Over the years, India has emerged as one of the largest gaming markets in the world. According to Lumikai’s latest report, the Indian gaming industry reached a valuation of $3.8 billion in FY24 and is projected to soar to an impressive $9.2 billion by FY29.
This rapid growth is fueled by India’s expanding gaming community, now numbering 591 million active users, including 23 million new gamers added in the past year. Notably, 44% of these gamers are women, showcasing the increasing diversity within the gaming space.
Gaming’s Role in the New Media Economy
Lumikai’s report highlights that gaming now contributes 30% of India’s $12.5 billion new media revenue, which encompasses video content, animation, audio streaming, and social media. The surge in in-app purchases, especially within mid-core games, has driven significant revenue growth, climbing 41% year-on-year in FY24.
The industry’s profitability has also been boosted by a 15% rise in Average Revenue Per Paying User (ARPPU), which now stands at $22. Additionally, 148 million users engage in in-game purchases, with 8 million new paying players joining the ecosystem over the past year.
Non-Metro Cities Lead the Charge
A remarkable 66% of gamers now come from non-metro cities, reflecting the widespread reach of gaming beyond urban areas. Furthermore, 43% of these gamers are first-time earners aged between 18 and 30, underlining the sector’s popularity among young professionals.
“India has firmly positioned itself as a global gaming powerhouse with 590 million gamers and is set to achieve robust growth over the next five years,” said Aditya Swami, Regional Director at Google Play.
Gaming Habits Surpass Social Media Usage
Indian gamers spend an average of 13 hours per week gaming—double the time spent on social media platforms. In FY24, India ranked as the world’s second-largest mobile gaming market, with 15.2 billion downloads, surpassing the combined download volumes of Brazil and the US.
The Future of Gaming in India
The overlap between Real Money Games (RMG) players and mid-core gamers, combined with the increasing adoption of UPI and digital wallets for in-game transactions, illustrates the evolving preferences of Indian gamers.
With such promising trends, India’s gaming industry is on track to redefine entertainment, presenting lucrative opportunities for entrepreneurs and investors. By FY29, India’s gaming landscape could set a global benchmark for innovation and growth.
