India’s Gaming Industry: 19% Revenue Growth in 2023, $3.1B Generated

In recent years, India’s gaming industry has attracted considerable attention due to its massive user base, youthful audience, and potential to become one of the largest markets in the world. However, Lumikai, a notable Indian venture capital fund, has now adjusted its growth projections for the country’s gaming sector, presenting a somewhat more measured outlook.

Previously, Lumikai had estimated that the Indian gaming industry would generate a significant $8.6 billion in revenue by the year 2027, a forecast that was in line with estimates from market intelligence firm MoEngage. These projections were underpinned by the rapid growth and increasing engagement of Indian gamers. However, Lumikai’s most recent report has recalibrated these numbers, now forecasting $7.5 billion in revenue by the financial year 2028, extending the timeline by one more year for this target to be achieved.

Despite this adjustment, it is essential to note that the Indian gaming industry continues to demonstrate consistent growth. In the financial year 2023, the sector generated $3.1 billion in revenue, marking a substantial 19% increase from the previous year’s $2.6 billion. This impressive growth trajectory suggests that while the industry is thriving, it may not be expanding as rapidly as previously anticipated.

The report highlights that out of the estimated 568 million gamers in India, a notable 140 million of them actively contributed to the industry’s revenue by making in-game purchases. This figure represents a 17% surge compared to the preceding year. The upshot of this is that now more than 50% of India’s internet users are actively engaged in gaming, underscoring the sector’s significance within the country’s digital landscape.

The study further underscores that mobile gaming remains a cornerstone of this growth story. Lumikai emphasizes the pivotal role played by mobile-centric casual and mid-core game genres, with in-app purchases and in-game advertising being the driving forces behind this trend. A staggering 96.8% of Indian gamers are using mobile devices to access their favorite titles, confirming the immense popularity of mobile gaming in the country.

Moreover, the report identifies a shift towards non-metro gamers, who now constitute 66% of the total gaming population in India, reflecting a notable increase from the 57% reported in the previous year. This trend suggests that the gaming industry’s reach has now extended beyond major urban centers, offering new avenues for growth and engagement.

In demographic terms, approximately half of these non-metro gamers fall within the age bracket of 18 to 30, with 60% of them being male. Lumikai’s findings underscore the continued potential for growth in India’s dynamic gaming market. Moreover, another recent study has illuminated the thriving gaming landscape in India, with projections indicating remarkable growth in revenue and the number of gamers. India’s gaming industry is experiencing a meteoric ascent, with expectations of achieving a revenue of $868 million in 2023, representing a substantial 21.2% year-on-year increase.”

Written by Gizem Yılmaz


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