Online gaming industry will be worth Rs 29,000 crore by FY25: KPMG

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According to a study released on Thursday by KPMG in India, the online gaming segment in India is expected to grow at a CAGR of 21% between FY21 and FY25, reaching a value of Rs 29,000 crore. It was estimated to be Rs 13,600 crore in FY21. The online casual gaming sub-segment is the largest in terms of revenue, accounting for 44% of total online gaming revenue.

According to the study, the online casual gaming sub-segment accounted for 97 percent of total gamers last year and is expected to maintain this share through FY25. However, the segment is significantly under-indexed in terms of monetisation, with lower average revenue per user (ARPU) than comparable gaming markets such as Indonesia, Malaysia, and South Africa.

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Macroeconomic factors such as growing smartphone and internet penetration, a young population, and adoption of digital payments are all key growth drivers for the gaming industry. Overall, the sophistication of digital consumption has aided in the mainstreaming of online gaming.

Additionally, there are supply-side factors at play, such as an increase in the supply of world-class titles, games with localised content, games with new features such as multiplayer and social elements, and an overall increase in investor interest.

Additionally, the Covid-19-induced lockdowns in 2020 represented a tipping point for online casual gaming consumption, with most metrics such as MAUs, DAUs, average session times, and even paid user conversion rates seeing significant growth.

“With revenues expected to grow threefold between FY21 and FY25, we have seen a surge in interest from corporates and investors looking to capitalise on the incredible wave of opportunity that online casual gaming presents,” said Satya Easwaran, Partner and Head of Technology, Media, and Telecom at KPMG in India.

“With rapid growth over the last five years owing to the development of the country’s digital infrastructure and the availability of leading titles, India’s online gaming segment has developed into a serious business, with the Indian gaming market being overwhelmingly mobile-first,” he said.

Girish Menon, Partner and Head of Media and Entertainment at KPMG in India, stated that with cloud gaming on the horizon and the adoption of cutting-edge AI/ML-driven technologies, online casual gaming in India is serious business for both players and investors.

“We expect the online gaming segment to grow to be one of the largest segments of the M&E industry in the coming years, capturing a share of the Indian digital billion’s time and wallet,” he added.

source: ANI

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