By Sagar V. Mankar According to the latest Lumikai Interactive Media and Gaming Report 2024, India’s gaming market is set for explosive growth, projected to reach $9.2 billion by FY2029 at a 20% CAGR. The sector has already exceeded expectations, hitting $3.8 billion in FY2024.
Key Market Highlights
Market Size and Growth
- Gaming represents 30% of India’s broader new media market
- The market grew from $3.1B in FY2023 to $3.8B in FY2024
- In-app purchases showed the strongest growth at 41% year-over-year
User Base and Demographics
- Total gamers in India reached 591 million in FY2024, adding 23M new gamers
- 148 million are paying users, an increase of 8M from the previous year
- 44% of gamers are women, up from 41% last year
- 66% of gamers come from non-metro cities
- 43% of gamers are first-time earners aged 18-30
Engagement Metrics
- Average weekly gaming time increased by 30% (from 10 to 13 hours)
- India ranks as the world’s second-largest market for mobile game downloads
- Download volume is 3.5x larger than the US and Brazil
Monetization Trends
- Annual ARPPU (Average Revenue Per Paying User) reached $22 in FY2024, up 15%
- 25% of users make in-game payments
- 83% of users prefer UPI or digital wallets for in-game purchases
- Midcore games saw 53% year-over-year revenue growth most in BGMI and Free Fire
Regional Insights
Payment Preferences by Region
- West India shows highest propensity to pay (31% of users)
- South India: 20% paying users
- North India: 20% paying users
- East India: 23% paying users
Genre Preferences
- Casual games are universally popular across all regions
- RMG (Real Money Gaming) shows higher interest in North and South India
- Midcore games maintain a strong second preference across regions
Government Support and Industry Recognition
Key Developments
- PM Modi recognized gaming as a sunrise sector
- Esports officially brought under the Ministry of Youth Affairs and Sports
- National AVGC Centre of Excellence to be established in Mumbai
- State-level AVGC XR policies announced by Kerala & Karnataka
Regulatory Framework
- A clear distinction made between online games and real money games
- 28% GST on deposits for real money games (effective October 2023)
- 18% GST on in-app purchases within app stores
Future Growth Drivers
Key Factors Supporting Growth
- Increasing smartphone penetration
- Growing digital payment adoption
- Rising disposable income among young earners
- Government support and clear regulatory frameworks
- Increasing investment in local game development
Challenges to Address
- GST impact on RMG sector profitability
- Need for more original Indian IP in gaming
- Balance between regulation and industry growth
- Competition with global gaming markets
The report indicates that India’s gaming market is maturing rapidly, with sophisticated user behaviors emerging across different segments. The combination of government support, clear regulatory frameworks, and a growing user base suggests strong potential for sustained growth through 2029.