India’s gaming industry soars to $3.8 billion, set to reach $9.2 billion by FY29: Report

In a landmark year for India’s gaming industry, the sector which surged to $3.8 billion, is projected to grow to $9.2 billion by FY29, according to a report by Lumikai, an Indian interactive media and gaming VC fund.

The report, developed in collaboration with Google and Deloitte, showed that India is the world’s second-largest mobile gaming market, recording 15.2 billion downloads, which is thrice the combined volume of Brazil and the US.

The company’s annual market intelligence report, “State of India Interactive Media and Gaming Report,” noted that gaming constitutes 30 per cent of the broader new media market and is its fastest-growing segment.

India’s new media market touched $12.5 billion in FY24 growing at a CAGR of 16 per cent, with gaming and Video/OTT being the largest segments, contributing over 60 per cent of the market.

India is also a key producer of global Animation/VFX services, with the industry valued at $1.6 billion in FY24, the report said.

Commenting on the partnership, Aditya Swamy, Regional Director, Google Play, said, “We are delighted to continue our partnership with Lumikai on this industry-defining report. India has established itself as a global gaming powerhouse with 590 million gamers and is projected to deliver strong growth over the next five years.

We are firmly committed to being a key growth enabler to the ecosystem and excited about the opportunity ahead of us.”

Among the nation’s 591 million gaming population, female gamers now make up 44 per cent. 23 million users were added in FY24 alone. 66 per cent of gamers were from non-metro cities, with 43 per cent being first-time earners in the 18-30 age group.

148 million users make in-game purchases, with 8 million new paying players added in FY24. In-app purchases, propelled by mid-core games, grew by 41 per cent year-on-year (YoY) and continue to be the fastest-growing slice out of the $3.8 billion revenue pie for FY24. 25 per cent of gamers said they spent money on games this year, consistent with FY23, with 83 per cent preferring UPI or digital wallets. 64 per cent of paying users who play RMG formats also pay for mid-core games, suggesting an overlap in gamer personas and migrating preferences of gamers. The average revenue per paying user (ARPPU) grew 15 per cent to $22.

The average weekly time spent on gaming increased by 30 per cent to 13 hours, doubling the time spent on social platforms.

At Lumikai Insignia, an exclusive summit that brought together people like SS Rajamouli, Saudi’s PIF’s Investment Manager Abdullah Alorainy, Crysis and Far Cry Founder Cevat Yerli, and Raja Koduri, an industry veteran who previously led Graphics Computing and Engineering at Intel, Apple and AMD, PIF launched Savvy Gaming Group, a games and esports company dedicated to enabling continuous advancement in the global gaming industry, backed by a commitment of $38 billion.

Salone Sehgal, Founding General Partner at Lumikai, said, “Both founders and international VCs stood as beneficiaries of the summit, connecting India’s entrepreneurial talent with global decision-makers. Additionally, as a platform for our report launch, Insignia presented the compelling growth of India’s interactive media and gaming industry. From a 30 per cent increase in average weekly gaming time to a user base of 148 million paying users contributing to an ARPPU of $22, the findings garnered global recognition and conveyed market readiness for the next phase of growth”.