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Online gaming industry eyes Rs 11,900 cr revenue by FY23

href="http://www.ptinews.com/news/10422893__Online-gaming-industry-eyes-Rs-11-900-cr-revenue-by-FY23$storyes">PTI:  March 08, 2019

Mumbai: A rapid growth in digital infrastructure has led to an exponential growth of online gaming, which is expected to touch Rs 11,900 crore by FY23, according to a report.

The online gaming industry that was pegged at Rs 2,000 crore in FY14 grew two times to reach Rs 4,400 crore in FY18.

The industry revenue is expected to clip at 22 percent CAGR from FY18-FY23 to touch Rs 11,900 crore, the report said.

According to a KPMG-Indian Federation of Sports Gaming report, the number of gamers and game developing companies has surged to 250 million in 2018 from 20 million and 25 million, respectively in 2010.

Mobile phones account for the majority of revenues in the country it noted as its share was 85 percent in FY17.

Increasing smartphone affordability and penetration, expanding internet user base, declining data prices were attributed as the growth drivers for mobile gaming.

Puzzle, action and adventure are the top gaming genres in the country, it said.

Fantasy sports is also witnessing increasing traction in the country due to growth of digital infrastructure and the emergence of new sports leagues, it noted.

The number of fantasy sports operators in the country has seen a 7x growth to touch 70 in 2018 from 10 in 2016. The sports fantasy users, however, has seen a 25x growth to reach over 50 million in February 2019 from 2 million in June 2016.

Among 336 consumers who were surveyed, 74 percent of users play fantasy sports 1-3 times a week, with the majority playing once a week.

"Around 20 percent of the respondents reported playing more than five times a week which indicates the growing traction of the genre in the country," it said.

The report noted that majority of users from top 7-8 cities of the country were found to be playing less frequently than some of the smaller cities in the country. Nearly 85 percent of the respondents from the major cities play fantasy sports 1-3 times a week as compared to nearly 70 percent of respondents from smaller cities who play more than four times a week on such platforms.

Around 71 percent of the respondents played fantasy cricket followed by 54 percent played football, while the non-cricket sports leagues in the country are also witnessing increasing traction, it said.

"Online gaming in India is seeing increased traction due to the growth of digital infrastructure, with fantasy sports emerging as an important segment in this space.

With the number of fantasy sports operators growing rapidly and the number of users on fantasy sports platforms expected to cross 100 million by 2020, this segment has the potential to spawn a whole ecosystem around it, and could help deepen user engagement with their favourite sports," KPMG partner and head - Media and Entertainment Girish Menon said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.