The increasing smartphone penetration and decreasing data tariff have been two major factors driving the gaming market
Market intelligence predicts the global gaming landscape to exceed the valuation of $200 Bn by 2025
More than 628 million Indians will be playing digital games on their smartphones by the end of 2020
Investors are always on a lookout for the next big market player. More than that, they are always looking for the opportunity to groom a high-value venture into a domain leader by enabling it to achieve its full potential. Today, the bourgeoning gaming industry the world over is replete with such ventures and opportunities.
The increasing smartphone penetration and decreasing data tariff have been two major factors that have accelerated the industry’s growth over the past few years. Rapidly entering the mainstream, market research estimates that nearly 30% of the world’s population was playing games in 2018 – and this percentage has only risen since.
With innovations taking place in this space faster than we can think, along with ever-growing investor interest, it is difficult to imagine that gaming was once considered a niche market. Astride these developments, market intelligence predicts the global gaming landscape to exceed the valuation of $200 Bn by 2025.
The picture of the gaming industry in India is painted by a similar set of colours although it is yet to achieve the vividness of its international counterpart. This provides matchless opportunities for Indian innovators to disrupt the sunrise sector and gain investor trust.
For this, they need to put their finger on the pulse of their target demographic and deliver value that is not only in sync with the expectations of Indian consumers but also exceeds them. Thankfully, both innovators and investors are showing profound cognizance of this point.
Tap To Begin: India’s Gaming Industry At A Gance
It would be an understatement to call the twenty-first century the Age of Innovation and India one of the world’s top innovation hubs. Led by a driven breed of new-age innovators – and catalyzed by cutting-edge technologies – the entrepreneurial revolution has transformed almost every sector and industry both in India and overseas. The Indian gaming sector is no exception.
Be it arts and entertainment or gaming, the country’s new-age consumers are consuming content like never before and are always excited to experience superior offerings. Naturally, the rise of this “New India” is being facilitated by a digitization-led tech-tonic shift. A majority of Indians, for instance, boarded the gaming wagon through digital games such as Temple Run, Subway Surfer, Candy Crush and, later, PUBG, Clash of Clans, Dream11, etc.
In the past two years especially, the Indian gaming space has witnessed remarkable innovation. The momentum of this development, according to recent estimates, is carrying the industry on a growth path at a rate of 20-25% year-on-year.
Further, more than 628 million Indians will be playing digital games on their smartphones by the end of this year. An interesting point to observe is that the demographic targeted by gaming players is also evolving. Once comprising hardcore gamers and the youth, the consumer base has been steadily expanding over the years to include those more advanced in age.
Tap Twice To Exit: Increasing Investor Interest
As is clear, gaming is finding more leg-room aboard the entrepreneurship and space is only going to expand with time. Taking a cue from entrepreneurs, investors – be it angels or VCs – across India are also growing increasingly experimental with their investments.
Modern investors, especially in India, are enriching their investment portfolio by proactively supporting innovators that possess high potential to drive growth, disruption, or social impact – preferably, all three. And gaming is fast finding favour among the investor community as one such domain alongside other new-age sectors such as cleantech, healthtech, AR/VR, etc.
Not only does this industry provide incredible scope for market players to drive innovation but also to capture a significant market share. Why? Because gaming in India is still evolving; trends that drove the market a year or two ago are fast becoming passé as new trends are taking their place. So, while it is difficult to predict what trends will emerge or what genre of games will appeal to the masses in the coming years, one thing is certain: the industry will continue to grow for the foreseeable future.
This is one of the main reasons this space is attracting remarkable investor interest. Investors, after all, seek to generate lucrative returns on their investment as well as profitable exits. And market analysts claim that online gaming in India is poised to achieve a valuation of more than INR 12,000 Cr by 2023, establishing it as one of the country’s booming sectors. At the rate the industry is progressing, it is set to exceed the stipulated estimated in advance – it is no longer a question of if but when.
