Close to half of the internet users in India played online games in 2021. Around 433 million of the 846 million internet users play games in India. This means that around 35 per cent of the population became online gamers in 2021.
According to Inc42, the number of internet users in India is set to surpass one billion in 2023 while the number of online gaming users in India is also projected to grow from 481 million users in 2022 to 657 million users in 2025.
The online gaming market, which includes real money games, casual games and esports is growing at a rapid pace in India with more than 76 online gaming start-ups being funded. About $2.9 billion was raised from 2014 to Q1 2022. This growth is due to the increasing number of international game developers entering the Indian market, and local languages being included into games to get a larger presence.
The market size of the online gaming industry is around $79 billion in 2020, which is projected to grow at 18 per cent CAGR to surpass $182 billion in 2025, according to Inc42. The growth in the online gaming market is accelerated by the rise in digital infrastructure, cheap and fast internet connection throughout the country has boosted online gaming further in India.
Online games funding grew by 383 per cent in 2021 from $360 million in 2020 and breached one billion dollars to hit an all-time high of $1.7 billion in 2021. The number of deals too was the highest in 2021 with 33 deals in total.