India's Gaming Market Expected to Reach $9.2 Billion in Five Years

India has witnessed a significant 23% surge in gaming revenues, reaching $3.8 billion in the last fiscal year, with projections indicating a nearly threefold increase over the next five years. A report by Lumikai, in collaboration with Google and Deloitte, reveals that mobile games accounted for 30% of India's new media market, which totals $12.5 billion. The gaming industry is poised to reach $9.2 billion in revenue by the end of the 2029 fiscal year. Salone Sehgal, founding general partner at Lumikai, notes that the Indian gaming market has been misunderstood, with misconceptions about player preferences and spending habits being debunked by data. The report highlights that India is the world's second-largest mobile games market, with 15.2 billion downloads and 591 million players. The COVID-19 pandemic accelerated the growth of mobile gaming, with the lockdowns driving revenue and players away from real-money games. The rise of Unified Payments Interface (UPI) has also contributed to the growth of free-to-play gaming, making it easier for players to make in-game purchases. Midcore games, such as Battlegrounds Mobile India and Clash of Clans, have become increasingly popular, with 64% of users who pay for real-money games also spending on midcore titles. The average revenue per paying user has risen by 15%, driven by the growth of midcore games and the increasing adoption of UPI. The report also reveals that 66% of paying users buy in-game currency, while 61% purchase performance-based upgrades. Sehgal notes that the Indian gaming audience is more diverse than previously thought, with 44% of gamers being women and 66% based in non-metro cities. The majority of gamers use lower-end mobile devices, with 43% using smartphones that cost between $200 and $400. Sehgal believes that the combination of cheap data, affordable devices, and digital payments has created a 'perfect recipe' for the growth of gaming in India. The average time spent playing video games has increased by 30% to 13 hours per week, surpassing the time spent on social media. Looking ahead, Sehgal sees opportunities for both Indian and overseas game developers, with a particular emphasis on creating games that reflect local culture and language. She advises overseas publishers to adapt to the Indian market by localizing their games, partnering with local celebrities, and offering pricing reflective of the Indian market.