India seems to be lagging behind when it comes to video games. In 2016, global gaming industry clocked up to $100 billion in revenues, with India’s estimated share of $543 million.
When compared to other countries, India appears to have a modest impact on the overall industry growth. However, it is improving at an incredible speed.
The local video game market has become an important contributor to India’s GDP and government’s initiative to build world’s largest digitised economy.
In fact, it is expected to double and to become a $1 billion opportunity by 2021. In order to reach the scale, the market will have to increase at a compound annual growth rate of 17-20 per cent, according to KPMG.
Here, there are three key factors that will drive the growth: increasing smartphone penetration, the proliferation of game distribution platforms and rise of blockchain technology that allows for smart monetization for developers and gamers.
Powerful and Affordable Game Devices
Today, India is the second largest online user. According to CII and TechSci Research, the country’s market is expected to grow as youngsters will add 190 million to the online gamer base by 2021. As economic prospects improve, this will, in turn, boost demand for affordable smartphones and tablets with larger RAM and storage capacity.
The mass adoption of high-end game devices will contribute to the evolution of online consumption and let the country climb up the global leaderboard in terms of game downloads.
In fact, leading manufacturers such as HP, ASUS, Sony and service providers like Twitch have already reported an increase in local sales and viewership numbers.
Apart from it, India has already taken the lead by Google Play downloads with just 30 per cent smartphone penetration rate, as reported by App Annie and NASSCOM.
As the gaming space expands, so does the need for technological advancements in the game development and distribution process. This will push both developers and publishers towards creating compelling content and utilizing new types of digital distribution platforms based on the blockchain technology.