India’s gaming market is poised for significant expansion, with projections estimating it will reach $3.8 billion by 2024 and $9.2 billion by the fiscal year 2029. According to a report by Lumikai and Google, this growth marks a 20% compound annual growth rate (CAGR) over five years. The gaming industry’s share of the broader "new media" market, which includes video streaming, social media, animation, and audio services, is expected to account for 30% by 2024.

A key component of the market, real-money gaming (RMG), currently constitutes 63% of the industry in 2024. However, the growth rate of the RMG segment is predicted to slow to 8% annually by 2029. This deceleration contrasts with the rapid growth anticipated in other areas of the gaming industry. By the end of the decade, the traditional gaming market is expected to nearly double the size of the RMG segment, signaling a shift in consumer preferences and industry focus.

India's New Media Market Size

Revenue Growth and Market Dynamics

The report highlights notable trends in revenue generation within India’s gaming market. In-game purchases (IAP) are projected to grow at a remarkable CAGR of 44%, driven by the popularity of mid-core games like Battlegrounds Mobile India, Garena Free Fire Max, and Clash of Clans. These games experienced a 53% year-over-year increase in IAP revenue in 2024. Casual and hypercasual games also contributed to the market’s growth, with a 10% rise in IAP revenues during the same period.

Advertising revenue is set to grow at a 15% CAGR by 2029, reflecting the increasing role of ad-based monetization models. While RMG continues to be a significant part of the market, recent regulatory changes have impacted the segment's profitability, causing a 50% decline and resulting in financial challenges for 25% of companies. Despite these hurdles, the RMG sector still achieved a 20% growth rate in 2024, demonstrating resilience amid evolving market conditions.

Gaming Market Size by Genre

A Deep Dive into Player Demographics

India’s gaming audience is diverse and rapidly expanding, with the number of gamers expected to reach 591 million by 2024. This positions India as the second-largest market globally for game downloads, outpacing countries like the United States and Brazil. Players in India are also spending more time gaming, with average weekly playtime increasing from 10 hours in 2023 to 13 hours in 2024.

The gaming population is split nearly evenly between genders, with males making up 56% of players and females accounting for 44%, up from 41% the previous year. Younger gamers aged 18 to 30 represent the largest demographic at 43%, followed by those aged 30 to 45 at 29%, and players over 45 years old making up 28% of the total. A significant portion of gamers, 66%, live outside of large metropolitan areas, highlighting the widespread appeal of gaming across rural and semi-urban regions.

Affordability and accessibility are central to the gaming experience in India. The majority of players, 81%, use smartphones costing no more than $400, and 90% of users rely on mobile data plans that consume less than 3GB per month. These factors, coupled with the increasing availability of affordable smartphones and data plans, have played a crucial role in driving the growth of the gaming market.

Demographics and Game Preferences 

Payment Preferences and Regional Trends

Digital payment methods dominate the gaming ecosystem in India. Around 83% of gamers use UPI and digital wallets for transactions, while only 16% rely on bank cards. This preference for digital payment options reflects broader trends in India’s fintech landscape. Regional differences also influence gaming behaviors, with western India reporting the highest proportion of paying users and southern India showing the most active player base.

Player spending habits are evolving, with 25% of users indicating that they are investing more money in gaming than before. By 2024, the annual average revenue per paying user (ARPPU) reached $22, representing a 15% increase from the previous year. The number of paying players rose to 148 million, accounting for 25% of the total gaming population. Interestingly, over 60% of RMG players also engage in spending on mid-core games, reflecting overlapping preferences across segments.

Regional Trends

Relevance to Web3 Gaming

The rapid growth and evolving dynamics of the Indian gaming market have significant implications for the development and adoption of web3 gaming. With 591 million gamers by 2024 and a strong preference for digital payment methods such as UPI and wallets, India presents a fertile ground for blockchain-based gaming platforms that offer decentralized ownership, tokenized economies, and play-to-earn models.

The increasing monetization through in-game purchases and the expansion of the traditional gaming segment suggest that players are open to exploring new ways to engage with games, including integrating blockchain technology. Moreover, the rise in younger, tech-savvy gamers, combined with affordable smartphones and low-cost data access, creates a promising environment for web3 innovations to gain traction. As web3 gaming emphasizes transparency, ownership, and earning opportunities, it aligns well with the aspirations of a large portion of India’s gaming audience, making the country a potential leader in the web3 gaming revolution.

Engagement and Payment Behaviours

Future Outlook for India’s Gaming Industry

India’s gaming market is entering a dynamic phase of growth, fueled by advancements in technology, evolving player preferences, and expanding monetization opportunities. While RMG remains a key segment, the rise of traditional gaming and the robust growth of in-game purchases and advertising signal a shift toward a more diverse and sustainable industry landscape.

As the market progresses toward its projected value of $9.2 billion by 2029, it will be essential for stakeholders to adapt to regulatory changes, leverage technological innovations, and address the diverse needs of the growing player base. The Indian gaming industry is well-positioned to become a global leader, with its expansive user base and innovative monetization strategies driving its evolution.

Source: Lumikai and Google