India's online casual gaming segment to grow at 29% CAGR

India's online casual gaming segment to grow at 29% CAGR

Last updated: Jun, 2021

According to a report published by KPMG, Indian online casual gaming market is projected to grow at Compound Annual Growth Rate (CAGR) of 29% between FY21 and FY25 to reach Rs. 169 billion (US$ 2.28 billion) by FY25 from Rs. 60 billion (US$ 809.15 million) in FY21.

Online casual gaming is expected to become the largest sub-segment of the online gaming market in India by FY25, attributing ~ 58% to the overall revenues, according to report 'Beyond the tipping point - A primer on Casual gaming in India'. The market is expected to be driven by factors such as rising consumption, strong brand attention, rising consumer spending of the gamers in India.

In the last 3-4 years, the online gaming market has expanded to consume a significant share of time spend by Indian consumers for entertainment. In addition, COVID-19 induced restrictions have also contributed to the growth of online gaming market in India in terms of consumption and monetisation.

In 2020, India registered the highest share of game downloads in the casual mobile gaming market globally, registering 7.3 billion downloads in the first and third quarter of 2020, accounting for 17% of the total mobile game downloads worldwide.

Further, post lockdown 2020, the time spent on online gaming and the monthly active gamers for the top 100 mobile games, increased by 10-15%, signalling the formation of a new normal.

The overall growth in digital consumption in India has supported online gaming development to make it a mainstream entertainment choice.

Also, supply side factors such as extended supply of world class titles, games with local content, new features such as multiplayer and social aspects improved the online gaming experience and expanded the investor interest.

Mr. Satya Easwaran, Partner and Head of Technology, Media & Telecom, KPMG In India stated that the rapid growth of the digital consumption backed up by the development of the digital infrastructure in India played a significant role in the last five years to attract stakeholders and investors to focus on potential areas for business growth including online gaming. The availability of leading titles, online gaming market in India taking some string developments.”

“In FY21 ~ 420 million gamers engaged in online casual gaming in India making it to emerge as the largest attributor to the overall online gaming market in the country,” stated, Mr. Girish Menon, Partner and Head, Media and Entertainment at KPMG in India.