Paid gaming market

The online gaming industry has demonstrated itself to be one of the most successful business sectors to integrate the Internet into its business models. The competitive gaming market in India is expected to more than double from $1.5 billion in 2021 to $3.5 billion in 2024. India, at a CAGR of 33.3%, is predicted to be the fastest-growing paid competitive gaming market followed by the US.

Nearly two-thirds (64%) of paid gamers in India spend their money on in-app purchases while 57% spend on gaming subscriptions on consoles and other platforms, according to a consumer survey.

Real money gaming, which requires players to pay an entry fee to participate in online competitions and get rewarded with cash prizes, was the highest revenue driver for the gaming industry but in-app purchases was the fastest-growing category with a compound annual growth rate of 34%.

Secondly, the Indian fantasy sports market is booming, with a compound annual growth rate of 32%. Cricket continues to be the fan favourite sport in the country. Adding traction are icons like Virat Kohli and Mahendra Singh Dhoni, who have been promoting such platforms. An EY report says, India is the world’s largest fantasy sports market. Over 150 fantasy gaming platforms cater to 13 crore registered players, according to All India Gaming Federation.

Indians download more games than any other country on earth, and this is translating to a host of white spaces on the consumer demand side including a largely young, professional gamer category who are increasingly paying for in-app purchases.

The EY-Loco Gamer survey says, there is growing demand for competitive gaming experiences and the potential for the industry to grow in India.

The report underlines, almost two-thirds of respondents were willing to pay for gaming subscriptions. Gaming is the preferred entertainment format and online gamers in India are maturing and moving beyond casual gaming habits to serious gameplay, with 45% of respondents spending over an hour per game playing session.

There is increasing Popularity of Esports. The survey shows that Esports is becoming increasingly popular among Indian gamers, with almost 61% respondents indicating that they have participated in Esports events and viewed at least 1 tournament a month.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA