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Levelling up: State of India Interactive Media & Gaming Research FY’24

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Levelling up: State of India Interactive
Media & Gaming Research FY’24
November 2024
In collaboration with
®

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Gaming constitutes 30% of the broader new media market, and is its fastest growing segment
• India’s new media market touched $12.5 Bn in FY24 growing at a CAGR of 16%
• Gaming and Video/OTT are the largest segments, contributing over 60% of the market
• India is a key producer of global Animation/VFX services, with the industry valued at $1.6B in FY24
N E W M E D I A M A R K E T O V E R V I E W
3.8
12.5
3.9
3.1
1.6
Gaming Video/OTT Social Animation/VFX
0.1
Audio New Media
30%
So urc e: Lu mik ai A nal ysi s based on third par ty an alyti cs data prov iders , s ec ondary re searc h, Lum ikai pro pr ietary data, pr imary surv ey & ex pe rt I nterv iews; estimate s in cl ude subsc riptio n, IA Ps, an d ad rev en ues.
India’s new media market size in FY24 (in $ Bn)
CAGR = 20%
CAGR = 16%

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India’s gaming market exceeded expectations to record $3.8 Bn in FY24
G A M I N G M A R K E T O V E R V I E W
So urc e: Lumi kai A naly sis based o n th ird party anal ytic s data pro vi ders, se co ndary res earc h, Lumi kai pro pr ietary data, pr imary su rve y & e xpert Inte rvi ews; es ti mates in cl ude subsc riptio n, IA Ps, an d ad rev en ues.
India’s gaming market size by revenue in FY24 (in $ Bn)
• With sustained growth in in -app purchases and ad revenue, the gaming market is expected to cross $9.2 Bn by FY29, growing at a
20% 5 -year CAGR
• In -app purchase revenue continues to be the fastest growing segment with 41% year -on -year growth
• On account of RMG platforms absorbing users’ GST cost and a packed live sports season comprising of two world cups and an IPL ,
the sector added ~$400M to its topline
2.0 2.4
3.6
0.5
0.7
4.3
0.6
0.6
1.3
0.04
0.04
0.06
FY23 FY24 FY29E
Expected 5 -year CAGR
8%
15%
44%
8%
Category
Oth ers*
Ads
IAP
RMG
9.2
3.8
3.1
20%
23%

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Over 60% of India’s smartphone users play games India’s gaming segment added 23M new gamers in FY24
Average weekly time spent on gaming increased by 30%
Average Time Spent on Gaming per Us er per Week
(Ho urs )
F Y23
10
F Y24
13
Number of Dow nloads , F Y24 ( Bn)
India continues to be one of the world’s largest mobile download markets
The Indian gaming market continues to benefit from sustained engagement metrics
• The Indian gaming market added 23M new gamers to cross 590M gamers in FY24
• India is the world’s second largest market by mobile gaming downloads, 3.5x larger than US and Brazil
• Average weekly time spent on games increased by 30%, from 10 hours to 13 hours
E N G A G E M E N T
Paying
Users
Smartphone
Users
Gamers
Internet Users
FY24
% of Indian
population
936 Mn , 8% y -o-y growth
883 Mn , 8% y -o-y growth
591 Mn , 4% y -o-y growth
148 Mn , 6% y -o-y growth
62%
58%
40%
10%
So urc e: Lu mik ai A nal ysi s based on third par ty an alyti cs data prov iders , T RA I repor ts , s ec ondary re searc h, Lum ikai pro pr ietary data, primary su rve y & e xper t In te rvi ews Game r defi ned as a u ser wh o has pl ayed a vi deo game i n th e an alys is pe rio d of F Y24
FY23 FY24
568 591
+23 Mn
Number of Game rs (Mn)
29.3
15.2
4.4 4.4 3.4
China India Brazil US Indonesia
3.5x

