According to a comprehensive report by Lumikai and Redseer, India’s gaming market is set to become $7 billion in FY2026 (more than 3X of the market in FY2021).

The report titled “India Gaming Report 2021″ showed that in-app purchases are the fastest growing revenue streams of the market with an increasing number of paid users, and their growing propensity to pay is driving the growth.

From 80 million gamers in 2020, paid gamers in India are set to become ~235 million in 2025, which will drive the growth of paid gamers, the report stated.

Speaking on the development, Mukesh Kumar, Engagement Manager at RedSeer, stated,

“This is an exciting time for the gaming ecosystem in India. Access to gaming is democratized with increasing participation from Tier-II cities and beyond, gamers are maturing in the way they play different gaming genres and unprecedented growth in new-paying users (NPU) to drive the overall gaming market to become 3X in the next 5 years.”

India Gaming Report 2021

The report highlighted that while real-money games are the largest source of revenue for the market, in-app purchases will grow faster for the next five years at 30-40% with the rise of paying users in casual & hyper-casual gaming.

Additionally, non-real money gaming segments are expected to grow faster than the market growth rate, with eSports and streaming expected to grow at 40-45% CAGR for the next five years. 

Justin Keeling, General Partner at Lumikai Fund, added that India’s gaming market is due to 3X in value to over $7B by 2025. This growth is driven by a healthy diversity of monetization mechanics that indicate plenty of white spaces for new investment and massive potential for a new generation of leaders across the gaming value chain. 

Various reports on the Indian gaming industry by multiple firms highlight the growth of the sector in the coming years. According to a report by KPMG, the Indian online gaming segment is expected to more than double at Rs 29,000 crore by FY25.

Another report by IAMAI, in collaboration with OnePlus and RedSeer, highlighted that the Indian gaming market is poised to reach $6-7 billion in value by 2025.

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