PwC has released a report showing 10 facts will determine the growth and potential of the gaming industry in India.
Development of Indian IPs: Creating original game content that appeals to global audiences will boost India’s gaming presence internationally and foster innovation within the domestic market.
Integration of Emerging Technologies: Adoption of cutting-edge technologies such as blockchain, AI, virtual reality (VR), augmented reality (AR), and cloud gaming will drive immersive experiences, improving gameplay and user satisfaction.
Growth of Subscription-based Models (Gaming-as-a-Service): Subscription-based models, like GaaS, will enhance monetization by offering gamers ongoing access to content and fostering loyalty through continuous service delivery.
Focus on Skill-Based and Real Money Gaming (RMG): The rise in popularity of skill-based games and real money gaming will continue to be a major revenue stream, particularly in India where the RMG market reached INR 16,500 crore in 2023.
App-based Social and Casual Gaming Expansion: With the rise of smartphones and affordable internet access, social and casual gaming will experience significant growth, especially in the younger population and working professionals.
Responsible Gaming Practices: The implementation of AI-driven solutions for responsible gaming, combined with ethical standards and guidelines, will be essential to ensure sustainable growth while addressing concerns related to addiction and fairness.
Focus on India’s Cultural Heritage in Game Design: Incorporating India’s rich cultural history into games will enhance the appeal of homegrown games, creating content that resonates with both local and global audiences.
Skilled Workforce Development: The gaming industry will benefit from specialized education and training programs designed to create a skilled workforce for game development, animation, VFX, and other essential areas.
Investment in Animation, VFX, and AI: Innovations in these fields will revolutionize gaming experiences, pushing the boundaries of realism and engagement, ensuring the industry stays competitive on a global scale.
Co-regulatory Frameworks and Government Collaboration: Establishing voluntary codes of ethics in collaboration with the government will ensure long-term success, safeguarding industry growth while adhering to regulatory standards.
India gaming industry’s growth will have a transformative impact on the Indian economy, generating an additional 2–3 lakh direct and indirect jobs in the next few years, PwC said.
The global gaming revenues grew from $219 billion in 2019 to $342 billion in 2023. The global gaming revenues are estimated to grow at a compound annual growth rate (CAGR) of 8 percent to $503 billion by the end of 2028.
By 2028, the Asia Pacific region is expected to account for $181.8 billion in gaming revenues, or 54.4 percent of the global gaming revenue.
The total size of the Indian online gaming market was INR 33,000 crore in 2023. By the end of 2028, the Indian online gaming market is estimated to reach INR 66,000 crore, growing at a CAGR of 14.5 percent between 2023–2028.
The India real money gaming (RMG) market accounted for INR 16,500 crore in revenue during 2023.
The report has also identified nine challenges for the Indian gaming industry and offers strategies to address them. These include regulatory fragmentation, building sustainable business models due to the high GST impact, navigating ethical issues in monetisation, and addressing the talent gap.
Other challenges are balancing stakeholder interests, managing player engagement and mental health, creating culturally relevant games with global appeal, changing societal perceptions of gaming careers, and tackling illegal gambling and ads. Mitigating these challenges is crucial for the industry’s sustainable growth.
Baburajan Kizhakedath
