India's gaming market is on track for major growth, projected to hit $3.8 billion by 2024 and $9.2 billion by fiscal year 2029. This represents a 20% compound annual growth rate over five years. Gaming's share of the broader "new media" market—which includes video streaming, social media, animation, and audio services—is expected to reach 30% by 2024.
Real-money gaming (RMG) currently makes up 63% of the industry in 2024. But RMG growth is slowing to 8% annually by 2029. By the end of the decade, the traditional gaming market is expected to nearly double the size of the RMG segment, signaling a shift in where players are spending their time and money.
India's New Media Market Size
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Revenue growth and market dynamics
In-game purchases are set to grow at a 44% CAGR, driven by mid-core games like Battlegrounds Mobile India, Garena Free Fire Max, and Clash of Clans. These titles saw a 53% year-over-year increase in IAP revenue in 2024. Casual and hypercasual games also contributed, with a 10% rise in IAP revenues during the same period.
Advertising revenue is growing at a 15% CAGR through 2029, reflecting the increasing importance of ad-based monetization. RMG continues to be a significant part of the market, but recent regulatory changes have hit profitability hard—causing a 50% decline and creating financial challenges for 25% of companies. Despite these obstacles, the RMG sector still managed 20% growth in 2024.
Gaming Market Size by Genre
A deep dive into player demographics
India's gaming audience is expected to reach 591 million by 2024, making it the second-largest market globally for game downloads, ahead of the United States and Brazil. Players are spending more time gaming too—average weekly playtime increased from 10 hours in 2023 to 13 hours in 2024.
The gender split is nearly even: 56% male, 44% female (up from 41% the previous year). Younger gamers aged 18 to 30 represent the largest demographic at 43%, followed by those aged 30 to 45 at 29%, and players over 45 making up 28%. A significant portion of gamers—66%—live outside major metropolitan areas, showing how gaming has spread across rural and semi-urban regions.
Affordability drives access. 81% of players use smartphones costing no more than $400, and 90% rely on mobile data plans that consume less than 3GB per month. These factors, combined with the increasing availability of affordable smartphones and data plans, have been central to the market's expansion.
Demographics and Game Preferences
Payment preferences and regional trends
Digital payment methods dominate. Around 83% of gamers use UPI and digital wallets for transactions, while only 16% rely on bank cards. Regional differences also influence behavior: western India has the highest proportion of paying users, while southern India has the most active player base.
Player spending is increasing. 25% of users say they're investing more money in gaming than before. By 2024, the annual average revenue per paying user (ARPPU) reached $22, up 15% from the previous year. The number of paying players rose to 148 million, accounting for 25% of the total gaming population. Over 60% of RMG players also spend on mid-core games, showing overlapping preferences across segments.
Regional Trends
Relevance to web3 gaming
India's gaming market growth has direct implications for web3 gaming adoption. With 591 million gamers by 2024 and a strong preference for digital payment methods like UPI and wallets, India is well-positioned for blockchain-based gaming platforms that offer decentralized ownership, tokenized economies, and play-to-earn models.
The increasing monetization through in-game purchases and the expansion of the traditional gaming segment suggest players are open to new ways to engage with games, including blockchain integration. The rise of younger, tech-savvy gamers, combined with affordable smartphones and low-cost data access, creates a promising environment for web3 innovations. As web3 gaming emphasizes transparency, ownership, and earning opportunities, it aligns well with the aspirations of a large portion of India's gaming audience, positioning the country as a potential leader in the web3 gaming space.
Engagement and Payment Behaviours
Future outlook for India's gaming industry
India's gaming market is entering a dynamic growth phase, driven by technological advancements, evolving player preferences, and expanding monetization opportunities. While RMG remains important, the rise of traditional gaming and the strong growth of in-game purchases and advertising signal a shift toward a more diverse and sustainable industry.
As the market moves toward its projected value of $9.2 billion by 2029, stakeholders will need to adapt to regulatory changes, leverage technological innovations, and address the diverse needs of the growing player base. India's gaming industry is positioned to become a global leader, with its expansive user base and innovative monetization strategies driving its evolution.
Source: Lumikai and Google
