India Esports Market Outlook to 2028

India Esports Market Overview

• The Indian esports market is valued at USD 107 million in 2023. The market is expected to expand during the period 2023-2028. Significant drivers include technological advancements, increased availability of high-speed internet, the rise of gaming influencers, and the growth of mobile gaming.

• The Indian esports market is fragmented with several key players in the Indian esports market including Nodwin Gaming, Nazara Technologies, Tencent Games, DreamHack, and Mobile Premier League.

• In 2023, Nodwin Gaming announced a significant partnership with Krafton Inc., the maker of PUBG, to launch a series of major esports tournaments in India. This collaboration is expected to elevate the competitive gaming scene in the country, attracting more players and viewership.

India Esports Current Market Analysis

• With over 900 million internet users in 2024 and the widespread availability of affordable smartphones, access to online gaming has surged, driving the growth of the esports market.

• The Southern region of India, particularly Bangalore and Hyderabad, dominates the esports market. These cities are tech hubs with a large population of tech-savvy individuals who are early adopters of gaming. Availability of robust infrastructure and internet connectivity supports the growth of esports activities.

• Among mobile games, PUBG Mobile has been particularly successful, capturing a large audience with its engaging gameplay and frequent updates. Despite a temporary ban, its rebranded version, Battlegrounds Mobile India, continues to thrive.

India Esports Market Segmentation

The India Esports Market can be segmented based on several factors:

By Platform: The India Esports market is segmented by platform into Mobile, PC and Console. The mobile platform's dominance in the Indian esports market in 2023, is primarily due to its accessibility and affordability. With the proliferation of budget smartphones and affordable data plans, mobile gaming has become the primary mode of entertainment for a large segment of the population.

By Game Genre: The India Esports market is segmented by Game genre into Battle Royale, Multiplayer Online Battle Arena and First Person Shooter. In 2023, Sports Battle Royale games have captured the Indian esports market's attention due to their engaging, competitive gameplay and frequent updates that keep players invested. Games like PUBG Mobile and Free Fire offer thrilling experiences with a blend of strategy, survival, and combat.

By Revenue Source: The India Esports market is segmented by revenue source into sponsorship and advertising, tournament winnings, streaming and content creation and merchandise sales. In 2023, Sponsorship and advertising lead as the primary revenue sources in the Indian esports market. Brands are increasingly recognizing the value of the esports audience, which is young, tech-savvy, and highly engaged.

India Esports Market Competitive Landscape

• Nodwin Gaming and Riot Games Partnership (2023): Nodwin Gaming partnered with Riot Games to host the Valorant Conquerors Championship in 2023. This tournament aims to elevate the competitive gaming scene in South Asia, with the winners getting a direct slot in the Valorant Champions Tour, showcasing the growing collaboration between global game developers and Indian esports organizers.

• FanClash Expansion into Southeast Asia (2023): FanClash announced its expansion into Southeast Asia in 2023, introducing its esports fantasy platform to new markets. This strategic move aims to tap into the burgeoning esports communities in countries like Indonesia and the Philippines, enhancing FanClash's user base and international presence.

• Nazara Technologies Financials: For the first half of FY24, Nazara reported a 13% year-on-year growth in revenue, reaching ₹551.7 crore. Profit after tax increased by 42% to ₹45 crore, with an improvement in the EBITDA margin to 11.1%.

India Esports Industry Analysis

India Esports Market Growth Drivers

• Increasing Internet Penetration and Smartphone Adoption: As of 2024, India has over 900 million internet users, supported by government initiatives such as the BharatNet project, which aims to provide high-speed internet access to rural areas. The TRAI reports that the average mobile data usage per user per month has increased to 14 GB in 2024, reflecting the growing engagement with online gaming and streaming services.

• Substantial Investments and Sponsorships: The Indian esports market has seen a significant influx of investments and sponsorships, which are crucial for its growth. In 2023, the esports sector attracted over USD 100 million in investments from venture capitalists and corporate sponsors.

• Government Support and Policy Initiatives: Government support and policy initiatives have been instrumental in increasing the growth of the esports market in India. By End of 2024, initiatives under this policy have enabled the installation of over 500,000 km of fiber optic cables, enhancing internet access and reliability, crucial for online gaming.

India Esports Market Challenges

• Monetization Issues and Revenue Generation: Despite the growing popularity of esports, monetizing content remains a significant challenge. According to a report by the Internet and Mobile Association of India (IAMAI), the monetization of esports content is hampered by the limited revenue streams from advertising, sponsorships, and merchandise sales.

• Infrastructure Limitations and Digital Divide: Inadequate infrastructure in certain regions continues to hamper the growth of esports in India. The Ministry of Communications reported that only about 35% of rural areas have access to reliable high-speed internet, essential for competitive online gaming.

• Cybersecurity Concerns and Integrity Issues: Cybersecurity is a critical challenge in the esports industry. The increasing number of online tournaments and the use of digital platforms for streaming and transactions expose players and organizers to cyber threats. According to a 2023 report by the Indian Computer Emergency Response Team (CERT-In), the number of cybersecurity incidents related to online gaming increased by 25% compared to the previous year.

India Esports Market Government Initiatives

• Digital India Campaign (2015): Launched in 2015, the Digital India campaign aims to enhance digital infrastructure and improve internet connectivity across the country. As of June 2024, the campaign has achieved significant milestones, including the installation of over 500,000 km of fibre optic cables and the establishment of high-speed internet connections in more than 250,000 villages, according to the Ministry of Electronics and Information Technology.
• Skill India Mission (2015): The Skill India Mission, launched in 2015, focuses on developing skills among the youth, including those relevant to the esports and gaming industry. As of 2024, over 5 million youths have received training under this mission, contributing to a skilled workforce that supports the growth of the esports industry.
• Recognition of Esports as a Sport (2022): In 2022, the Indian government officially recognized esports as a legitimate sport, which has had a profound impact on its development. This recognition has led to increased funding, infrastructure development, and support from educational institutions. The inclusion of esports in the National Games and other multi-sport events has further legitimized the sector, encouraging more participation and viewership.

India Esports Market Future Outlook

The Indian esports market is projected to grow significantly during the time period 2018-2023. This growth will be driven by increased participation, viewership, and investment in the sector.

Future Market Trends

• Enhanced Technological Infrastructure: The rollout of 5G technology, expected to cover 70% of the population by 2025, will enhance online gaming experiences with lower latency and faster speeds, supporting more complex and immersive esports activities.
• Expansion of Esports Tournaments and Leagues: The expansion of professional esports tournaments and leagues will be a key trend. Major esports events, such as the Indian Gaming League (IGL) and the Electronic Sports League (ESL), will gain prominence, attracting both local and international teams.
• Rise of Esports Influencers and Streamers: The rise of esports influencers and streamers will play a significant role in shaping the market. Platforms like YouTube, Twitch, and Facebook Gaming will continue to grow in popularity, providing gamers with opportunities to build large followings and monetize their content.