Things are different than they once used to be. Social media was all the hype back in the day but now it seems like it’s taken a step back and gaming is the new trendy thing out there for Gen Z. And that applies especially to mobile gaming in India. There’s a report claiming that more than 300 million people play mobile games in India and that the gaming market has been blossoming with a rise of a compound annual growth rate (CAGR) of 38% in 2019-2020 and 37% in the previous fiscal year.
India is currently home to a $1.8-billion gaming market and even though it might seem tiny when you compare it to the worldwide increase, it’s still flourishing at a fast pace, especially when it comes to mobile-first games, as reported by the Boston Consulting Group and Sequoia on India’s mobile gaming division. According to the report’s findings, it’s safe to conclude that gaming has been more popular than social media by far in the last couple of years. To put that in reference, India’s gaming market grew around 37% or 38%, whereas the social media market rose by merely 11% in the years 2019-2020 and by 26% in the previous fiscal year.
The value of the mobile gaming market is set to be around $1.5 billion, or around 86% of the total gaming market, as declared by the report. Furthermore, mobile gaming makes up 59% of the gaming market in China and merely 28% in the United States. It’s anticipated that profits from mobile gaming within India are going to rise to at least $5 billion by the year 2025, the report claimed.
Moreover, when it comes to funding, India’s gaming start-ups gathered $549 billion during the first quarter of the previous year 2021, which is more than the $412 billion that was gathered in the entire year of 2020. To put that into perspective, gaming start-ups collected merely $34 million back in 2016.
India’s gaming market indeed continues to be minuscule when looking at the grand picture. After all, it amounts to only 1% of the worldwide market. The United States gaming market is valued at more than $40 billion, which means 23% of the worldwide market, whereas China’s is valued at more than $45 billion and that amounts to 26% of the worldwide market. It is quite normal that larger markets present rather limited increase rates, like China’s gaming market getting to a CAGR of 8% from 2017 to 2020 or the United States rising 10% CAGR during this timespan.
Even though mobile gaming already includes 86% of India’s gaming market, there continue to be possibilities for improvement, according to the report. Back in 2020, merely 46% of Indians had an Internet connection. In China that was 60% and in the United States that was 89%. Additionally, merely 22% of the people had played at least one mobile game as of 2020. In China, the number was 45%, and in the United States, that was a whopping 52%.
One of the most vital takeaways from the report was that India’s mobile gamers invested much less than the Chinese and American citizens. The regular mobile gamer puts only $3-10 towards games in the entire year. On the other hand, the regular mobile gamer in China will blow around $57-66 for games for the year and in the US mobile gamers can spend up to $73-77 for the whole year.
Do you spend money on mobile games or are you more of a social media fan? Let us know in the comments.