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The gaming industry in India has transcended mere entertainment to emerge as a powerhouse within the media and entertainment sector. Surpassing filmed entertainment, it now stands as the fourth largest segment, showcasing its undeniable impact and potential. With a staggering 455 million gamers, of which nearly a quarter engage with online games daily, the industry’s influence is undeniable.
Looking ahead, the trajectory of growth remains promising, with projections indicating a sector worth a whopping Rs 388 billion by 2026. Despite some administrative challenges in certain regions, the overall outlook is optimistic. This is fueled by a shifting market landscape, characterised by a growing willingness to invest in online gaming and an expanding user base, poised to propel India to the forefront of global online gaming dominance.
Moreover, the evolution of online gaming has transformed it into more than just a casual pastime. It has become a viable career path for many, with individuals transitioning into full-time gaming professionals. According to the recent FICCI-EY 2024 report titled ‘#Reinvent – India’s Media & Entertainment Sector is Innovating for the Future’, the sector experienced a remarkable 22 per cent growth in 2023, achieving a total estimated revenue of Rs 220 billion (a significant leap from the Rs 181 billion recorded in 2022). This revenue comprises transaction-based games accounting for Rs 182 billion, while esports and casual games contribute Rs 38 billion.
Here are the key findings of the FICCI-EY Report 2024:
1) Online gamers grew eight per cent in 2023
2) Hyper-casual games were most downloaded
3) Transaction-based game revenues crossed Rs 180 billion
4) Casual gaming grew 24 per cent in 2023
5) Shooting games were most monetised
6) Game viewership continued to grow
7) India’s role in the international gaming landscape
Future Outlook:
1) The segment is expected to reach Rs 388 billion by 2026
a) Smartphone users, who are expected to grow from 574 to 640 million by 2026.
b) Wired (or similar) broadband, which should almost double from 38 million to 68 million c) Growing per capita incomes and low data charges.
2) Retrospective taxation can shut down the segment
3) Consolidation can be expected
4) In-app purchases will grow significantly
5) Many new games will launch
6) Gaming on ONDC and other apps
Here’s the full EY FICCI 2024 report titled ‘#Reinvent – India’s media & entertainment sector is innovating for the future.