Indian Gaming Sector Anticipated to Reach $4.5 Billion by 2025, Predicts AIGDF
Published on: 21st November, 2024
In the bustling landscape of India, the gaming sector is experiencing a remarkable surge, positioning it as a significant player in the global arena. Over the past few years, the industry has attracted an impressive $2.78 Billion in investments, as reported from FY20 to FY24 YTD.
The growth of India's gaming industry is driven by a perfect storm of factors. Widespread internet access, affordable smartphones, and low data costs have transformed mobile phones into the primary gaming device for most users. This digital revolution has led to a surge in gaming engagement, especially among younger demographics, with the total gamer population increasing from around 250 million in 2018 to over 433 million in recent years.
The industry's revenue has seen strong growth, with real money gaming comprising a substantial portion, contributing significantly to tax revenues and job creation. In fact, employment in the Indian gaming industry is projected to grow by 250,000 jobs.
Investments in India's gaming market are bolstered by the enormous and growing user base, increasing smartphone adoption, and enhanced internet infrastructure. The declining cost of dataโfrom โน250 per GB in 2015 to โน10 per GB in 2025โand the availability of budget-friendly gaming phones have lowered entry barriers for players, leading to an average gaming time of 13 hours per week.
The government's support is a crucial catalyst for this growth. Progressive regulations such as the Intermediary Guidelines and Digital Media Ethics Code Rules issued by the Ministry of Electronics and Information Technology (MeitY) in 2021 aim to clarify the legal environment for online gaming, enhance user safety, and encourage investor confidence. Additionally, tax policies have been evolving, with recent discussions involving increasing the online gaming tax rate to better capture substantial market revenues without stifling growth.
Notably, the Indian Government, including Prime Minister Narendra Modi, is supporting the growth of the gaming industry. Companies like Nazara Technologies, a popular gaming company in India, have been investing heavily in gaming entities for over a year. The All India Game Developers Forum (AIGDF) has also released a report predicting substantial growth for the Indian gaming industry, with the market expected to reach $3.9 Billion by 2025.
Karnataka, particularly Bangalore, is seen as a potential center for the gaming boom in India and globally. Roy D'Silva, a published author with a decade-long experience in various beats, including Bollywood, OTT, and now poker, aims to be at the forefront of a significant story in the poker world, contributing to the growing narrative of India's burgeoning gaming industry.
As the global video gaming market, valued at $199.74 Billion in 2022, is projected to reach $307.19 Billion by 2029, India's gaming sector is poised to make a significant impact, outpacing many other entertainment sectors. With the right blend of technology, politics, and vision, India's gaming industry is set to captivate the world.
[1] KPMG Report on India's Gaming Industry (2022) [2] NASSCOM Report on India's Gaming Industry (2023) [3] AIGDF Report on India's Gaming Industry (2024) [4] The Economic Times, "Online Gaming Sector in India: Growth, Challenges, and Opportunities" (2023)
- The boom in India's gaming industry extends beyond traditional casino-and-gambling, encompassing various casino games, lotteries, sports, and sports-betting.
- Las Vegas, renowned for its big-wins and casino culture, has taken notice of India's rising gaming trends, with casino personalities keen on partnering with Indian gaming entities.
- Conscientiousness in the gaming sector is paramount, as responsible-gambling initiatives strive to ensure the enjoyment of gaming does not lead to harm.
- With the global gambling trends consistently evolving, the Indian gaming industry is collaborating with international players to introduce innovative games and platforms.
- As the gaming industry continues to flourish, it is expected that the employment in casino-related sectors will grow substantially, creating job opportunities for numerous individuals.
- The rise of India's gaming sector has attracted the attention of various investors and industry experts, prompting a wave of investments in the gaming market, aiming to capitalize on the burgeoning industry.
