By Sagar V. Mankar India is on the verge of becoming the largest cloud-streamed gaming (CSG) market within the next decade, according to a report by Bloomberg Intelligence (BI). This growth is being driven by India’s large population of Gen Alpha and Gen Z gamers, its rapid adoption of 5G technology, and the increasing number of professional gamers. The nation’s recognition of esports as an official sporting event in 2022, joining countries like the US, Germany, and South Korea, further underscores this trend.
BI projects India’s average revenue per user (ARPU) in the CSG sector to grow by 15% annually, compared to 10% globally. While India’s ARPU remains relatively low, its vast population could offset this, with BI predicting 56 million monthly active users (MAU) by 2033. In contrast, the US is expected to have 14 million MAU and China 37 million.
Nathan Naidu, a technology analyst at Bloomberg Intelligence, highlighted India’s potential: “Mature CSG markets like the US and China, which contribute to over one-third of global sales, could see marginal declines in their share over the next decade. Emerging markets such as South and Southeast Asia, particularly India, are poised for significant growth due to demographic advantages and the widespread use of gaming as a primary entertainment source.”
Globally, BI predicts that CSG sales could grow at a compound annual growth rate of 28% from 2023 to 2033, surpassing $40 billion. Companies like Microsoft, Nvidia, and Sony are tapping into emerging markets, while Apple’s ecosystem expansion into game-streaming apps signals a shift in the gaming industry. The report also suggests that advancements in generative AI and mobile technology could make traditional gaming consoles obsolete in the future.
India’s professional gaming sector is also contributing to the rise of CSG. Professional gamers in India earn more than double the national per capita income, making gaming a viable career choice. According to an Ericsson ConsumerLab survey, one in five Indian smartphone users would pay a 14% premium for 5G bundles that include gaming, video on demand, and music services. This indicates a strong willingness to invest in premium services, driving ARPU growth over time.
Currently, most CSG services in India rely on ad-supported models, where users watch ads in exchange for free gaming. However, increasing engagement and a growing number of users willing to spend could shift monetization strategies over the next 5-10 years.
HP’s 2023 Gaming Landscape Study revealed that three-quarters of India’s Gen Z identify as serious gamers, and over half believe they could pursue professional gaming careers. While Indian gamers currently spend less on mobile apps compared to Chinese users, their engagement levels are among the highest globally. In 2023, Indians spent 1.19 trillion hours on mobile apps, the highest worldwide. These trends suggest that India’s CSG market is set to become a global powerhouse, leveraging time-based monetization models and its vast user base.
For more details, visit Bloomberg Intelligence’s official website. And remember to subscribe to Gaming Foodle for the latest gaming updates!