The Indian gaming landscape exploded in 2024, with a 20% surge in revenue
By FY29, the sector is projected to cross $9.2 Bn, with a compound annual growth rate (CAGR) of 20%
Indian gamers are more invested than ever, clocking an average of 13 hours a week—a 30% jump from last year
In 2024, the new media market roared to life, evolving into a $12.5 Bn powerhouse. Driven by both systemic developments and user aspirations, the gaming sector constituted 30% of the new media market revenue pie, touching $3.8 Bn, emerging as its fastest-growing segment in FY24.
As demographics shifted, regulations evolved, and revenue records shattered, the gaming industry shed its image as a pastime and cemented its reputation as a legitimate economic sector. Here is a look back at the year, and a glimpse into the future.
Record Revenue Milestones
The Indian gaming landscape exploded in the past year, with a 20% surge in revenue. In-app purchases, the industry’s fastest-growing segment, skyrocketed by 41%. By FY29, the sector is projected to cross $9.2 Bn, with a compound annual growth rate (CAGR) of 20%.
This meteoric rise finds its roots in infrastructural propellers of increased smartphone penetration, affordable data services, and localised payment infrastructure. With 25% of gamers making in-game purchases, the paying user base swelled to 148 Mn in FY24.
Annual ARPPU (Average Revenue Per Paying User) climbed to $22—a 15% jump from FY23—recalibrating the growing sophistication and spending propensity of Indian gamers. Enhanced ad revenues and the incremental willingness to pay for premium experiences suggest that India’s gaming ecosystem isn’t just growing—it’s levelling up.
The New Gamer: Changing Demographics
The Indian interactive media and gaming landscape is undergoing a profound shift. Women, now comprising 44% of gamers, are increasingly drawn to casual and mobile titles. Moreover, the gaming community is no longer an urban enclave. Two-thirds of gamers hail from non-metro cities, reforming the medium’s broad appeal.
Young adults, especially first-time earners, are willing to pay for premium gaming experiences. This demographic evolution signals a new era for Indian gaming, one marked by inclusivity and accessibility. This redefinition of the user landscape truly shows the efficacy of technology as the great leveller.
User Engagement At An All-Time High
Indian gamers are more invested than ever, clocking an average of 13 hours a week—a 30% jump from last year. Blockbuster titles like Battlegrounds Mobile India (BGMI) and Free Fire Max dominate screens, offering immersive worlds that have now become digital playgrounds.
Casual and hyper-casual games are no bystanders either; their in-app purchase (IAP) revenues grew 10% this year, even as global ad-spend contractions left advertising revenue remarkably steady. Remarkably, INR 29 has emerged as the preferred entry price for first-time payers, lowering the barrier to monetisation and attracting millions of new users. These developments have made gaming a ubiquitous part of Indian entertainment, shaping the way Indians spend their leisure time.
Dominance Of Mid-Core Games
Mid-core games experienced a staggering 53% growth in IAP revenues, outpacing casual and hyper-casual games. Titles like Clash of Clans lead the charge, offering challenging gameplay and captivating storytelling. This trend appeases the Indian gamers’ maturing palates, who now seek depth and strategy in their gaming experiences and is reflected in the mid-core and hardcore sector’s CAGR of 44%.
This shift isn’t just about gameplay; it’s about economics. Higher ARPPUs reflect players’ willingness to pay for premium experiences and competitive edges. With global gaming giants eyeing the Indian market, mid-core games shall remain a major revenue driver for years to come.
Global Investor Confidence
Even amid global economic uncertainty, India’s gaming sector has remained a magnet for investors, pulling in $400 Mn this year alone, and $4.8 Bn since 2020. It’s not hard to see why: the country’s massive, diverse audience and untapped market potential make for a compelling pitch.
Investors—both domestic and international—are channeling funds into mid-core game development and esports infrastructure, betting on India’s ability to lead on a global stage. This influx signals a deep faith in the sector’s scalability, innovation, and long-term profitability.
Predictions For 2025
Having added 23 Mn new gamers to India’s 591 Mn gaming population in FY24 alone, the industry is on an upward trajectory. Corroborating this, a recent USISPF report says that India’s interactive entertainment sector is projected to grow to $60 Bn by 2034, creating over 2 million jobs. This, coupled with the government labelling gaming as a “sunrise” sector, cements global interest in India’s sophisticating interactive media and gaming market.
Casual and hyper-casual segments will remain strong due to their accessibility, but mid-core games are poised for sustained dominance. Esports, now an official sport, will continue its bloom in 2025, as recognised as an official sport, buoyed by India hosting the WAVES Summit in February 2025, and the establishment of AVGC Centres of Excellence.
Gaming will also be leveraged by brands to reach younger audiences and will continue to become more entrenched in pop culture. These trends indicate a compelling future where India consolidates its position as a global gaming powerhouse, with the sector expected to surpass $9.2 Bn by FY29.
