India's nascent online gaming industry is witnessing heightened interest in recent years, making it one of the biggest global markets for gaming. A young population is fuelling this growth, with increased disposable incomes, new game genres, and a rise in tablet and smartphone users making gaming more easily accessible.

A recent report by Lumikai Investment Advisors says that India's gaming market has touched US $ 2.6 billion in FY22 and is projected to reach US $8.6 billion in FY27. With 15 billion mobile downloads in FY22, India emerged as the largest consumer of mobile games globally, with a market share of 17%.

The growth in the last two years has led to a renewed interest amongst global investors in the potential of the Indian gaming industry.

Growing need for virtual entertainment

Until recently, online gaming was considered a form of entertainment that was restricted to people staying in the metro and megacities.

However, research reports indicate that the industry's current growth comes primarily from users from Tier 2 and 3 cities. The reason is that mobile internet is becoming increasingly cheaper and more accessible. It is exciting to see the potential it has to shape the future of entertainment and bring people and families together.

Increasing User Base of Smartphones and the Internet

Around half of all smartphone users in India actively play mobile games. These include casual gamers, real-money gamers, online fantasy sports, and e-sports.

Mobile gaming has become one of the biggest growth drivers of the gaming and esports industries.

While the number of Indian gamers playing mobile game titles is obviously expected to increase, its growth and popularity will be further fuelled by the increasing availability of affordable 5G plans and devices in India.

Gamers can anticipate access to higher speeds, lower latency, and improved connection stability when playing their favourite mobile games in 2023, given the rising spread of 5G networks in India. As a result, mobile gaming may become even more popular for Indian players, thus boosting its appeal.

The increasing use of smartphones and digital technologies in India is leading people to adapt to online gaming as a passion and hobby and, for some, a second income. The gaming industry is expanding not merely because more people are using smartphones and the internet but also because of the improved quality of games.

Ease to Use Apps

India is currently fifth in the world in mobile gaming markets, with over 220 million gamers spending an average of 42 minutes daily on their mobile devices. Approximately 65% of gamers have engaged in in-app purchases at least once.

Not only does online gaming offer avid gamers a wide array of titles to choose from, but they also draw more takers by keeping them engaged with little or no lag with new features to make the experience more engaging to users.

The uninstallation rate is very high in online gaming, with users tending to migrate to different and better apps. Thus, to avoid such consequences, game developers are slowly shifting and upgrading to 'ease to use' apps which will ease out uninterrupted gameplay for gamers.

Furthermore, the growth of predictive apps is part of a greater trend of companies seeking new solutions to building online communities. India is expected to become one of the world's leading markets in the gaming industry.

According to a KPMG report, growing exponentially for the last five years, the Indian market is expected to grow three-fold in value and reach US $3.9 billion from the present US $1. 71 billion by 2025. Mainly triggered by Covid-19, online gamers grew 8% from 360 million in 2020 to 390 million in 2021. The pandemic led to increased time spent gazing at screens, and the gaming industry benefited greatly from this craze.

Boosting the growing e-sports ecosystem

India recognised e-sports as a multi-sport event on December 23, 2022, giving it a significant boost by incorporating it with the nation's traditional sports disciplines. The Ministry of Youth Affairs and Sports included esports in the list of "Multi-sport Events."

This is a significant step forward in encouraging the growth and inclusion of virtual sports in the Olympic movement and further interacting with competitive gamers. The event will debut at the Asian Games in Hangzhou, China, in 2023. As a result, it will help create a vibrant and competitive gaming community in India.  

Conclusion

The gaming market in India is going through an exciting period. In India, there are 400 million gamers. The Indian gaming industry is expanding by 27% annually.

While there are millions of gamers in India, it is crucial to remember that many of them play titles that are owned and run by multinational corporations from China and the US. Indian gaming businesses have only recently created games that have gained popularity among Indian players. Numerous gaming technology startups have now demonstrated their capacity and proficiency in creating top-notch competitive online games.

It is essential to encourage innovation and have the appropriate rules in place if the Indian gaming sector is to reach its full potential.