India’s gaming market is set to become $7 Bn in FY2026: RedSeer and Lumikai

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Lumikai and Redseer have come up with a comprehensive report on the gaming space in India in their recent report titled “India Gaming Report 2021 by Lumikai and Redseer

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India’s gaming market is set to become $7 Bn in FY2026 (more than 3X of the market in FY2021) while in-app purchases are the fastest growing revenue streams of the market with an increasing number of paid users and their growing propensity to pay is driving the growth.

Paid gamers in India are set to become ~235 million in 2025, from 80 million gamers in 2020 which will drive the growth of paid gamers.

  1. While real-money games are the largest source of revenue for the market, IAPs will grow faster for the next 5 years at 30-40% with the rise of paying users in Casual & hyper-casual gaming.
  2. Further, Non-RMG gaming segments are expected to grow faster than the market growth rate, with eSports and Streaming are expected to grow at 40-45% CAGR for the next 5 years.
  3. An average gamer spends $16-a-year on gaming, and it takes ~1 week to start paying to play games.

Apart from the increasing maturity of gamers and their propensity to pay, gamers are embracing the trend of playing “India-first content” games. – 60%+ gamers are willing to play games with an Indian central theme or characters like from mythology or celebrities etc.

Mukesh Kumar, Engagement Manager at RedSeer, said,

“This is an exciting time for the gaming ecosystem in India. Access to gaming is democratized with increasing participation from Tier-2 cities and beyond, gamers are maturing in the way they play different gaming genres, and unprecedented growth in new-paying users (NPU) to drive the overall gaming market to become 3-times in the next 5 years. While real-money gaming (RMG) will continue to dominate the market, in-app purchases (IAP), virtual gifting, etc to become mainstream spend categories among paid gamers, and the revenue from IAP is expected to outgrow overall India’s gaming market growth rate,”

Justin Keeling, General Partner at Lumikai Fund, shared,

“This inaugural report represents the most in-depth analysis of India’s gaming market ever undertaken, and the goal was to face the core assumptions on the true potential of the market. What has emerged is a picture of the market that already exceeds preconceived notions around size, growth, sophistication, and most importantly propensity to pay. India’s gaming market is due to 3x in value to over $7B by 2025, driven by a healthy diversity of monetization mechanics that indicate plenty of white spaces for new investment, and massive potential for a new generation of leaders across the gaming value chain. We’re excited to continue being at the forefront of India’s gaming investment landscape as the market matures and evolves to the next level.”

Editorial Staff
Editorial Staff

The Editorial Staff at LAFFAZ encompasses fandoms of startup culture, crazy researchers, data analysts and writers who decrypt strenuous information into graspable news, produce noteworthy features and compelling stories.

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