Gaming Industry in India

India is positioned to become one of the world’s top gaming marketplaces because it has one of the highest youth populations in the world. According to experts, the Indian gaming industry is expected to generate thousands of direct and indirect employment opportunities by 2023 and even more by the next financial year!  

Furthermore, it is predicted that the sector will expand by approximately 30% by 2023. Testing engineers, developers, gaming designers, and gaming animators are a few of the most sought-after professions in the gaming sector.

There is a demand for an average of 80,000 jobs involving programmers, developers, testers, artists, and customer service.

India ranks as the sixth-largest gaming market worldwide in terms of revenue, according to research. There are currently about 480 million users in the local gaming market. Additionally, the current anticipated income for the worldwide gaming market is 17.24 lakh crore. 

The industry is expected to increase by a multiplier of five from 7,037 crores in 2019 to 38,097 crores in 2026. Furthermore, it is anticipated that by 2023, the domestic gaming market will draw FDI worth 780 crores.

Indian gamers are using the potential to satisfy various consumer expectations as gaming adoption rises. The gaming industry is expected to experience record employment growth due to impending market expansion.

Over 50,000 people are working in the Indian gaming sector, and 15,000, or 30%, are developers and programmers.

More women are also anticipated to hold senior positions in the gaming industry, given the rising proportion of women in the sector, which now stands at over 40%.

The Evolution of the Indian Gaming Industry

The Indian gaming industry developed from coin-operated arcade games like “Tekken” in arcades to portable consoles like Nintendo, accompanied by the PlayStation and Xboxes. With a massive increase in online gamers, internet gaming has become a popular form of entertainment and is becoming more widely accepted in India. 

Online gamers in India increased from 250 million in 2018 to approximately 400 million by the middle of 2020. The sector has had rapid growth over the previous five years and is anticipated to triple in value by 2025.

More than half of India’s population is under 25, and over 60% of the country’s gamers are also under 25.

Factors That Influenced The Growth

The growth of the technology infrastructure is one of the critical macro elements influencing the industry’s expansion. The rollout of 4G services in 2016 ensured that everyone could get fast internet at reasonable pricing. 

Demonetization also allowed the infrastructure for digital payments to flourish quickly. The number of devices in the country increased, and as smartphones became more widely available and powerful enough to run games, more people had exposure to immersive gaming.

The Covid-19 outbreak and its sad effects ultimately boosted online gaming both internationally and in India. People staying at home during the lockdown led to an overall rise in online media consumption. 

A study found that approximately 45% of mobile users in India began using their smartphones to play games during the outbreak. High interest in multiplayer with a social component emerged as virtual social connections became the latest craze.

Increased gaming consumption and the general shift to digital payments led to better revenue for online games. Additionally, the pandemic caused a change in entertainment and media consumption patterns and a decline in popular industries, including print, television, and film. 

People from all demographic groups have embraced gaming as a key source of entertainment and escape. It met their need for online amusement with their loved ones, friends, and peers. With online streaming, influencers promoted these games, offering even another kind of entertainment.

How The Indian Gaming Industry Compares to The Rest of The World

Although the Indian online gaming sector is still in its infancy compared to other global markets, it is one with the most significant growth rates. Despite having the second-highest population of gamers worldwide, India still confronts many difficulties today. 

The sector has a relatively low income per paying user and is considerably under-indexed for monetization. Due to limited consumer spending on games and comparatively weak game design skills, hardly many Indian companies have created a name for themselves on the international scene. Another factor is the negative attitude that Indians had toward gaming. 

Nevertheless, the industry continues to grow regardless of the hurdles, and investors should take advantage to stay caught up.