India’s gaming market soars: $868M revenue expected in 2023

A recent analysis by Niko Partners sheds light on the thriving gaming market in India, projecting remarkable growth in revenue and the number of gamers. India’s gaming industry is on a meteoric rise, with expectations of reaching a revenue of $868 million in 2023, marking a substantial 21.2% year-on-year increase.

India has emerged as the fastest-growing gaming market, both in terms of gamers and revenue. The forecast suggests that by 2027, the Indian gaming market could reach a staggering value of $1.6 billion, reflecting a compound annual growth rate (CAGR) of 10.1% over five years.

The number of gamers in India is set to rise significantly, reaching 444.4 million in 2023, a 12.1% year-on-year increase. Looking ahead, the gaming community in India is projected to swell to 641.2 million by 2027, maintaining the same CAGR of 10.1%. This astonishing growth represents a 343% increase from 144.9 million Indian gamers in 2017.

Mobile gaming reigns supreme in India, capturing a significant 96.8% of the country’s gaming landscape. Several factors contribute to this dominance, including the affordability of mobile devices compared to other gaming platforms and the availability of a wide range of titles, including free-to-play games. Additionally, the increasing accessibility of the internet across the nation has ushered in more users into the world of gaming.

The popularity of mobile gaming is underscored by the fact that an estimated 31% of Indian gamers are expected to spend money on video games in 2023, with an average revenue per paying user reaching $6.38. This increase in spending among gamers indicates substantial revenue potential, particularly in the context of India’s fondness for free-to-play games.

The report points out the positive impact of the return of Battlegrounds Mobile India (BGMI) and Garena Free Fire to the Indian market, signaling a bright future for the industry. These developments demonstrate that foreign game makers can make significant strides in India, despite previous challenges related to national security concerns and their Chinese affiliations.

India’s gaming market is experiencing rapid growth, with promising revenue prospects and a burgeoning gaming community. As the industry continues to evolve, it presents an enticing landscape for both domestic and international game developers. These results came as no surprise as India was reportedly narrowing its gap with China (mobile gaming industry leader) in late 2022. 

Written by Gizem Yılmaz


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