India Mobile Games Market Outlook to 2030

India Mobile Games Market Overview

• The India Mobile Games Market is valued at USD 148 million, driven by the proliferation of smartphones and increasing internet accessibility across urban and rural areas. This growth is further fueled by the rising popularity of gaming among various demographics, particularly the youth, which has led to a surge in mobile game downloads and user engagement, the number of mobile gamers in India is expected to reach 500 million, underlining the potential for further market expansion.
• Key cities such as Bangalore, Mumbai, and Delhi are dominant in the mobile games market due to their high concentration of tech-savvy populations and robust internet infrastructure. Additionally, Bangalore serves as a major hub for game development companies, contributing to innovative gaming experiences. The urban lifestyle and entertainment demands of these cities are driving the market, as residents increasingly seek engaging and interactive forms of leisure.
• Gaming taxation policies are evolving in India, posing challenges for developers and players alike. In 2023, the GST (Goods and Services Tax) on online gaming was set at 28%, creating substantial financial implications for both consumers and the gaming industry. This high tax rate has led to debates on the sustainability of online gaming businesses, as it impacts affordability for players. As discussions continue regarding potential revisions, developers are urged to adapt their pricing strategies accordingly to remain competitive. The implementation of fair taxation could encourage growth and investment in the sector.

India Mobile Games Market Segmentation

The India Mobile Games Market is segmented by game type and by Platform type.

• By Game Type: The market is segmented by game type into action games, adventure games, casual games, and strategy games. Among these, casual games have a dominant market share, primarily due to their accessibility and broad appeal to diverse age groups. The popularity of games like Candy Crush and PUBG Mobile exemplifies how casual gaming attracts players who may not typically engage in traditional gaming formats. Furthermore, the integration of social features in casual games enhances user retention, making this sub-segment particularly lucrative.
• By Platform: The market is also segmented by platform, comprising Android, iOS, and Windows. The Android platform holds a significant market share, attributed to its widespread availability and affordability of devices in India. The vast array of applications available on the Google Play Store, including both free and paid games, further drives user engagement on this platform. With continuous improvements in mobile technology and game development, Android remains the preferred choice for most mobile gamers in India.

India Mobile Games Market Competitive Landscape

The India Mobile Games Market is characterized by a few major players, including local developers and international companies. This competitive landscape is marked by the presence of companies like Tencent, Activision Blizzard, and Zynga, which significantly influence market trends through their innovative offerings and robust marketing strategies.

India Mobile Games Industry Analysis

Market Growth Drivers

• Increasing Smartphone Penetration: India has witnessed growth in smartphone penetration, with over 1.2 billion mobile connections as of early 2023, accounting for 85% of the population. The smartphone user base is expected to reach around 800 million by 2025, driven by affordable devices priced below 10,000. This increase in smartphone adoption enables access to a wider array of mobile games, catering to diverse demographics. Furthermore, the Indian smartphone market is projected to grow by 13% annually, boosting the mobile gaming sector's expansion.
• Rising Internet Accessibility: Internet accessibility in India has improved remarkably, with over 600 million internet users recorded in 2023, representing 44% of the population. The governments Digital India initiative aims to enhance connectivity, targeting 1.3 billion people by increasing broadband coverage to rural areas. As of 2022, internet penetration is expected to reach 70% by 2025, driven by affordable data plans and the rollout of 5G technology, which will facilitate seamless online gaming experiences. The average monthly data consumption per user is projected to exceed 20 GB by 2024.
• Surge in Mobile Payment Solutions: The mobile payments landscape in India has grown rapidly, with transactions reaching 7.4 trillion in 2022, a significant leap from previous years. As digital wallets and payment applications proliferate, the number of UPI (Unified Payments Interface) transactions crossed 8 billion in 2023, facilitating in-game purchases seamlessly. This surge in mobile payment solutions enhances the gaming experience by allowing easy monetization through microtransactions and subscriptions, driving growth in the mobile gaming sector. As of 2024, mobile payment users are estimated to be around 500 million.

Market Challenges

• Regulatory Hurdles: Regulatory challenges present obstacles to the mobile gaming industry in India. The government has initiated discussions regarding a comprehensive regulatory framework for online gaming, addressing concerns related to gambling and addiction. Currently, there are no unified regulations, leading to a fragmented market. Various state governments have implemented different rules, creating confusion among developers and users. This lack of clarity hampers investment in the sector, which is crucial for innovation and growth. Compliance costs pose additional burdens for gaming companies, impacting their operational strategies and financial planning.
• Monetization Issues: Monetization remains a challenge for mobile game developers in India, with many struggling to convert free users into paying customers. A significant portion of mobile gamers is reluctant to spend money on in-app purchases, primarily due to economic constraints and a strong preference for free-to-play models. This trend creates difficulties for developers aiming to sustain their businesses and improve profit margins. The pressure to innovate monetization strategies is increasing as the market evolves, and developers must find effective ways to encourage spending among users.

India Mobile Games Market Future Outlook

Over the next five years, the India Mobile Games Market is expected to show growth, driven by continuous technological advancements and the increasing penetration of smartphones. The market will benefit from enhanced gaming experiences through augmented reality (AR) and virtual reality (VR), alongside a growing interest in e-sports and competitive gaming. Government initiatives promoting digital literacy and internet accessibility will further catalyze user engagement, leading to a more vibrant gaming ecosystem.

Future Market Opportunities

• E-sports Growth: The e-sports segment in India is experiencing rapid growth, with the audience expected to surpass 100 million by the end of 2024. The country hosted over 100 e-sports tournaments in 2023, attracting significant investments and sponsorships, estimated to reach 500 crore. This surge in interest is fostering a robust ecosystem for mobile gaming, as gamers seek competitive platforms. Additionally, leading game developers are investing in e-sports titles tailored for Indian audiences, creating opportunities for innovation and engagement within the mobile gaming space. The trend highlights a promising avenue for future growth.
• AR/VR Integration: The integration of Augmented Reality (AR) and Virtual Reality (VR) into mobile gaming presents a lucrative opportunity for growth. By the end of 2024, the AR gaming market in India is projected to reach 8,000 crore, driven by advances in technology and user interest. Currently, over 25 million users are engaging with AR-based applications, indicating a strong market readiness. Game developers are increasingly incorporating AR features to enhance user experience, leading to immersive gameplay. As the technology becomes more accessible, it is expected to attract a broader audience to mobile gaming. Source: