India's online gaming sector may cross $9 billion by 2029: Report

The online gaming sector in India is expected to grow by over two-fold to $9.1 billion by 2029, largely dominated by real money games, a joint report by real money gaming platform WinZO Games and IEIC said on Wednesday.

The report, released at the Game Developers Conference (GDC) in San Francisco, said India's online gaming market revenue was $3.7 billion in 2024, with the real money gaming segment accounting for around 86 per cent market share.

"The online gaming industry in India is on an unprecedented growth path, backed by a projected market size of $9.1 billion by 2029 and the potential to unlock up to $63 billion in investor value by 2029. As we continue to push boundaries in technology innovation, IP creation, and engagement, WinZO remains committed to shaping India into a global gaming powerhouse," WinZO co-founder Paavan Nanda said.

According to the data shared in the report, India is home to 591 million gamers -- about 20 per cent of the total global gamers, around 11.2 billion mobile game app downloads with strong emerging alternatives to Google Playstore, and around 1,900 gaming companies, employing 1.3 lakh highly skilled professionals.

The sector has received $3 billion in FDI, out of which 85 per cent of the FDI was channelled to the Pay-to-Play segment.

"In 2024, India's online gaming sector's size was $3.7 billion, and by 2029 (estimated), it will touch a $9.1 billion market size. RMG (Real Money Gaming) continues to dominate, contributing 85.7 per cent of the sector's revenue, valued at $3.2 billion, and growing at 18 per cent during 2024," WinZO Games and the Interactive Entertainment and Innovation Council (IEIC) report said.

The share of RMG is expected to moderate from 85.7 per cent currently to 80 per cent by 2029, and the share of non-RMG is expected to increase from 14.3 per cent to 20 per cent during the same period, it added.

According to the report, the Indian online gaming sector has the potential to unlock $63 billion worth of value for investors.

India's only publicly listed gaming company Nazara commands the highest premium among the globally listed gaming companies.

"Similar multiples applied to the current online gaming sector's market size of $3.7 billion conservatively estimate a minimum of $26 billion in investor value waiting to be unlocked through IPOs. Once the market reaches its projections of $9.1 billion by 2029, it will unleash $63 billion of investor value," the report said.

It estimates that India's digital economy, coupled with the booming game developer ecosystem and conducive regulatory regime, will help the sector achieve a $60 billion market size by 2034, including creation of over 2 million jobs, increased FDI, and export of Indian IP.