India’s gaming market set to hit US$ 9.2 bn by 2029

India’s gaming market is set to grow to US$ 9.2 billion by FY29, driven by in-app purchases and advertising revenue, according to venture capital firm Lumikai’s State of India Interactive Media and Gaming Report. The market saw significant growth, rising 23% in FY24 to reach US$ 3.8 billion, up from US$ 3.1 billion in FY23. This upward trajectory is expected to continue, with the market projected to grow at a compound annual rate of 20% over the next five years.

In-app purchases remain the fastest-growing revenue segment, achieving 41% year-on-year growth. Real Money Gaming (RMG) platforms added US$ 400 million in revenue, largely due to a packed sports season featuring two World Cups and the IPL. However, RMG’s profitability faced pressures due to taxation challenges, which impacted margins. Casual and hyper casual games saw a 10% increase in in-app purchase revenue, while ad revenue remained stable, despite global cutbacks in ad spending.

India’s gaming ecosystem expanded to 590 million gamers in FY24, adding 23 million new users. It is now the second-largest market worldwide for mobile game downloads, outperforming markets like the US and Brazil. The report noted that players in India are also spending more time on games, with average weekly playtime increasing by 30%, from 10 hours to 13 hours.

The average annual revenue per paying user grew by 15% to US$ 22, and 25% of gamers now make in-game purchases, bringing the paying user base to 148 million. Additionally, over 60% of RMG gamers also spend on mid-core games, indicating a trend toward increasingly sophisticated gamer preferences and behaviors.