The digital gaming sector is predicted to take a leap to a whopping $2.8 billion by 2022. Its annual growth rate is anticipated to be 40%, which stood at $1.1 billion in 2019, states the Deloitte India report, Tuesday.
With the unparalleled dependability on smart devices and the internet, the country is spending a large portion of its luxury income on the online gaming sector. Resultantly, the sector is expected to witness a rise in its entertainment industry share by 4-5%.
The study sheds light on the massive growth of this sector due to covid-19, which led to an increase of time spent on gaming apps by 21%. With no alternative entertainment options, the number of users plunged to 300 million during the national lockdown.
The introduction of vaccines is sure to normalize the economic activities soon, causing a considerable fall in online gaming. However, the industry would have already reached its highest.
India makes for 13% of the global gaming sessions, landing among the top 5 mobile gaming markets internationally, with a further anticipated addition of 40 million online gamers within 2 years.
The CEO and co-founder of Poker Sports League, Pranav Bagai, further supports the Deloitte report and highlights the prediction of a gaming sector revolution. He says that digital gaming will offer a great addition to revenue and job opportunities while curbing illegal activities if governed well.
The report further states the transition of this industry from a download and advertisement dependent model to one of user engagement. A massive rise can be noticed in digital coins and virtual revenue.
Online gaming platforms of the country have received exponential contributions from several renowned firms. These include Pegasus Tech Ventures, Jetline, Triveni Engineering & Industries, Reliance Jio, and others, in games like Mobile Premier League, JetSynthesys, and Krikey. Resultantly, these platforms have raised over $450 million within the last six years.
Real money gaming (RMG) seen in games like rummy and poker is predicted to witness an annual growth of 40%. These will be recognized as games of skill, and thus, termed as legal.
The report also highlights the expected growth in E-sports revenue, as more gamers have drifted towards watching e-sport and fantasy sports tournaments. The latter already observed growth of ₹16,500 crores in the pre-pandemic years 2017-20.
The CEO of the All India Gaming Federation (AIGF), Roland Landers, points the need for regulation in this sector. Till now, the digital gaming industry falls in the group of self-regulated, while being controlled by charters and audits.
“…it has become important that the industry’s self-regulation practices should be recognized by the relevant ministries and they should seek to devise a regulatory framework in consultation with the industry stakeholders,” states the AIGF chief executive.
He further adds that an appropriate set of regulations can bag the online gaming sector more investments, and thus, greater technological advancements. Consequently, the industry can also contribute to generating employment in the ancillary sectors of the country, he said.