Online Gaming Industry Projected To Worth Rs 29,000 Crore By FY25
- ByStartupStory | June 17, 2021
According to a study released on Thursday by KPMG in India, the online gaming segment in India is expected to grow at a CAGR of 21 percent over FY21-FY25 to reach a size of Rs 29,000 crore. In FY21, the online gaming industry was estimated at Rs 13,600 crore. Of the total size, the online casual gaming sub-segment is the most significant one and stands at Rs 6,000 crore accounting for 44 percent of the total online gaming revenues.
In terms of users, 42 crore gamers of the online casual gaming sub-segment accounted for 97 percent of total gamers last year and are expected to maintain this share by FY25 going ahead. Among key growth drivers for the gaming industry are macro factors like internet penetration, the young population increasing smartphone penetration, and the adoption of digital payments adoption.
Overall growth in digital consumption has significantly helped online gaming in becoming a mainstream entertainment option. Besides, there are supply-side factors like an increase in games with localized content, supply of world-class titles, new features and updates such as multiplayer and social elements added to games, and an increase in investor interest at large.
Further, Covid-19 induced lockdowns in 2020 were a tipping point in terms of online casual gaming consumption with most metrics like DAUs, average session times MAUs, and even paid user conversion rates seeing strong traction.
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