Mobile games and applications market in India is expected to touch INR 2,700 crore (US$ 437 million) by 2016. The growing access to mobile internet in India is opening the doors for large scale monetisation of digital content in the country. Strong smartphone growth and expanding 3G user base are expected to drive growth in this market in the coming years. Smartphone user base in India is expected to grow to 67 million this year and 382 million by 2016. Similarly, 3G subscriptions are also expected to rise from 11 million in 2011 to 56 million this year and touch 266 million by 2016.
Interestingly, while the average revenue per user (ARPU) for paid apps is expected to come down from INR 132 (US$ 2.1) in 2012 to INR 78 (US$ 1.2) in 2016, the growing 3G user base is expected to take paid apps revenues to INR 2,065 crore (US$ 334.1 million) from INR 300 crore (US$ 48.5 million) in 2012. Clearly, the changing user behaviour in the Indian consumer market has opened up the mobile gaming and applications market and it offers a huge potential for growth in the coming years.