Online gaming expected to grow to reach Rs 231 billion by 2025: FICCI-EY
The online gaming industry in India has experienced rapid growth in recent years, and this trend is projected to continue. According to a recent FICCI-EY report, the industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 20% over four years, reaching Rs 231 billion by 2025.
Transaction-based gaming is anticipated to contribute significantly to this growth, expanding at a CAGR of 21% to touch Rs 183 billion and account for 79% of the total segment revenues. Casual gaming is also set to increase, with a CAGR of 15% to reach Rs 48 billion.
Key factors driving this growth include increased access to high-speed internet in India’s Tier-II, III, and rural areas, clarity on new IT rules, conversion of feature phones into smartphones, and the continued growth of digital payments. The advent of 5G and cloud gaming technologies is also bringing more sophisticated games to a wider audience, while the simplification of legislation and regulation, with clarity on permitted games, is leading to more investment in India’s gaming sector.
The Indian government’s recent push towards a digital economy has also been instrumental in boosting the online gaming industry. With these developments, the gaming industry in India is expected to continue its upward trend and present significant growth opportunities for businesses in the coming years.
New monetization models, such as sachet pricing and in-app branded monetization, are driving revenue growth. Additionally, the Indian government’s recent push towards a digital economy has been instrumental in boosting the online gaming industry, presenting significant growth opportunities for businesses in the coming years.
Brands are capitalizing on the popularity of online gaming to connect with audiences. United Colors of Benetton recently debuted in online gaming with a virtual collection specifically for Animal Crossing: New Horizons, available on Benetton Island within the game. Toyota engaged with its audience across Asia by organizing an e-Motorsport event on Gran Turismo, a racing simulation video game, which was live-streamed on multiple platforms.
The popularity of gaming content is also rising in India, as demonstrated by Netflix series such as Arcane (based on Riot Games’ League of Legends) and The Witcher (based on the game series with the same name). The FICCI-EY report identified 12 to 20 hours of game-related premium content generated annually between 2018 and 2021 and expects this trend to continue, with 20-30 hours of premium content based on games produced each year in the future.
In conclusion, the online gaming industry in India is poised for exponential growth, driven by increased internet access, technological advancements, and innovative monetization models. Businesses and brands looking to capitalize on this burgeoning market should stay abreast of these developments and seize the opportunities that lie ahead.
