If we look at the Asian gaming market as per revenue, India is not really one of the hotspots. Sure, the country along with its recent increase in native game developers is a leader in the South Asian segment; but when compared to giants such as Japan and South Korea, there is still a long way to go.
However, with recent reports showing a massive surge in year-on-year growth (30% CAGR in 2022) of the video games industry in India, analysts are claiming that it could potentially become the next big market and challenge the existing leaders.
Predictions state that by 2026 the industry would be worth $7 billion, claiming a huge chunk of the Asian gaming pie. Clearly, there is a lot more to the Indian gaming sector than meets the eye.
Mobile Gaming Segment On The Rise
Apart from China, India has the biggest gaming population, and the majority of it is submerged in the mobile gaming sector. This particular segment has become wildly popular due to rapid internet proliferation, generating over $500 million in revenue last year.
Primarily led by the youth of the country, the Indian mobile gaming sector clocked close to 200 million players last year; a figure that could compete with the likes of China, which is one of the biggest gaming markets in the world.
And if we were to leave out China from the equation, India could account for more than half of the mobile gaming population in the continent. Without a doubt, mobile gaming is the future of the Indian gaming industry.
Real Money Games Bringing Adults Into The Market
India has finally accepted the fact that adults are willing to spend their money on online games. The legalization of fantasy sports games, card-based betting games, etc., is allowing the age range of the gaming community to expand.
What was once only a market for kids and early adults between ages 14-22, has now expanded to include people from ages of 15 to 45. Video game developers in the country have also taken note of this change and are working to capitalize on the older audience.
Another factor that is particular to older gamers is that many of them are more drawn towards games in their native languages. So, a lot of the top mobile games in India are currently built only for the native population and not for the international market. This trend is something that separates the Indian gaming market from its competitors in the West, but similar trends can also be found in other Asian countries.
Certain Key Drivers Missing
In 2020, China’s gaming industry was growing at 8% CAGR, and the American industry was at 10%. Compared to them the Indian gaming sector clocked a massive 25% CAGR. Since then the gaming population in the country has moved ahead, but as of 2023 India’s revenue levels from video games still remain lower than the larger competitors.
The primary reason for this is the fact that revenue from mobile games is much lesser compared to PC or console-based games. With the right drive, the Indian population can adopt these devices much like mobile games.
However, the country seems to be concentrating on growing the mobile gaming sector and becoming a regional leader in this particular market.
