India’s Gaming Market Set to Reach $8.6 Bn by 2027: Report

India’s Gaming Market Set to Reach $8.6 Bn by 2027: Report

Lumikai released the first look of its annual ‘State of India Gaming FY 2022’ report at the India Game Developers Conference (IGDC) Summit at Hyderabad. 

The report is the most comprehensive ever undertaken across India’s gaming industry, with inputs from a demographic sample of 2,240 respondents, third-party data providers, nterviews with industry leaders, and Lumikai’s proprietary insights. 

Some of the key highlights from the report include: 

  • India has crossed the half-a-billion mark with 507 Mn gamers today in the country. Out of which 120 Mn, almost one-fourth, are paying users. 
  • With 15 Bn downloads, India was the world’s largest consumer of mobile games in FY22.
  • In FY22, mid-core games (like BGMI, and Free Fire) were the fastest growing gaming category achieving growth of 32%, grossing combined revenues of ~$550 Mn.
  • Indians pay for games. Nearly 48% of gamers spend money on mid-core games. 65% of paying gamers claim they have engaged in in-app purchases at least once 
  • Indian gaming companies are on track to raise $513 Mn for the calendar year ’22. Gaming sector funding is up 380% from 2019 and up by 23% from 2020. 
  • Web3 emerged as an increasingly popular technology in games, with 30% of 450 Indian Web3 companies operating in gaming. Web3 games in India have raised ~USD 400 Mn in funding (2019-22). 
  • India-based content is growing in popularity with 80% of gamers showing a proclivity to play games based on Indian intellectual property. 
  • The number of female gamers in India is on the rise. Male: female ratio of surveyed gamers yielded a 60:40 ratio, equally split between metro and nonmetro cities

Sharing his thoughts on the report, Justin Shriram Keeling, Founding General Partner, Lumikai said, “India’s gaming industry this year hit major inflection points, registering strong growth across the board. India crossed half a billion gamers in FY22, up from 450 Mn the year prior. Industry growth is expected to be fuelled by a rapidly increasing gamer base, higher conversion to paid users, and increasing sophistication of Indian gamers. With the market now truly mainstream, we are thrilled to be at the forefront of investing in one of the fastest growing and most dynamic sectors in digital India.”

Commenting on the state of the gaming ecosystem in India, Salone Sehgal, Founding General Partner, Lumikai said, "The last 28 months have been watershed years in terms of attracting VC investment of over $2.6Bn in the Indian gaming landscape. Sustained capital investment and liquidity outcomes in the form of strategic exits valuing $750M+, multiple unicorns, and a publicly traded company have heightened the interests of entrepreneurs and investors alike. This sustained momentum should further drive entrepreneurial ambition and innovation in the Indian gaming industry."

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