Summary:

According to Lumikai, India's gaming sector grew 23% year-on-year to $3.8 billion in FY24, despite a 28% GST on online gaming. The market is expected to surpass $9.2 billion by FY29, expanding at a 20% CAGR. Real-money gaming (RMG) generated $2.4 billion, while in-app purchases grew 41% year-on-year. By FY29, in-app purchases are projected to outpace RMG revenue, with a CAGR of 44%.

The shift towards non-RMG games, such as casual and mid-core games, continues, with gamers increasingly driven by leisure rather than financial gain. Mid-core games saw a 53% increase in inapp purchase revenue, while casual games experienced a 10% gain. Despite global ad spend cutbacks, ad revenue remained stable. Casual and mid-core games primarily generate revenue through in-app purchases, while RMG requires monetary deposits. RMG firms contributed $400 million in FY24, absorbing much of the GST burden. The gaming industry now accounts for 30% of the overall $12.5 billion new media market.

Source: IBEF 

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