The next big game: India’s US$ 60 bn gaming growth story

India’s online gaming industry is projected to more than double to US$ 9.1 billion by 2029, growing at a CAGR of 19.6%, driven primarily by real money gaming (RMG). A joint report by WinZO Games and Interactive Entertainment and Innovation Council (IEIC), highlights India’s mobile-first, youth-driven market, which accounts for just 1.1% of the US$ 300 billion global market. With 591 million gamers, 11.2 billion game downloads, and nearly 1,900 companies, the sector holds US$ 63 billion investor potential by 2029. The sector has attracted US$ 3 billion in FDI and could unlock US$ 63 billion in investor value. With increasing demand for regional content and strong digital infrastructure, India’s gaming market is expected to reach US$ 60 billion by 2034, creating over two million jobs.

India’s online gaming industry is set for remarkable growth, with its market size projected to more than double to US$ 9.1 billion by 2029, according to a joint report by WinZO Games and the Interactive Entertainment and Innovation Council (IEIC). The report titled ‘India Gaming Market Report: Consolidating Growth, Driving Innovation, Building Resilience’, was recently launched by Dr. Srikar Reddy (Consul General of India at San Francisco) and WinZO’s Co-founders, Mr. Saumya Singh Rathore and Mr. Paavan Nanda.

Unveiled at the Game Developers Conference (GDC) in San Francisco, the report highlights the rapid expansion of India’s gaming ecosystem. 

As per the report, “In 2024, India’s online gaming sector’s size was USD 3.7 billion, and by 2029 (estimated), it will touch a USD 9.1 billion market size. RMG (Real Money Gaming) continues to dominate, contributing 85.7 per cent of the sector’s revenue, valued at USD 3.2 billion, and growing at 18 per cent during 2024.”

Currently, India’s gaming industry is estimated at US$ 3.7 billion, with Real Money Gaming (RMG) making up nearly 86% of the overall revenue. The sector is expected to grow at a robust CAGR of 19.6% from FY 2024 to FY 2029.

The report underscored the significant untapped potential of India’s mobile-first, youth-centric online gaming market, which currently accounts for only 1.1% of the US$ 300 billion global gaming industry. It highlighted that India has recorded 11.2 billion mobile game downloads and is home to nearly 1,900 gaming companies, employing around 130,000 professionals. The report also noted that Indian gamers largely prefer casual and hyper-casual games developed in regional languages, highlighting the growing demand for Indic content and signaling the emergence of a new era of gaming that is ‘Made in India, for the World’.

Some other key highlights from the report:

• Internet Users: 936 million (2024), 1300 million (2029E), CAGR 2024-29E – 6.8%
• Smartphone Users: 883 million (2024), 1240 million (2029E), CAGR 2024-29E – 7%
• Online Gamers: 591 million (2024), 952 million (2029E), CAGR 2024-29E – 10%
• Paying Gamers: 148 million (2024), 292 million (2029E), CAGR 2024-29E – 14.6%
• Total mobile game app downloads: 8.6 billion (15%+ share of global game app downloads). Including alternative distribution channels, the total game app downloads for 2024 in India is 11.2 billion.
• Number of gaming companies: 1,888
• Potential investor value yet to be unlocked: US$ 26 billion currently, can go as high US$ 63 billionn by 2029E
• Cost of mobile data in India: US$ 0.12/GB in 2024; most affordable globally
• Data Consumption per capita per month: 31.9 GB (2024), 60.3 GB (2029E), CAGR 2024-29E – 13.6%%Regulatory Clarity Could Unlock $26 Billion in India’s Gaming IPOs as Market Eyes US$ 9.1 Billion Growth by 2029
• Over 70% of the gamers in India prefer vernacular content
• India is largely a ‘mobile-first’ gaming market with mobile gaming constituting about 90% of the gaming market, whereas mobile gaming in the US and China market constitute 37% and 62% share, respectively.
• The share of RMG will moderate from 85.7% currently to 80% by 2029, and the share of non-RMG is expected to increase from 14.3% to 20% during the same period.

Expanding investment potential

The report also underscores the gaming industry’s investment potential. The industry attracted US$ 3 billion in foreign direct investment, with 85% of it directed toward the Pay-to-Play segment. Based on current valuation multiples, India’s US$ 3.7 billion market could translate into at least US$ 26 billion in investor value via IPOs. If the industry reaches its projected US$ 9.1 billion valuation by 2029, it could deliver US$ 63 billion in investor returns.

Nazara Technologies, India’s only publicly listed gaming company, commands the highest premium among global gaming firms. 

“Both the India Gaming Market Report, and the India Pavilion at GDC highlight our country’s expanding influence in the global gaming landscape, demonstrating the innovation and scale of homegrown gaming companies. As we continue to push boundaries in technology innovation, IP creation, and engagement, WinZO remains committed to shaping India into a global gaming powerhouse,” Mr Nanda said.

Looking ahead, India’s gaming industry is set to reach a market size of US$ 60 billion by 2034, fueled by the country’s strong digital economy, a rapidly growing developer ecosystem, and a conducive regulatory environment. This expansion is expected to generate over two million jobs, draw significant foreign investment, and strengthen the global export of Indian gaming intellectual property.