Business Standard

Online gaming industry to worth Rs 29,000 crore by FY25, says KPMG

Overall growth in digital consumption sophistication has helped online gaming become a mainstream entertainment option.

Online gaming, games, fantasy sports, e-sports

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The online gaming segment in India is projected to grow at a CAGR of 21 per cent over FY21-FY25 to reach a size of Rs 29,000 crore, according to a study released on Thursday by KPMG in India.
In FY21, it was estimated at Rs 13,600 crore. Of the total size, online casual gaming sub-segment is the most significant one and stands at Rs 6,000 crore accounting for 44 per cent of the total online gaming revenues.
In terms of users, the online casual gaming sub-segment at 42 crore gamers accounted for 97 per cent of total gamers last year and is expected to maintain this share by FY25 going ahead, said the study.
However, the segment is significantly under indexed on monetisation with lower average revenue per user (ARPU) as compared to gaming markets like Indonesia, Malaysia and South Africa which are comparable in terms of the per capita GDPs.
Among key growth drivers for the gaming industry are macro factors like increasing smartphone penetration, internet penetration, young population and adoption of digital payments adoption.
Overall growth in digital consumption sophistication has helped online gaming become a mainstream entertainment option.
Besides, there are supply side factors like increase in supply of world class titles, games with localised content, new features such as multiplayer and social elements added to games, and an increase in investor interest at large.
Further, Covid-19 induced lockdowns in 2020 was a tipping point in terms of online casual gaming consumption with most metrics like MAUs, DAUs, average session times and even paid user conversion rates seeing strong traction."Poised at a 3x growth in revenues between FY21-25, we have been privy to the keen interest from corporates and investors who want to ride the incredible wave of opportunity that the business of online casual gaming has to offer," said Satya Easwaran, Partner and Head of Technology, Media & Telecom at KPMG In India.
"Having seen rapid growth in the last five years on account of the growth in digital infrastructure in the country coupled with the availability of leading titles, India's online gaming segment is now a serious business with India's gaming market being overwhelmingly mobile first," he said.
Girish Menon, Partner and Head, Media and Entertainment at KPMG in India, said that with technologies like cloud gaming on the anvil and the adoption of latest AI/ML led technologies, online casual gaming in India is serious business -- both for players in the ecosystem as well as investors.
"We envisage the online gaming segment to be among the largest segments of M & E industry in years to come, garnering a share of both time and wallet of the Indian digital billion," he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jun 17 2021 | 2:52 PM IST

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