Considering the time decade before, gamers in India were rarely found, but this is not the case nowadays. The Indian gaming market has advanced significantly over the past few years, going from being seen as a problem a few years ago to a popular form of entertainment. The pandemic has given wings to the sector and significantly accelerated its expansion.

According to a study by Lumikai, a gaming-focused capital firm, there were 507 million active gamers in India in FY22, from which 120 million were paying customers. By FY25, there will be 700 million gamers worldwide, which accounts for a CAGR of 12%.

Online Gaming

According to a study by the firm Sensor Tower, India now leads the global gaming market in app downloads for online gaming. As of May 2022, the country was accountable for 916 million downloads, or 19.2% of the overall game downloads worldwide. However, by the end of January, this number had fallen to 761.8m or 14.6% among all downloads globally.

Role of COVID-19

Online gaming as a category dominated almost all other entertainment and media in India in 2020, assisted by the rapid increases in new customers, downloads, and app engagement. KPMG said the lockdowns were a turning point for the sector, with individuals playing online games up 20–25% from levels before COVID-19. In 2020 and 2021, Ludo King’s popularity and other social games rose due to a lack of real social engagement and more free time available. Since then, these games have been continuing strong.

At the end of FY22, the value of our online gaming market was estimated by KPMG to be around Rs 14,500 and Rs 15,500 crore. Globally, there seem to be 430–460 million gamers, with more than 90% being casual or playing on mobile devices. KPMG predicts that this amount will rise to 600 and 650 million by FY25.

Along with social multiplayer games like ludo, carrom, & pool that were popular during Covid-19, India has also been experiencing an increase in cricket-themed games as well as Battlegrounds Mobile India, an Indianized version of PUBG.

What other factors contribute to this feat?

Cheap Internet

India ranks among the least expensive countries in the world to provide data. The internet cost is fairly reasonable in this country, and both rural and urban regions have easy access to it. You can see why the gaming industry has grown to be such a significant phenomenon in the nation when you consider that there are an increasing number of affordable cell phones accessible, and that number is only growing.

Brands coming together

Every brand needs a sizeable, equally interested target audience, and esports provide that. Esports fans are becoming increasingly prevalent, particularly in India, which has opened up lucrative marketing opportunities for local and international firms. Though they are spending substantially on content producers, a vital part of the Esports community, marketers’ attention has been broadened beyond just games or competitions. A content creator’s fan base is age-neutral, and the interaction between the creator and audience in this setting is highly strong and equally entertaining. Through this potent connection, creators may influence their broad audience and persuade people to buy their items.

Tournaments and Competitive Gaming

The numerous well-known competitions with lucrative prizes have raised the level of rivalry among the players and teams, bringing out the very best in them. Likewise, the number of streaming services or companies competing to host these competitions has grown rapidly and has also enhanced the quality of the sport, which is advantageous to the entire community.

Is Web 3.0 the future of gaming?

Cut to 2022, the metaverse and Web 3.0, phrases that are used more and more frequently, are being referred to as the game industry’s future. According to Rooter’s Kumar, two of Web 3.0’s most popular applications are finance and gaming. Any cash or item you gain in a game may be utilized in other games, which is a benefit of Web 3.0. Web 2.0 does not support this. A growing trend is the “play-to-earn model.” In Web 3.0, you may earn cryptos and NFTs and increase your earnings by playing more.

Industry observers claim that several marketing funds are currently coming into gaming and that brand engagements have a “very bright future.” Netflix has lost favour with a specific age group. They are either playing or watching a game. The games may also be interacted with in Web 3.0 and the metaverse. According to Kumar, advertisers may make them more commercially viable by developing fresher monetization schemes.

Takeaways and Facts you should know!

• The gaming industry in India, which had a market value of $2.6 billion in 2022, is anticipated to increase at a CAGR of 27% to $8.6 billion by 2027. In-app purchases, a market increasing at a 34% CAGR, are set to replace real money games, where players play to earn.
• Indian gaming enterprises, according to the research, generated around $513 million by the conclusion of FY 2022, a 380% increase from 2019. It’s interesting to note that most investments occurred after 2020, during the Covid-19 timeframe. Three Indian gaming unicorns, MPL, and Games 24×7, with Dream11, also emerged during that time.
• In FY 2022, there were more than 50.7 crore gamers in India, with 12 crores being paying customers. Over 5.7 crore more people played games in the past year, an increase of nearly 12%. Mid-core games, which demand time, effort, and skill, were the gaming category with the biggest increase in FY22, increasing by 32% and generating total sales of $550 million.

Conclusion

With India winning the first-ever bronze medal in the inaugural esports competition held in conjunction with the 2022 Commonwealth Games, the gaming industry in the country has advanced to new heights this year, and this is only the beginning.

According to analysts, as the world’s largest gaming market, India is expected to see more India-specific initiatives from international software and hardware makers. In addition, there are several brand integration, partnership, and initiatives in the Indian advertising sector that are aimed toward this sizable demographic.