India’s gaming industry to reach INR 10,487 crores by 2026: Study

India’s gaming sector, valued at INR 6,715 crores in 2024, is expected to touch INR 10,487 crores by 2026, growing at 24% CAGR, as per the latest, ‘India Gaming Report 2024’ released by Dentsu India and IWMBuzz Media.

This increase is fuelled by an expansive base of 13.85 crore gamers in the country, of which nearly 30% engage with ad-supported gaming or make in-app purchases. The average revenue per paying user (ARPPU), which is at INR 1,610 annually, is likely to grow as developers incorporate high-quality, immersive experiences in the latest game offerings.

“A third of Indian gamers now willingly invest in their experience, through in-game purchases or ad-supported models. Esports, too, has become a phenomenon. It’s incredible to see players and
tournaments drawing the kind of attention once reserved for cricket,” said Harsha Razdan, CEO of Dentsu South Asia.

Mobile gaming, which leads the market, is driven by its adoption in tier-2 and tier-3 cities, where wide availability of budget smartphones and cost-effective data plans serve as the key growth catalysts. Young gamers, in the age group of 15-24 years, show high interest in mobile innovations, while small metros exhibit the highest enthusiasm for VR/AR experiences (20%), the report finds.

From technology-adoption standpoint, cloud gaming and cross-platform capabilities are found to be capturing interest of 10% users, indicating an increasing desire among them for integration across devices. According to Razdan, the gaming sector mirrors India’s entrepreneurial spirit, blending technology and creativity to shape a promising future.

With popular gaming tournaments like BGMI and Valorant engaging Indian gamers internationally, and the social platforms like YouTube and Twitch showcasing their skills worldwide, there is an increased interest in gaming among India's youth.

Stating that gaming provides a unique opportunity to brands to connect with audiences at a deeper level, Narayan Devanathan, president and chief strategy officer, Dentsu South Asia, observed, “The late-night practice sessions, the epic comebacks, and the unshakeable belief that this dream is worth chasing. Gaming careers are no longer ‘what ifs’; they’re real, exciting paths. And they’re just getting started.”

With developers introducing diverse gaming genres to attract a wide audience across demographics, the narrative-driven and puzzle games are seeing an uptake by casual gamers. Even the government has been playing a supportive role through initiatives such as Digital India to encourage development of local and culturally relevant game content, thus, contributing to the sector’s growth, the report mentions.

However, amidst these positive developments, the industry has its share of challenges. Growing mental health issues and performance pressures among professional gamers highlight the need for a strong support system. The report advocates for a united endeavour by brands, developers, and regulators to sustain growth.