The Path to 3 Billion: How India's Gaming Industry is Reshaping the Global Scene
The growth of the online gaming industry in India is poised to reach unprecedented heights, with a compound annual growth rate (CAGR) of 40% and expected revenue of $2.8 billion by 2022, up from $1.1 billion in 2019. According to a StraitsResearch report, this is largely driven by a combination of affordable smartphones, increasing disposable income, and the surge in online gaming during the lockdown period due to the covid-19 pandemic.
The study revealed that the time spent on gaming apps more than doubled during the initial national lockdown, with the number of users crossing 300 million. Even as the economy resumes and people return to their pre-pandemic activities, the industry is set to remain strong, having already entrenched a significant portion of the media and entertainment market.
A Global Leader in Mobile Gaming
India is one of the top five mobile gaming markets in the world, holding a 13% share of global game sessions. It is projected to add 40 million online gamers by 2022, marking a substantial increase in user base. The accessibility of gaming through smartphones and the affordability of data plans are key factors driving this growth.
Pranav Bagai, CEO and co-founder of Poker Sports League, highlights the transformative potential of increased internet penetration, the rollout of 5G networks, and broadband proliferation. He anticipates a rise in online gaming cohorts and the monetization of passions through game streaming. The revenue forecast for the online gaming industry in India is equally promising, aligning with the findings of a Deloitte report.
Shifting Business Models and Revenue Streams
The business models of gaming platforms in India are evolving, transitioning from revenue models based on downloads and advertisements to diversified revenue streams centered around consumer engagement and enhanced gaming experiences. In-game revenue streams, such as chargeable expansion packs or virtual coin packs, and subscriptions, are gaining traction.
In the last six years, Indian gaming platforms have attracted over $450 million in investments. Recent investments include those in Mobile Premier League, which raised $90 million in 2020 from Pegasus Tech Ventures, and JetSynthesys, which raised $40 million from a consortium of investors, including Reliance Jio, DSG Jetline, and Triveni Engineering Industries.
Avenues for Future Growth and Regulation
The Indian gaming industry has the potential to generate substantial revenues, create jobs, and ensure responsible gaming practices. By bringing the sector under formal regulation and taxing it rationally, the industry can curb illegal activities such as match-fixing and money laundering. Regulatory frameworks could also encourage innovation and ethical business practices.
As the industry moves forward, attention must be given to ensuring that the benefits of growth are distributed equitably, particularly in terms of accessibility and safety for all users. With the right policies and support, the Indian gaming industry can continue to thrive and make a significant impact on the global scene.