Insights Revealed on India's $9.2 Billion Gaming Sector Development Prospects
Lumikai, India's leading interactive media and gaming venture capital fund, has released its annual market intelligence report, titled "State of India Interactive Media and Gaming Report." Based on extensive primary research covering nearly 3,000 mobile users across India, the report provides an authoritative resource for understanding India's gaming landscape.
Explosive Growth and Shifting Trends
The report reveals several key findings and trends about India's interactive media and gaming industry. One of the most significant findings is the rapid growth of the online gaming market, which is expected to more than double in value, crossing around $9.2 billion by FY 2028-29, up from about $3.8 billion in recent years. This growth is driven by mobile gaming and increased internet penetration, especially among youth under 25.
Mobile gaming remains the key growth driver, with a strong emphasis on skill-based, culturally resonant formats. Platforms focusing on skill rather than luck are gaining traction as players seek fair, strategic gameplay and meaningful rewards. Real-money gaming constitutes over 60% of industry revenue, highlighting players’ preferences for fairness, transparency, and tangible incentives in competitive gaming formats.
Esports, Streaming, and Community Focus
The Indian esports sector is projected to grow to approximately $140 million by 2027, with the player base expected to reach 1.5 million. This growth is attracting significant investments and attention from streaming platforms and brands. Streaming platforms are increasingly incorporating gaming content, such as reality competitions, creator-led shows, and esports events, to expand viewership and capitalize on the gaming craze.
Gaming companies are also focusing on Tier 2 and Tier 3 markets, tapping into a large, underserved audience base beyond metropolitan hubs. The report also shows that 66% of gamers were from non-metro cities, with 43% of gamers being first-time earners in the 18-30 age group.
Female Gamers and In-App Purchases
The report also highlights the increasing participation of female gamers in India's gaming industry. Female gamers now constitute 44% of the nation's 591 million gaming population. In-app purchases, propelled by mid-core games, grew by 41% year-on-year in FY '24. The average revenue per paying user (ARPPU) grew 15% to reach $22, and 148 million users make in-game purchases, with 8 million new paying players added in FY24.
The gaming sector's total revenue is currently $3.8 billion, with a projected growth to $9.2 billion by FY29. The report was launched at Lumikai Insignia, an exclusive summit that brought together global industry legends such as Padma Shri SS Rajamouli, Abdullah Alorainy, Cevat Yerli, and Raja Koduri.
In summary, Lumikai’s report emphasizes that India’s interactive media and gaming sector is marked by explosive growth, a shift toward skill-based and immersive content, real-money gaming dominance, esports expansion, and integration with broader entertainment platforms, positioning gaming as a key contributor to India's emerging trillion-dollar digital economy.
[1] Lumikai Press Release
[2] Business Standard
[3] The Economic Times
[4] Financial Express
- The latest Lumikai report foretells an escalation of esports in India, with an estimated worth of $140 million by 2027, drawing investments and attentions from streaming platforms and brands.
- There's a growing interest in personal-finance and product-reviews content among India's mobile users, with YouTube ranked as the go-to platform for such content, as indicated in the "State of India Interactive Media and Gaming Report."
- The rapid growth of the online gaming market in India is not only seen in metropolitan cities but also in Tier 2 and Tier 3 markets, where gamers from non-metro cities account for 66% of the total gamers, according to the report.
- In the realm of smartphones and technology, gadget enthusiasts are increasingly turning to e-commerce sites for shopping due to the convenience of online browsing and easy comparisons among various models, as suggested by the report.
- The ever-evolving lifestyle of Indians has led to a surge in interest in lifestyle-related content, with social media platforms like Instagram and Pinterest emerging as popular spaces for sharing product-reviews and personal experiences, as reported.
- The rising popularity of video-on-demand platforms in India has transformed entertainment and brought a fresh wave of investment opportunities in real-estate, as developers scramble to build soundproof homes to cater to avid movie-goers and gamers, as highlighted in the report.
