ReportLumikai
Levelling Up: State of India Interactive Media & Gaming Research FY'24
1 Nov 202415 pages~13 min full read
The Indian interactive media and gaming market reached a $3.8 billion valuation in FY24 and is projected to grow at a 20% CAGR to exceed $9.2 billion by FY29.
See it on page 3In-app purchase revenue grew 41% year-on-year, with the midcore segment serving as a primary growth driver after experiencing a 53% increase.
See it on page 6India’s gaming population has reached 590 million, including 148 million paying users who now spend an average of 13 hours per week gaming, a 30% increase from previous metrics.
See it on page 4The player demographic is increasingly diverse, with 44% of gamers being women and 66% residing in non-metro cities.
See it on page 7Real Money Gaming (RMG) faces margin compression and rising user acquisition costs due to recent GST regime changes, though 60% of RMG payers also spend money on midcore titles.
See it on page 5Digital payment adoption is near-ubiquitous among gamers, with 83% of users utilizing UPI or digital wallets for transactions.
See it on page 8The government has officially designated gaming as a 'sunrise sector' and integrated esports under the Ministry of Youth Affairs and Sports, establishing a clearer regulatory distinction between RMG and Free-to-Play titles.
See it on page 11The Indian interactive media and gaming market reached a valuation of $3.8 billion in FY24, representing a significant 30% share of the country’s broader $12.5 billion new media sector. Growth is characterized by a 20% five-year projected CAGR, with expectations to exceed $9.2 billion by FY29. This expansion is primarily driven by a 41% year-on-year increase in in-app purchase revenue, particularly within the midcore segment, which grew by 53%. While Real Money Gaming (RMG) remains a major contributor, recent changes to the GST regime have led to margin compression and increased user acquisition costs for operators in that sub-sector.
The player base in India has expanded to 590 million gamers, with 148 million identified as paying users. Engagement metrics show a 30% increase in average weekly time spent, rising from 10 to 13 hours. Demographic data reveals a diversifying landscape where 44% of gamers are women and 66% reside in non-metro cities. Notably, there is a high degree of overlap between gaming categories, as over 60% of RMG paying users also spend money on midcore titles. Payment behaviors are heavily modernized, with 83% of users utilizing UPI or digital wallets for transactions.
The regulatory environment is shifting toward formal recognition and support, with the government identifying gaming as a "sunrise sector." New frameworks distinguish between RMG and Free-to-Play (F2P) games for taxation purposes, while esports has been officially integrated under the Ministry of Youth Affairs and Sports. These findings are based on a mixed-methods research design conducted between May and October 2024, incorporating a primary survey of 2,269 smartphone users across 16 Indian cities alongside secondary analysis of financial statements and proprietary industry data.
