Category Report

INDIAN GAMING INDUSTRY

2016-2017

The gaming industry is an important contributor to Indias GDP growth. Indian gaming industry was
estimated to be $543.08 million in 2016, which is actually 0.55% of the global gaming industry. The
industry is expected to touch $801 million by 2022, growing at a compound annual growth rate of
6.61%.

In the past, gaming has not been able to attain a strong foot hold in the country, primarily due to its
low social acceptance, as well as lack of access to personal computers and gaming consoles in the
country.

However, the gaming landscape has significantly evolved over the last decade.

Major demand drivers that are contributing to the industry include:

- rising inclination of Indian costumer towards gaming
- growing youth population base
- rising per capita expenditure esp. in urban areas
- increasing smartphone user base
- rising internet penetration across the country
- adoption of advanced gaming technologies.

Further, increasing focus of gaming companies towards augmented reality (AR) and Virtual Reality
(VR) games across the country is expected to boost the market over the next 5 years.

Additionally, various government initiatives are also boosting growth in the countrys gaming
industry e.g. IPC, Indecent Representation of Women (Prohibition) Act, Nagaland Prohibition of
Gambling and Promotion and Regulation of Online Games of Skill Bill, FDI Policy, etc.

Theres an estimated 70 million gamers spread across the mobile, console and PC (personal
computer) platforms, which has caught the attention of several international gaming peripheral
manufacturers and service providers. Owing to significant cost competitiveness, the game
developers are shifting their focus to India for outsourcing their key working components.
Moreover, with the emergence and growing adoption of 3G/4G network mobile services with an
increased production of games will further give a push to the industry which in turn will offer new
opportunities for developers, publishers and technology experts.

SUPPLY CHAIN IN GAMING

This includes
Screen, PC, Audio,
Power, Consoles,
etc.

INDUSTRY PILLARS AND THEIR OVERALL IMPACT

INDUSTRY CATEGORIZATION

On the basis of technology, the gaming industry is categorized into mobile gaming, console
gaming and computer gaming.
Mobile gaming accounts for half of total industry revenues.
With the growth and improvement of wireless connectivity, many console gamers have shifted
towards mobile gaming. Ease of playing games on mobile phones, and increasing penetration of
phones esp. smartphones, is fueling mobile gaming growth. Major players are SuperCell (25%),
Activision Blizard (13.4%) and Elex Tech. (5.7%).

Console gaming accounts for the 2nd largest share (35.5%).

The high procurement cost has harshly affected the segment over the last decade. However,
increasing investments in dedicated console games by ardent players along with evolving gaming
consumers in India is driving this segment. Urban areas are witnessing higher demand for
Playstation 4, XBoxOne, etc. esp. since console games offer access to multimedia content in
addition to games. Major Players are Sony (26.7%) Microsoft (12%) and Nintendo (5%)
Computer gaming segment accounted for 15.5% of Indias gaming market.
The core gamers from this segment normally do not want to make additional investments in console
gaming. This reason PLUS an increased popularity for online PC gaming driven by interest towards
eSports and other electronic games is expected to boost this segment in the coming years.
Major Players are Electronic Art (23.8%) Activation Blizard (21.5%) and Valve Corp. (8.1%)

On the basis of Game Type

the market is categorized into Strategy, Casual, Action, Sports, Simulation and others (adventure,
arcade, board, card, casino, educational, puzzle, etc.). The average playing time for gamers is
increasing rapidly, thanks to tech advancements.

Strategy Games accounts for 16.3% of the market. Clash of Clans (and Kings), Call of Duty, Clash
Royale, Counter Strike, Grand Theft Auto, Mobile Strike, etc. are some popular games played in the
country. Youth population rise PLUS growing awareness of strategy games, are boosting growth in
the segment.

Casual Games accounts for 14.8% of market. Candy Crush Saga, Angry Birds, Talking Tom, Hay
Day, etc. are some of the popular titles. The segment is expected to grow by 6.73% CAGR between
2017-22.

Action Games account for 13.7% of the market. Popular titles are Temple Run, Doodle Army, God
of War, Prince of Persia, etc. Increased downloads indicate a projected growth rate of 6.87% over
2017-22.

Sports (8.5%) and Simulation Games (6.3%) have lower popularity, and average time spent on
these games is also lower. However, gaining momentum of eSports due to improved telecom
infrastructure and internet speeds is expected to increase market share of Sports segment by
8.6% by 2022.

(The content of this Report has been primarily picked up from CIIs Emerging Trends in India
Gaming Industry)
MAJOR GAMING SHOWS / EVENTS IN INDIA

USEFUL LINKS FOR GAMING EVENTS

http://gamesexpo.in/

http://videogamefest.com/

http://www.gamingshow.in/

https://www.rog-masters.com/en/start

http://www.knowafest.com/college-fests/competitions/Gaming

http://www.gamingmeets.com/indian-gaming-events/