India emerges as fastest-growing video games market in Asia

DIMAPUR — India is currently experiencing significant growth in its video games market, making it the fastest-growing in Asia. Projections suggest a remarkable 343% increase in the number of gamers within the nation from 2017 to 2027, with an anticipated total of 641.2 million gamers by 2027. Concurrently, the revenue from video games is expected to see a notable year-on-year increase of 21%, reaching $868 million in 2023.

Several factors contribute to this surge, including the rise in disposable income, increased internet connectivity, and the widespread availability of affordable smartphones. Collectively, these factors are propelling India’s video game market into a phase of robust advancement.

These insights are sourced from the recently released 2023 Niko Partners India Games Market report, spanning 79 pages. The report utilises Niko’s proprietary market model and provides a comprehensive five-year forecast through 2027. It includes both qualitative and quantitative analyses of gamer demand, behaviour, and usage across mobile, PC, and console games.

Key findings from the analysis indicate that India’s video game revenue across all platforms is projected to reach $868 million in 2023, with a significant year-on-year escalation of 21.2%. The report emphasises that India’s video game market is the most rapidly expanding in terms of both gamers and revenue. A robust projection envisions the market reaching $1.6 billion by 2027, boasting a five-year Compound Annual Growth Rate (CAGR) of 17.2%.

The growth is not limited to revenue alone. The number of gamers across all platforms is expected to surge to 444 million in 2023, marking a substantial year-on-year uptick of 12.1%. Looking ahead, the forecast indicates a continued upward trend, with the number of gamers projected to reach a staggering 641.2 million in 2027, demonstrating a five-year CAGR of 10.1%.

A notable characteristic of the Indian gaming landscape is its mobile-first orientation, with an overwhelming 96.8% of total gamers engaging through smartphones or tablets. Additionally, the report highlights that 31% of the 444.4 million gamers are expected to allocate spending towards video games in 2023, with an annual Average Revenue Per Paying User (ARPPU) reaching $6.38.

Finally, the re-emergence of popular gaming titles such as BGMI (Battlegrounds Mobile India) and Free Fire is seen as positive indicators for the industry, presenting promising opportunities for both domestic and foreign game companies looking to enter the thriving Indian market.