The Indian gaming industry is projecting a five-year CAGR (Compound Annual Growth Rate) of 11.1 per cent to US$1.4 billion by 2028, said the latest Niko Partners 2024 India gamer behaviour & market insights report.
This report has said that this growth is the fastest among all the markets Niko Partners has tracked, and is driven by a rise in player spending. 77.3 per cent of PC gamers reported in Q1 2024 that they spent more on PC games compared to the same period last year. This figure is higher than for mobile and console gaming.
With a growing economy, increased smartphone penetration, and esports tournaments, gaming engagement is expected to grow further, leading to higher Average Revenue Per User (ARPU).
Two-thirds of Indian gamers now prioritise enjoyment, which is driving increased spending on games that meet their expectations. Super-hardcore gamers spend 2.2x more per month than casual gamers, with female gamers spending 8.5 per cent more than males.
Additionally, the report highlights that 65.4 per cent of gamers are involved in esports, with esports fans spending 12 per cent more on games than non-esports participants.
Niko Partners CEO Lisa Hanson stated, “In 2024, India’s gamers are more discerning and more willing to spend money on gaming than they were just a few years ago. The five-year CAGR of 11.1 per cent that we forecast for India’s video games industry (to US$1.4 billion by 2028) is based on trends including increased playtime and spending, greater engagement with esports, increased investment from the private sector, and support from both central and state governments to build the video games and esports industry.”
Commenting on the report, Skyesports founder and CEO Shiva Nandy said, “As gamers increasingly prioritise enjoyment and are willing to invest in games that meet their expectations, it’s clear that the industry is evolving rapidly. At Skyesports, our focus on a diverse range of titles catering to mobile and PC gamers aligns perfectly with this trend. We believe that the growth in gamer spending and engagement will drive the expansion of esports, capture the attention of global publishers, and attract more viewers and brands to the esports ecosystem. At this rate, in a few years, we envision an Indian gaming community where multiple titles enjoy popularity across different genres and platforms.”
Niko Partners is a USA-based market research firm that provides in-depth insights and intelligence on the Chinese and South Asian video game industries. The company emphasises on online games and provides data to game developers, publishers, investors and suppliers to make better decisions and navigate these markets.