According to SensorTower’s data, India climbed to the top of the global rankings for mobile game downloads in the first nine months of 2020, with 7.3 billion installs and a 17% market share of the install volume.
More than half of India’s population is under 25, and 60% of the country’s gamers are also under 25. In March 2020, there were more than 365 million gamers worldwide, according to KPMG’s media and entertainment study.
Games being staged on mobile devices
A staggering 85% of the sector is made up of mobile users, with PC users making up 11% and tablet users making up 4%. Thirty percent of people use the internet. Important Indian gaming and eSports companies brought about $68 million in revenue in 2019, according to Inc42.
The prevalence of high-speed 4G internet, the lowest data rates in the world, and the availability of inexpensive smartphones, which have been expanding at a rate of 15% annually over the last five years in India, have all contributed to the dominance of mobile gaming in the gaming business. These elements, together with the popularity of mobile gaming, contribute to the increased need for content among young people in India.
An estimated 34 million Indians were daily players of PUBG Mobile at its height. A staggering 175 million downloads of the battle royale game were made by Indians alone.
According to Deloitte’s Telecom, Media and Telecommunications Predictions study, better disposable earnings at purchasing power parity (up 25% from 2016 levels) and a greater uptake of digital payments translate into a greater readiness to pay for services.
How COVID-19 made us stop watching TV
Media and entertainment consumption patterns changed as a result of the COVID-19 epidemic; KPMG predicts a 20% decline in 2020 in traditional markets including film, TV, and print. On the other hand, they predict that gaming and the consumption of digital media will change quickly, with worldwide growth expected to increase by up to 33% and reach $25.4 billion in 2021.
Gaming platforms like Google Play and the Apple App Store, which report 50% increases in activity during lockdown, support this. Indians were gaming for 218 minutes, compared to 151 minutes prior to lockdown, according to BARC & Nielsen.
According to data from Tracxn Technologies, investors such as Sequoia Capital and Kalaari Capital have already increased their stakes by 78% in 2020 to $173 million. As of right now, more than 400 gaming companies operate in India, according to Maple Capital Advisors.
The growth in influencers pushing Indians to play more games and the growing need for virtual enjoyment with friends, family, and peer groups are the main causes of the gaming boom. More diverse content is in demand as digital viewing becomes more widespread.
Mobile games address consumers’ need for connection during trying times by acting as virtual social places. Gaming transcends national boundaries and penetrates both Tier 1 and Tier 2 cities as well as rural and urban locations.
According to an Inc42 analysis on the state of eSports in India, before to the epidemic, eSports accounted for little over 9% of industry revenue and 4% of the country’s user base. Over the following three years, this industry is predicted to increase at a rate of 36% annually, reaching a projected revenue of $95 in 2020. Compared to 6 million in 2017, the Indian eSports audience for competitive gaming competitions has already surpassed 17 million in 2020.
According to Newzoo, due to the shorter development times and reduced development costs, mobile gaming will be the platform of choice for IP holders looking to expand their brands into new media. The most played game genres are hypercasual and casual, which include well-known titles like Carrom Pool, Talking Tom, and Hunter Assassin, respectively.
While they should still prioritize mobile experiences, developers could adopt fresh viewpoints that are more welcoming to female users.
The ways in which advertising is changing
By using genuine brand message, advertisers can effectively target people who are already avid gamers. Cohorts in gaming have comparable demographic and behavioral characteristics.
According to a Newzoo study, 80% of Indians typically eat or drink while engaging in gaming. FMCG brands need this information to construct their marketing strategies. These platforms are useful for brands looking to increase engagement and trust among prospective consumers.
Over the past three years, the gaming business in India has risen by almost 60%, and there are no indicators that this growth will slow down. Long-term, it could surpass Indian box office receipts, which are currently more than twice as high as the gaming sector. The product strategies and monetization models are reflective of the value-conscious and price-sensitive nature of the common customer.
The majority of game revenue is derived from advertising, with user in-app purchases accounting for a smaller share. As of now, the business model has been clearly free-to-play, setting a low entrance barrier for potential players and serving as the norm in mobile gaming.
This is beginning to change. Engaged gamers are more inclined to subscribe to game services than other consumers of media and entertainment, according to the white paper Understanding Value in Media: Perspectives from Consumers and Industry. This is not how active fans of sports, music, or video behave.
Talent and regulations are top priorities for the administration.
The Indian government is anticipated to become increasingly involved in promoting and overseeing the gambling sector as it expands.
Narendra Modi, the prime minister of India, has demanded that content promoting native Indian culture be developed. Authorities are already keeping an eye on business data privacy practices, including the transport and storage of Indian users’ data.
Then there’s the rapidly growing fantasy sports industry, which brought in $338 million in revenue in the most recent fiscal year despite not yet having independent legal status. The first draft guidelines for the conduct and regulation of fantasy sports were issued by the government’s planning think tank, Niti Aayog. However, the report also pointed out that the fantasy sports industry may see $1 billion in foreign direct investment in the next few years.
In order to promote new career routes in gaming and to gather a sizable talent pool for the business, the Indian government is also anticipated to set up interfaces between industry and university.
