New Delhi, October 29: India’s gaming market is expected to leap from $3.7 billion in FY24 to an estimated $ 9.8 billion by FY29, with a robust CAGR of approximately 20 per cent, according to a report on Tuesday.

The report, by 1Lattice, a tech-enabled market intelligence firm, highlights mid-core and hardcore gaming segments as key growth drivers. It is anticipated to grow at an impressive CAGR of 47 per cent over the next five years, capturing 42 per cent of the market share by FY29. India’s Online Gaming Sector Likely To Reach USD 60 Billion by 2034 Amid Challenges Surrounding Regulation and Taxation.

"As India establishes its presence in the global gaming landscape, there are significant opportunities for growth. The evolving dynamics of the sector present a promising outlook for continued development,” said Praneet Singhal, Director of Technology and Internet at 1Lattice.

“We believe there is potential for the industry to expand further and encourage stakeholders to consider how they can engage with and benefit from this growing market,” Singhal added. The report also identified key growth drivers which include rising smartphone penetration, increased internet accessibility, and a predominantly young, tech-savvy population.

India currently boasts 950 million active internet users, over 820 million smartphone users, and around 560 million gamers, creating a vast consumer base. Government initiatives, like the National Centre of Excellence (NCoE) in Mumbai, aim to bolster this sector by fostering innovation and skill development in immersive technologies.

Institutional initiatives, like the AVGC Task Force and the recognition of Esports as an official sports category, underline the government’s commitment to gaming. This support and investments from firms like Nazara Technologies are transforming the industry’s value chain, the report said. Netflix Shuts Down Its AAA Gaming Studio ‘Team Blue’; Check Details.

As India’s gaming industry rapidly matures, a clear path for innovation, investment, and strategic collaboration is emerging. The sector is poised for sustained growth with government backing, increased smartphone usage, and strong community engagement. The report encourages stakeholders to seize this opportunity to drive value creation and position themselves within a transformative market on the cusp of global impact.

(The above story first appeared on LatestLY on Oct 29, 2024 07:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).