Poor regulation adds to the problems thus confusing many users who cannot tell apart between the genuine gaming platforms from the illegal ones.
As far as infrastructure and internet accessibility are concerned, India has witnessed massive rise in internet users together with mobile phone penetration; however, quality connectivity and high speed internet access problem still remains for remote rural areas where it would be difficult to have reliable services for adequate online gaming support. These factors could limit a significant proportion of the population from accessing online gaming due to increasing popularity and resource-intensive nature of mobile games.
Therefore, a holistic strategy is needed to foster the sustainable development of the online gaming industry in India by enhancing legislative infrastructure for regulating the sector, reinforcing data’s safety and privacy measures while providing more advancement and access to internet connectivity through enhanced infrastructure and technology.
