India's Mobile Gaming Revolution: The Rapid Rise and Future of a Booming Market

Introduction: From the Early Days to the Present of the Indian Gaming Industry

Despite its relatively short history, the Indian gaming industry has experienced rapid growth. PC games began to emerge in the late 1990s, but significant development started with the spread of the internet in the 2000s.

The true turning point, however, was the proliferation of smartphones in the 2010s. Particularly, the introduction of Jio's affordable 4G data plans in 2016 massively expanded the mobile gaming market (IAMAI & Kantar IMRB, 2019). Today, India boasts the second-largest number of smartphone users in the world, the majority of whom play games.

Indian Mobile Gaming Market by the Numbers

As of 2023, the Indian gaming market has seen remarkable growth.

Gaming market size: Estimated at $2.6 billion in 2023, projected to reach $7.2 billion by 2029 (Mordor Intelligence, 2023).
Number of mobile gamers: Approximately 520 million in 2023, expected to exceed 620 million by 2025 (KPMG-Google, 2023).
App downloads: In 2022, India accounted for about 19% of global game app downloads (App Annie, 2022).

Notably, most of this growth is driven by mobile games. About 90% of gaming revenue in India comes from mobile games (Niko Partners, 2023).

Why India Became a Mobile Gaming Powerhouse

3.1 Proliferation of Affordable Smartphones

Affordable Android smartphones from Indian and Chinese manufacturers dominate the market. By 2023, the average smartphone price dropped to around $130 (IDC, 2023).

3.2 Cheap Data Plans

The impact of Jio is immense, with plans costing less than $0.1 per GB being common (TRAI, 2023).

3.3 Growing Young Population

More than half of India’s population is under 25, with this young demographic being the primary gaming users (UN Population Fund, 2023).

3.4 Advancements in Localization

Games are increasingly localized into regional languages such as Hindi and Tamil. Approximately 43% of users prefer games in their native language (Google-KPMG, 2023).

Organizations Supporting the Indian Gaming Industry

With industry growth, supporting organizations have also developed.

Indian Digital Gaming Society (IDGS): Established in 2020, aiming to build networks among developers, publishers, and investors.
Mobile Premier League (MPL): A platform for esports and mobile games, boasting 90 million users as of 2023.
Lumikai: India’s first VC fund focused on gaming and interactive media, with over 20 investments by 2023.

These organizations support the industry in various ways, including funding, talent development, and international expansion.

Characteristics of Mobile Game Development in India

5.1 Adapting to Low-End Android Devices

Approximately 95% of smartphones in India are Android, many of which are low-spec. Developers need to create lightweight and optimized games (Statcounter, 2023).

5.2 Dominance of the Freemium Model

The freemium model, where games are free to download and revenue is generated through in-game purchases, is prevalent due to the relatively low willingness to pay among Indian users (App Annie, 2022).

5.3 Popularity of Local Content

The "Real Cricket™" series by Indian developer Nautilus Mobile, known for its detailed cricket simulation, has achieved 100 million downloads by 2023, reflecting the popularity of locally relevant content.

Challenges in the Indian Gaming Market

6.1 Difficulty in Monetization

While user numbers are high, the percentage of paying users is low. As of 2023, only 1-2% of users are paying (IAMAI, 2023).

6.2 Infrastructure Disparities

Significant differences exist between urban and rural internet environments. While rural gamers are increasing (from 57% to 66%, 2022-2023), stable connectivity remains a challenge (KPMG, 2023).

6.3 Talent Shortage

There are few educational institutions specialized in gaming, leading to a shortage of skilled developers, particularly in game design and 3D modeling (NASSCOM Game Developer Conference, 2022).

Government Initiatives and Legal Environment

The Indian government is beginning to recognize the potential of the gaming industry.

Start-up India: Provides funding assistance and tax incentives for gaming startups.
Skill India: Designated game development skills as a focus area in 2022.

However, some states have stringent regulations on real-money gaming (RMG), impacting the industry (Tamil Nadu's RMG ban, 2023).

Future Prospects of the Indian Gaming Market

8.1 Spread of 5G

The number of 5G users is expected to exceed 100 million by the end of 2023 (Ericsson, 2023), paving the way for the spread of cloud gaming and AR/VR games.

8.2 Growth of Esports

Esports revenue was around $100 million in 2023, projected to exceed $300 million by 2027 (Niko Partners, 2023).　See our articile on eSports in India.

8.3 Global Expansion of Indian Games

Successes like "Ludo King" and "Real Cricket™" are driving Indian games to target the global market. By 2025, the export value of Indian games could reach $1 billion (IAMAI, 2023).

Conclusion: India, the Land of Opportunities

The Indian mobile gaming market is experiencing unparalleled growth driven by its vast population, rapid digitalization, and unique cultural backdrop. Despite the challenges, government support, industry organizations, and passionate developers and users are propelling this market forward.

For global gaming companies, India is not just a consumption market but a hub of innovation and talent. The Indian gaming revolution has just begun. Are you ready to be part of this great story?

Jet Research is here to assist global companies in entering the Indian market. We offer not only research but also support for game development targeting the Indian market. Feel free to contact us.