Khelo, India, Khelo!

31 May,2017

 

Republished from a KPMG-Google report on online gaming titled ‘Online Gaming in India: Reaching a new pinnacle’

 

The advent of India’s online gaming industry can be dated back to 2000s, when console and PC gaming brought several middle-income group Indians on digital gaming platforms. During mid 2000s, online gaming was largely in the form of social games. This adoption was facilitated primarily through global games by international developers. Indian development ecosystem acted primarily as service providers for international developers. Since then, India has been a volume based story enabled by rise in internet penetration and increase in smartphone user base.

 

Online gaming market realised impressive volumes with 120 million online gamer(s) and market value estimated at ~ 290 million USD in 2016. The key driver of market volume was proliferation of low cost smartphones amongst urban and rural population. The monetisation is realized through revenue streams like in-app purchase, pay per download, subscription service etc. by gamer(s) and in-app advertisement, incentive based advertisement etc. by ecosystem. Today, monetisation is dominated by advertisers and publishers.

 

However, challenges like limited local games development and monetisation of gamer(s) are still restraining the high potential. In recent years, local internet ecosystem has initiated the course correction by end to end local game development and adoption of digital payment solutions.

 

 

The online gaming consumers market, characterised by large volumes, is rising fast in terms usage and monetisation. The local development is characterised by highly skilled manpower and expertise.

 

In the future, India is expected to move towards value driving consumption and comprehensive local development. The industry is expected to gain momentum and reach a market value of 1 billion USD and ~310 million online gamer(s) by 2021. This ~28% CAGR growth will be driven by:

 

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