India’s Gaming Market Hits $3.8 Bn In FY24, Making Up 30% Of New Media Revenue: Report

India’s gaming industry continues to boom, generating USD 3.8 billion in revenue in FY24 and claiming 30 per cent of India’s broader new media market, which reached USD 12.5 billion. A new report by Lumikai shows growth in mobile gaming, user engagement and monetisation, indicating that the market is on track to cross USD 9.2 billion by FY29, with a projected CAGR of 20 per cent.

Rising Market Share And Revenue Growth

The report positions gaming as the fastest-growing segment of India’s new media industry, which grew at a CAGR of 16 per cent in FY24. Gaming and Video/OTT together contributed over 60 per cent of the USD 12.5 billion market, cementing gaming’s role in the broader media landscape. Sustained growth in in-app purchases (IAPs) and ad revenue has fueled gaming’s market expansion, making it the largest component of new media revenue.

Increased User Base And Time Spent On Gaming

India’s gamer base grew by 23 million in FY24, surpassing 590 million users and ranking as the second-largest mobile gaming market globally. Average weekly gaming time increased by 30 per cent, from 10 to 13 hours per user. This high engagement has contributed to India’s growth as a key player in global gaming, with mobile downloads in India 3.5 times larger than in the United States or Brazil.

Revenue Trends And Monetisation Insights

IAP revenue continues to lead the monetisation growth in India’s gaming market, with a 41 per cent year-on-year increase, driven largely by midcore games, which saw a 53 per cent growth. Casual and hyper-casual games showed stable revenue gains of around 10 per cent, while Real Money Gaming (RMG) platforms faced challenges from GST costs and tax regulations, limiting profit margins despite a busy sports season.
India’s Annual Revenue Per Paying User (ARPPU) reached USD 22, a 15 per cent increase from FY23. With 25 per cent of gamers now making in-game purchases, the paying user base reached 148 million, up by 8 million from the previous year. Notably, 60 per cent of RMG-paying users also spend on midcore games, showing an overlap in gaming preferences and a shift toward more sophisticated, cross-genre gaming habits.

Demographic Shifts In the Gaming Market

The report highlights a more diverse user demographic. Female gamers now make up 44 per cent of the player base, up from 41 per cent in FY23, primarily engaged in casual games. The majority of India’s gamers (66 per cent) reside in non-metro areas, with a high concentration of young, first-time earners between 18 and 30 years old. This group shows an increased willingness to pay for gaming content and experiences, driven by motivations like unlocking new content and upgrading in-game items.

Digital payment usage has also become widespread, with 83 per cent of users opting for UPI and digital wallets for in-game purchases. A majority (47 per cent) are open to ad-supported content, preferring free access with microtransactions over subscriptions.

Interactive Media Engagement And Regional Insights

Gaming engagement now doubles that of social media platforms, with users spending 25 per cent more time on interactive media and gaming platforms. A pan-India survey indicates that payment behaviours and gaming preferences vary by region: gamers in West India show the highest propensity to pay, while RMG remains particularly popular in North and South India. Casual games remain the favourite genre nationwide, followed closely by midcore games.

Government And Industry Support

The Indian government has recognised gaming as a ‘sunrise sector’ and has rolled out frameworks for taxation and regulation to support its growth. Initiatives include establishing the National Animation, Visual Effects, Gaming and Comics (AVGC) Centre of Excellence in collaboration with IIT Bombay. Industry events, such as the WAVES Summit scheduled for February 2025, are expected to further bolster India’s gaming ecosystem and attract investment.

This comprehensive analysis of India’s gaming industry was based on data from Lumikai’s proprietary research, expert interviews and third-party analytics, presenting a detailed overview of the growth, user trends and monetisation patterns.