Online Gaming in India- AIGDF predicts $4.5 billion market by 2025

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The Indian gaming industry is on track for significant expansion, with its market value projected to reach $4.5 billion by 2025. A new survey by the All India Game Developers Forum (AIGDF) highlights rapid industry growth, increasing investments, and emerging job opportunities. The sector’s employment potential is expected to rise to 250,000 jobs, reflecting its growing influence in India’s digital economy.

According to a report by Storyboard18, the survey underscores a substantial $2.78 billion investment in India’s gaming sector from FY20 to FY24 YTD. The report highlights the industry’s rapid transformation, driven by emerging technologies and an expanding talent pool beyond metro cities.

The global video gaming market, valued at $199.74 billion in 2022, is projected to grow to $307.19 billion by 2029, at a 6.3% CAGR. India is becoming a key contributor, with its gaming industry expected to reach $3.9 billion by 2025. The sector’s growth is fueled by increased internet penetration, affordable smartphones, and rising interest in gaming across diverse demographics.

The survey also notes that game development is expanding beyond metro hubs, with Tier-2 cities like Ahmedabad, Kochi, Surat, and Rajkot emerging as key locations. These cities offer cost-efficient operations and a growing talent base, making them attractive destinations for developers. Additionally, AI, blockchain, and immersive gaming technologies are being integrated to enhance competitiveness in global markets.

Despite its rapid expansion, India’s gaming industry faces significant challenges:

• Funding Constraints: Developers emphasize the need for venture capital and government-backed financial support to scale operations.
• Regulatory Uncertainty: Clearer policies on intellectual property rights, data protection, and monetization are necessary for sustained growth.
• Skill Shortages: A lack of specialized talent, especially in backend development and game engineering, poses a challenge to industry expansion.

Roland Landers, AIGDF Spokesperson, commented on the industry’s trajectory, stating, “India’s game development sector is at a crucial juncture. The survey reflects the strong creative ambition of our studios and their readiness to serve not just India, but the global gaming community. To realize the vision of ‘Make in India for the World’ and emerge as a global gaming powerhouse, we must now invest in building the right ecosystem — with targeted funding, streamlined policies, and dedicated skilling programs to nurture specialized talent. The foundation has been laid, and with the right support, India can deliver globally successful and iconic gaming content.”

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