India’s Gaming Business – a deeper Look
India had a conservative outlook toward the gaming industry until the 2000s when the industry saw a major makeover in India. With the ever growing youth population, which now stands at 350 million, and the increasing access to PC and gaming parlors, the future of the gaming industry is indeed bright in the country.
Earlier, the games and consoles created by Nintendo and Sega were not accessible to the middle-income group because of their high prices. However, with the advent of high-speed internet, it has become easier for gamers from the economical sections of the society to access them. Games like the Call of Duty, Counter Strike, FIFA, and DOTA are known for their high quality, action and multiplayer themes. Although designed in the western market, they are highly popular in the Indian market too because of the reformed gaming platforms that now included social media platforms like the Facebook. In fact, Facebook’s Farmville and Mafia Wars got millions of Indians hooked.
Status of global gaming industry and India’s contribution
One can conceive how fast the gaming industry is expanding, owing to the million dollar contribution it has in the global economy. According to an evaluation in 2017, the valuation of the industry was $108.9 billion with a year-on-year growth of 7.8%. Breaking down the percentage of growth rate, it was found that the contribution of the Asia Pacific region was 47%; India ranked 17th in the list of contributors in the APAC region, generating $818 million with a CAGR of 11.14 percent. Needless to say, it is one of the largest markets for the global gaming industry.
In fact, there was a drastic increase in the numbers in the next two years. In 2019, the industry has been estimated to reach USD 890 million and is estimated to have an annual growth rate of 14.3%. The mobile gaming industry is estimated to lead at 71% share.
Why is India a future hub of the gaming industry?
· World’s largest youth population
· Presence of some of the biggest development centers like Nvidia, Microsoft, Zynga, Electronic Arts, Playdom, Sony, Digital Chocolate, etc
· Huge skills base across IT, testing and arts
· Huge base of creative talent
· World’s second largest Internet population
PC gaming in India
PC gaming is fast becoming a favorable choice among youngsters who have easy access to quality of game play, affordability and availability of top-end hardware and software systems and improved Internet bandwidth.
India has more than 60% of the population below 35 years of age, which makes it one of the largest potential market for gaming. Certainly, the gaming industry is here to stay!
With the advent of smartphones, gaming has become an easy means of entertainment even while one is on the move. Revenue in the Mobile Games segment is expected to show an annual CAGR of 9.8%, which resulted in a market volume of USD 943 million in 2022. In fact, the user penetration in the mobile gaming industry is at 19.9% in 2018 and is expected to hit 26.0% in 2022. Owing to the increasing demand of the mobile gaming industry, 95% of the games are mobile-centric.
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