India's Gaming Market Surpasses $1 Billion, Projected to Hit $1.2 Billion by 2026

The Indian gaming market achieved a significant milestone in 2025, surpassing the $1 billion revenue mark for the first time with a 14.8% year-over-year increase to $1.04 billion. According to forecasts by Niko Partners, the market is expected to reach nearly $1.2 billion by the end of 2026 and $1.77 billion by 2030, representing a five-year compound annual growth rate (CAGR) of 11.2%. The total number of gamers in India reached 511 million in the previous year and is projected to exceed 550 million in 2026, further growing to over 700 million by 2030. Notably, female gamers now account for almost half of all players, marking an increase from 43% in 2023. The primary driver behind the increased revenue and engagement was the higher spending on mobile games, fueled by increased digital adoption and rising disposable incomes among specific consumer segments. However, monetization in this segment remains in its early stages, with the average revenue per user (ARPU) reaching $2.04 in 2025 and predicted to rise to $2.52 by 2030. Niko Partners observed that India's gaming market is becoming more diverse, with audiences exploring a wider range of genres across platforms like PC and console. Although these audiences are smaller, they drive significant engagement, providing publishers with opportunities to expand beyond mainstream genres such as battle royale and casual titles. This trend includes a rise in user-generated content, with platforms like Roblox and Minecraft gaining popularity among younger Indian audiences. Moreover, non-battle royale mobile games have captured a larger share of market revenue, increasing from 53.2% in June 2023 to 62.8% in June 2026. Niko Partners predicts that these trends, combined with increased government support, growing esports participation, and expanded opportunities for publishers, will shape the future of India's gaming market over the next five years. The firm also noted a shift in Indian gamers' sentiment towards generative AI, indicating that players are becoming more cautious about AI usage by both developers and players, with economic concerns, particularly regarding AI's impact on employment, being a key factor.