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Gaming market size by genre ($ Bn)
So urc e: Lu mik ai A nal ysi s based on third par ty an alyti cs data prov iders , s ec ondary re searc h, Lum ikai pro pr ietary data, pr imary surv ey & ex pe rt I nterv iews *Lis t is not exh austiv e, re pr esen ts I AP growth fr om FY23 to FY24 ^Th is co ve rs the firs t 6 m onth s o f the new G ST r egime as th e an alys is pe rio d for th is repor t is FY24
Midcore games propelling IAP revenue growth in India
• Revenue from midcore games exceeded expectations clocking an astounding 53% year -on -year growth
• Casual and hypercasual games saw 10% annual growth in IAP revenue, while ad revenue remained stable despite global pullbacks
on ad -spends
• Despite growth in topline revenue, taxation challenges in RMG resulted in margin compression and adverse impact on profitabil ity
M O N E T I Z A T I O N
Yo Y IAP gr ow th o f key titles*
Mi dcore and core d riving IAP grow th
RMG uni t metrics affected i n new GS T regime^
Key considerations for future growth
o Re markable up tick in IAP revenue s resulted in 53 %
year -on -year growth for midcore games revenue
o Significant upticks in IAP revenue observed in popular
titles BGMI, FF Max, Clash of Clans , while greens hoots
were also see n in Roblox and EA FC Mobile
2.0 2.4
3.6
0.7
0.8
2.1
0.4
0.6
3.5
0.04
0.04
0.06
FY23 FY24 FY29E
Others
Midcore & Hardcore
Casual & Hypercasual
RMG
9.2
3.8
3.1
23%
20%
Expected 5 -year CAGR Category
8%
44%
23%
8%
B GMI
7X
Roy al Ma tch
6 X 2X
Rob lox
2X
EA FC Mob ile
30% 2X 25%
Reduction in
gross to net
revenue margin
Increase in payback
period on user
acquisition spends
of companies facing
financial difficulties, as
per industry bodies

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ARPPU increased 15% year -on -year to reach $22 in FY24
With 8 Mn new paying users added in FY24, total paying gamers stands at 148 Mn
Category -wise IAP ARPPUs for top grossing playstore categories*
So urc e: Lu mik ai A nal ysi s based on third par ty an alyti cs data prov iders , s ec ondary re searc h, Lum ikai pro pr ietary data, pr imary surv ey & ex pe rt I nterv iews *Ge nre ex planatio n (n on -ex hau stive ) – Strate gy : in cl udes 4X, MO BA, R PG; A c ti on : inc lu des Battle R oy ale, FP S; C asual : inc lu des m a tc h3, me rge, puzzl e; Spo rts: in cl udes cas ual and simu latio n -sty le sports gam es
RMG paying gamers also pay for
m idcore games
Fantasy sports paying gamers
also pay for m idcore games
64% 66%
IAP revenue driving monetization growth in India’s gaming market
• Annual ARPPU increased to $22 in FY24, a 15% increase from FY23
• With 25% of users making in -game payments, the number of paying gamers increased to 148 Mn
• Over 60% of RMG paying gamers now also pay for midcore games, suggesting a high degree of overlap in gamer personas and
growing sophistication of gamers
M O N E T I Z A T I O N
FY20 FY21 FY22 FY23 FY24
$8
$16
$20 $19
$22
+15% Annual ARP PU ($)
FY23 FY24
140 148
+8 Mn
Growing user sophistication with strong overlap between RMG and midcore users
Number of Pay ing Gamers ( Mn)
Strategy
Action
Casual
Sports
$28
$18
$14
$13
Annual ARP PU ($)
INR 29 per IAP
p referred entry p ri ce
p oint for first ti me payers

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Insights from Pan India Survey (1/4)
• 44% of gamers are women, up from 41% last year, playing casual mobile games
• 66% of gamers come from non -metro cities
• 43% of gamers are first -time earners in the age -group of 18 -30, exhibiting high propensity to pay for gaming and interactive
entertainment
Demographic breakdown Gamer preferences
Gender -ratio of gamers
56%
Male players
44%
Female players
43% 29% 28%
45+
Distribution of gamers Top 5 game discovery channels
1 2 3 4 Friend s and family reco mmendat ions Store reco mmendat ions Direct s ea rch on app s tores 5 In-ap p ads Game reviews
Top 3 motivations to play Top 3 reasons to stop playing
Cre ativ ity and se lf -e xpre ssion Relax ation and de stre ssing Socializin g Game f ell out of tren d T oo man y ads
3
Casua l
1
Midco re
4
Hypercasual
2
RMG
Top games that gamers pay for
1 2 3 1 2 3
No te : Su rve y r esul ts based on sample siz e o f 2, 269 I ndian smartpho ne use rs o ve r a 1 2 -mo nth pe rio d from Se pt 202 3 to Se pt 202 4.
Top games played
4
Hyperca sual
Ludo Ki ng C andy C ru sh C oi n Master
BGM I C lash o f C lans
MP L Dre am11
1
Casua l
2
Midco re
3
RMG
FF Max
R umm y
P R I M A R Y S U R V E Y
Life sty le chan ge s
Smartphone types
34%
66%
Metr o No n-Metro
$800 5%
% of users Price
Data usage
3GB 10%
30-45 18-30
H ill C lim b R aci ng Fl appy Bir d Pi ano Ti les
C lash o f C lans
H ill C lim b R aci ng Fl appy Bir d Pi ano Ti les
Dre am11 R umm y MP L
Ludo Ki ng C andy C ru sh C oi n Master
BGM I FF Max

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Insights from Pan India Survey (2/4)
• 20% increase in time spent on casual games in FY’24
• 25% of gamers said they have spent money in games this year, consistent with FY23
• 83% of users use UPI or digital wallets to make in -game payments
• Top payment motivators of paying gamers include unlocking new content and upgrading in -game items
Engagement behaviour Payment behaviour
51%
18%
18%
Earlier I used to play casual games, n ow I play
all kind of games
Earlier I used to play games f or free, now I
also spend money in g ames
Earlier I used to play same game but now I
experiment with new gaming segment and
genres
Change in time spent playing
games over last 12 months
2.3 3.6
2.6 3
2024
2023
Hypercasual Casual Midco re
Hardcor e RMG
Avg weekly hours spent on gaming Top kinds of payment made Preferred modes of
payment
67%
In a pp –
purchas es
57%
Subscription
58%
Real Money
Gaming
22%
Virtual gifting
and tipping
70%
UPI
13%
Wallet
12%
Credit Car d
4%
Debit Car d
1%
Crypto currency
25% of g amers have
sp ent money on games/
g aming p lat form
% of paying users
3.8
3.8
3.7
3.9
3.7
4.7
P R I M A R Y S U R V E Y
36%
Lo ot bo xes and other bundles
66%
In-game cur rency and coins
61%
Performance -based upgrades
54%
Cosmetic and visual upgr ades
24%
Seaso n -pass content
Types of in -app purchases
No te : Su rve y r esul ts based on sample siz e o f 2, 269 I ndian smartpho ne use rs o ve r a 1 2 -mo nth pe rio d from Se pt 202 3 to Se pt 202 4.
U nl ock new content
Potent ial to make money
U pg ra de in -g ame items
Top payment motivators

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Insights from Pan India Survey (3/4)
• Users across India pay for games, with highest propensity to pay exhibited in West India
• Casual games are universally enjoyed, with midcore games being a close second preference across India
• Higher interest in paying for RMG in North and South India, with highest propensity to pay for midcore and casual games exhib ite d
across other parts
P R I M A R Y S U R V E Y
No te : Su rve y r esul ts based on sample siz e o f 2, 269 I ndian smartpho ne use rs o ve r a 1 2 -mo nth pe rio d from Se pt 202 3 to Se pt 202 4. Wes t: Mumbai , A uran gabad, R ajk ot; Eas t: Ko lkata, Pu ri, Patn a, G uwahati; No rth: De lhi NC R, Ludh iana, U daipur; S ou th : C hen nai, C oc hi n, Madur ai, Bengalu ru
Regional trends in user behavior, engagement, and monetization
20%
20%
23%
31%
Sout h
North
East
West
North West East South
+50%
Time spent gaming by region
% of paying users
Paying preference by genre
Playing preference by genre
1
Casua l
2
Midco re
4
Hypercasual
3
RMG
West East
1
Casual
2
Midco re
3
RMG
4
Hypercasual
North South
2
RMG
3
Midco re
4
Hypercasual
1
Casual
2
Midco re
4
Hypercasual
3
RMG
1
Casua l
3
Casual
1
Midco re
4
Hypercasual
2
RMG
West East
1
Casua l
2
Midco re
3
RMG
4
Hypercasual
North South
3
Casua l
2
Midco re
4
Hypercasual
1
RMG
3
Casual
2
Midco re
4
Hyperca sual
1
RMG
1x
1.1x
1.3x
1.5x

