Online Gaming In India Will Be of Rs 29,000 Crore By 2025

Now, a new report by KPMG tries to decode the casual gaming market in India and revealed that the overall potential of online gaming in India could be worth Rs 169 billion by 2025.
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Currently, the Indian online gaming market stands at a size of INR 60 billion which is expected to grow.

“Gamers across demographics took to online gaming as a means to connect with family and friends, with the supply side also playing its part, in terms of multiple titles getting multiplayer features, with a social layer to them, to encourage group consumption. With India experiencing a second wave of the COVID-19 pandemic currently, it is envisaged that the consumption of online casual gaming is likely to continue being robust, helped by the robust digital infrastructure that India has, and the continued investments by Indian and global developers and publishers in making world-class games available to the Indian gamer,” the report said. 

KPMG says that India saw a growth in the online gaming space for a variety of reasons. It mainly attributes the growth due to increasing smartphone penetration, internet penetration, young population and adoption of digital payments adoption. 

Many games also saw an increase in world-class titles that hosted localised content. Games with multiplayer modes and social elements saw an increase in investor interest as well. 

However, India faces a unique problem that involved average user spending. 

The report said that “the ARPPU of online casual gaming in India is ~USD 2 (FY21), which is amongst the lowest in the world, given that India has the second-largest base of online casual gamers in the world,” KPMG said this is due to lower penetration of consoles in India as it requires an additional cost of paying for games. 

KPMG says that India will continue to see gaming platforms supported by Ad revenue and “is not likely to go away in the near to medium term as free to play games dominate consumption in India.” 

The report also adds cloud gaming has the potential to change the gaming landscape in India as India has a limited capacity to invest in hardware. eSports in India is also expected to grow rapidly over the next five years due to increased interest from brands for sponsorships. “The India esports sub-segment is expected to grow by CAGR 27% over FY21-25 to reach a size of Rs 5.7 billion,” the report said. 

Girish Menon, Partner and Head, Media and Entertainment, KPMG in India added,  “The online casual gaming sub-segment in India has emerged as the largest in terms of consumption amongst overall online gaming, with close to 420 million gamers engaging in online casual gaming in FY21.”

“We envisage the online gaming segment to be amongst the largest segments of the M&E industry in India in the years to come, garnering a share of both the time and the wallet of the Indian digital billion” he added. 

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