India’s Gaming Sector to Reach $9.2B by FY29

This momentum has naturally attracted both entrepreneurial talent and venture capital interest to this lucrative space…reports Asian Lite News

Led by enthusiasts from non-metro cities, India’s gaming sector is projected to grow to $9.2 billion by FY29 from the current $3.8 billion, according to a report on Monday.

Female gamers now make up 44 per cent of the nation’s 591 million gaming population and 66 per cent of gamers were from non-metro cities, with 43 per cent of them being first-time earners in the 18-30 age group.

This momentum has naturally attracted both entrepreneurial talent and venture capital interest to this lucrative space, according to the report by Lumikai, a leading interactive media and gaming VC fund.

Average weekly time spent on gaming increased by 30 per cent to 13 hours, doubling the time spent on social platforms. India is currently the world’s second-largest mobile gaming market, recording 15.2 billion downloads – 3 times the combined volume of Brazil and the US.

“From a 30 per cent increase in average weekly gaming time to a sophisticated user base of 148 million paying users contributing to an average revenue per paying user (ARPPU) of $22 (about Rs 1,800), the findings garnered global recognition and conveyed market readiness for the next phase of growth,” said Salone Sehgal, Founding General Partner at Lumikai.

Eight million new paying users were added in FY24, taking total paying gamers to 148 million, according to the report that reviewed India’s new media market worth $12.5 billion in FY24, with 30 per cent share accrued to the gaming sector.

In-app purchases, propelled by mid-core games, grew by 41 per cent year-on-year, and continues to be the fastest growing slice out of the $3.8 billion revenue pie for FY24.

According to the report, 64 per cent of paying users who play real-money gaming (RMG) formats also pay for mid-core games, suggesting a high degree of overlap in gamer personas and migrating preferences of gamers.

Around 25 per cent of gamers said they spent money in games, consistent with FY23, with 83 per cent preferring UPI or digital wallets to make in-game payments.

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