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New media consumption preferences in terms of % of users Top preferred apps
Weekly time spent on new media platforms (in hours) Top kinds of payments made on new media platforms
• Users spend 25% more time on interactive social media/streaming platforms compared to passive social platforms
• 47% of users are ad -tolerant to avoid paying for subscriptions with preference for micro -transaction based in -app purchases
• Time spent on gaming is ~2x compared to time spent on social platforms
P R I M A R Y S U R V E Y
Insights from Pan India Survey (4/4)
In -app purchases
Subscription purchase
Pay -per -us e purchase
1
2
3
No te : Su rve y r esul ts based on sample siz e o f 2, 269 I ndian smartpho ne use rs o ve r a 1 2 -mo nth pe rio d from Se pt 202 3 to Se pt 202 4.
47%
of resp ond ents
sai d t hey do
no t min d ads
on new med ia
p latforms
13.0
6.6
6.3
6.0
5.3
4.8
4.1
3.4
Gaming
Social – Interactive
Dating
Social – Passive
Audio – OTT
Music
Podcasts
Video OTT
Social – Passive
Gaming
Music
Audio OTT
Social – Interactive
Podcasts
Dating
75%
65%
43%
21%
21%
15%
10%
Video OTT 40% Facebook Ins tagr am
Telegram Shar echat Snapchat
Elo Elo Whatsapp
Yo uTube
Pock etFM
Moj Prime Video
Sony Liv

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T R E N D S P O T T I N G
Government amplifies support for gaming and AVGC as key sectors for growth
• PM Modi recognizes gaming as a sunrise sector in Independence Day speech, urging more “Made in India” original IP
• Frameworks for distinct legislations and taxations for specific sub -verticals of gaming and interactive media are emerging
• Gaming is mainstream with acceptance across investors, government, policy makers, academia, and media
Legislation updates Government initiatives and AVGC policy changes
The Governmen t of In dia is organizin g
the WA VES S ummi t in Feb 2025 to
promote India’s media and
entertainment in dustry and in crease its
internation al reach
National AVGC Centre Of Excellence to
be set up in Mumbai in collaboration with
IIT Bombay
The Prime Minister met with leading Indian gamers to deliberate the need
for:
❑ Minimal governm ent inte rvention
❑ Tailored esports regulations
❑ Clearer distinction from gam bling
❑ Importance of parental support
❑ Societal recognition
❑ Games based on I ndian them es
St ate Level AVGC XR policies have
been ann ounced by Kerala & Karnatak a,
with TN on the way
Policies in clude propos als for f undin g,
tax rebates , and centers of excellence
Total $3.0 B n (20 20 -24)
Total $4.8 B n (20 20 -24)
Inte ractiv e media and gamingGaming
Funding L andscape
Online R eal Money Game clearly defined as an
online game where a user mak es a deposit with the
expectation of earning winnings
On line G am e clearl y d ef ined sepa ratel y from
RMG , as a g ame that i s o ffered ov er the i nternet
and a ccessi bl e t hro ugh a co mputer res ource
SRB fr am ewo r k i n abe yan ce to enf orce r es po nsi bl e
g ami ng , req uiri ng op era to rs t o b e certi fi ed b y t he
SRB s
28% G ST levied on dep osi ts eff ecti v e 1 st Oct ob er’23
18% G ST levied on in -ap p p urcha se transa ctio ns
wi thin ap p stores, s ep ara ting ta x treat ment for F2P
and p remium g ames from R MG
Ke y Inves to rs *
Es por ts b rought under the Mi nist ry of Youth
Af fai rs and S p orts, id ent ifi ed as an o ffici al sp ort in
Ind i a
Real -money Games
F2P/Premium Games
Esports
*Lis t is not exh austiv eDefi nitio ns as per IT (In te rmedi ary Guide lin es an d Digital Me di a C ode) Ru les, 2 021

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Thank you!
For further queries, please reach out at hello@lumikai.com

