India's mobile games market projected to hit $2.4bn by 2029
Key takeaways
- India's mobile gaming market to reach $2.4 billion by 2029
- Over 600 million active mobile gamers in India
- Mobile games generated $1.1 billion in revenue in 2022
- Real-money gaming sector was valued at $3.7 billion before the ban
India's mobile gaming market is expected to reach $2.4 billion by 2029, fueled by over 600 million active players and a growing digital payment infrastructure. This growth is detailed in the India State of Play report by MIXI Global Investments, authored by Naavik and backed by data from Sensor Tower and AppsFlyer. The report highlights India as the world's second-largest mobile gaming market by downloads, with an anticipated 7.95 billion annual installs by 2025.
In 2022, the mobile gaming market generated $1.1 billion, and it is forecasted to grow to $1.5 billion by 2026, reflecting a 14.6% year-over-year revenue increase. However, despite leading Asia in downloads, India ranks sixth in terms of in-app purchase (IAP) revenue, earning approximately $800 million annually. This discrepancy poses a significant challenge for the market, as monetization strategies continue to evolve.
The situation has been complicated by the Promotion and Regulation of Online Gaming Act, which was enacted on September 22, 2025, effectively banning all online real-money games across the country. Prior to this ban, the real-money gaming sector was valued at $3.7 billion, making up about 85% of total gaming revenue in India. The aftermath has led to workforce restructuring in RMG companies and a strategic shift toward IAP and ad-monetized gaming.
Despite these challenges, there is a positive outlook for the non-RMG gaming sector. Prime Minister Modi has acknowledged the sector's potential, and the Maharashtra state government has committed $390 million to support gaming studios and infrastructure. Furthermore, the Technology Vision 2035 initiative aims for $100 billion in value creation and $10 billion in annual exports by 2035. Game studios are now classified as Essential Services, with dedicated funding for the AVGC-XR sector, which includes animation, gaming, and extended reality.
Why it matters
The report identifies Shooter, Strategy, and Puzzle as the top-performing genres in India. Shooter titles dominate IAP revenue, with Garena's Free Fire Max and PUBG Mobile leading the charge. However, the puzzle genre faces challenges, as downloads and engagement have decreased significantly, highlighting a need for better resonance with a younger audience in a market still largely driven by young male players.
Original source
PocketGamer.biz