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Important Disclaimer:
This material is prepared by Lumik ai Inve stment Advisors, Lumikai Inve stment Advisors II, Lumikai Interactive LLP, and Lumikai Inte ractive II LLP (together refe rred to
as “Lum ikai”) .
This material (including any information contained in it) is inte nded to provide general information on a particular subject(s) and is not an exhaustive treatment of
such subject(s) or a substitute to obtaining profes sional services or advice . This material may contain information sourced from publicly available information or
other third -party sources . Lumikai does not independently verify any such sources and is not responsible for any loss whatsoever caused due to reliance placed on
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means of this material, rendering any kind of inves tment, legal or other profes sional advice or services . The material is not an offer, or a solicitation of an offer, to
buy or sell any security . The data produced in the material is based on the past performance of the industry and companies identifie d the rein and the same is not
indicative of future performance, results or outcomes and no repre sentation or warranty, expre ss or implie d, is made regarding future performance results or
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©2024 Lum ikai®

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M ethodology
A P P E N D I X
1. Research Design
This report consolidate s res earch undertaken over a 6 month time period
(May 2024 -October 2024) using a m ixed -methods approach, com bining
both qualitative and quantitative data collection and analysis technique s
to provide a comprehensive analysis of the new me dia and gaming
industry in India. The re port was prepared by Lumikai, in collaboration
with Google and a leading consulting firm.
2. Data Collection
a. Primary Data:
• Surveys: Conducted Online Panel and Face to Face – CAPI survey of
2, 269 smartp hone users across 16 cities in India, dis tributed evenly
across ge og raphical reg ions and tiers, in collaboration with a leading
multinational market research firm. The survey included close d -ended
questions de signed to q uantify user habits, preferences , and
spe nding behaviors.
• Industry Inputs: Data points and inputs on trends collected from
leading industry stake holders of the new media and gaming
ecosystem in India.
b. Secondary Data:
• Market Reports: Data and trends collecte d from existing p ublished
reports by Indian and International publications, media, and
consulting firms.
• Company Reports: Re vie w of annual reports, financial statements ,
and press releases from leading new media and gaming companies
operating in Ind ia.
• Third Party Data: Data collected from leading third -party app data
platforms.
• Lumikai Propr ietary Data : Analys is of proprietary data collecte d and
owned by Lumikai.
3. Data Analysis
• Descriptive Statistics: Us ed to summ arize the basic features of
both p rim ary and secondary data, providing sim ple sum maries
including m ean, median, and mode of the samples.
• Inferential Statistics: Thes e techniques we re em ploye d to
identify sig nificant relationships between various data -points , and
us ed to gene rate models for m arket estim ates and forecasts.
• Regression Anal ysis: Utilize d to analyze and predict patterns of
various ke y data p oints, and employed to generate correlations
amongst variables and resulting in fore casts for datapoints.
• Thematic Analysis: Employed to identify, analyze, and report
patterns (themes ) within data collected from surveys.
• Integratio n o f Findings: Integration of quantitative and
qualitative findings to provide a comprehe nsive understanding of
the gaming and new m edia lands cape.
4. Validation and Triangulation
• Cross -Verification: During the data collection phase, datapoints
collected we re thoroughly cross -verified across multiple re puted
sources including data platforms , market reports, and
conversations with leading s takeholde rs .
• Triangulatio n: Estimates and forecasts arrived at through the data
analysis phase were vetted and validated through conversations
with leading indus try stakeholders, with ke y feedback being used
to fine -tune our models to arrive at the most accurate e stimates .

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Glossary
A P P E N D I X
ARPPU Avera ge Revenue Per Pa ying User
ATS Avera ge Time Sp ent
AVGC Animat ion, Visual Effects, Gami ng & Co mi cs
BGMI B attleg ro unds Mobi le Ind ia
BN, MN B ill ion, Mi lli on
CAGR Compound Annual Growth Ra te
CoE Center of Ex cel lence
eCPM Effecti ve Cost Per Mil le
FF F ree F ire
FY F inancia l Year
GB Gi gab yt e
GOI Government Of India
GST Goods & Services Tax
IAP In-app Purchase
IP Intellectual Property
MKT Market
RMG Real Money Games (includes Fantasy)
SRB Self Regulated Body
TDS Tax Deducted at Source
UGC University Grants Commission
UPI Unified Payments Interface
VC Venture Capital