India's online gaming sector projected to reach $4.3 billion by FY2030: Report

Esports is projected to grow at 26% CAGR to reach $132 million by FY30, from $38 million in FY25

India’s digital gaming sector is projected to more than double to $4.3 billion by FY2030 from $1.9 billion in FY2025, according to a joint report by US-based gaming and interactive media venture capital firm Bitkraft Ventures and consulting firm Redseer Strategy Consultants.

This growth projection comes despite recent regulatory action that banned real-money games in the country. Before the ban, real-money gaming accounted for the majority of the industry’s revenue.

Gaming and interactive media are emerging as the two key growth engines of India's $9.3 billion digital media and entertainment market, fueled by the country's rapidly growing youth user base, nano-transactions, high smartphone engagement, and a shift in consumer behavior toward interactive and personalized content.

Together, the segments are expected to triple in size, reaching $7.8 billion by FY30 from $2.4 billion in FY25, the report stated.

"India represents perhaps the most compelling greenfield opportunity globally. The confluence of a digitally native youth demographic, established mobile infrastructure, and massive scale is creating what we believe to be a hyper-growth environment. In our view, this is an inflection point, positioning India as a true global powerhouse for interactive entertainment," said Jens Hilgers, Founding General Partner, Bitkraft Ventures.

Read: Bitkraft Ventures to step up India investments after Centre's new online gaming law

Social features, regional content, and artificial intelligence (AI)-led game development are expected to shape the next phase of the gaming industry’s evolution, according to the report.

In-app purchases (IAPs) are projected to overtake advertising as the primary mode of monetisation by FY30, accounting for 66 percent of the sector’s revenue. In 2025, IAPs are estimated to contribute 44 percent, while advertising is expected to make up the remaining 56 percent.

This shift comes as India’s gaming community matures and users show a growing willingness to spend on more complex games. The average revenue per paying user is estimated to reach $27 in 2025 from $3 in 2020, the report stated.

The growth is driven by increased popularity of battle royale titles such as Krafton's Battlegrounds Mobile India (BGMI), and Garena's Free Fire Max, among others. The battle royale genre alone accounts for 47 percent of the market in 2025, the report said.

"It’s exciting to see India’s gaming sector entering a phase of durable growth, with local developers creating innovative and monetisable experiences that are beginning to resonate globally," said Anuj Tandon, Partner, India and UAE at Bitkraft Ventures.

Midcore and hardcore segment is expected to overtake casual games by FY30, accounting for 54 percent of the market from 44 percent in 2025.

Hybrid Casual, an emerging game format that blends casual gameplay mechanics with mid-core level progression and richer meta systems, is becoming a key segment. Titles such as Gardenscapes, Pizza Ready, and Archero belong to this category that is projected to represent 13 percent of the market by FY30, the report stated.

It added that more than 500 gaming focused startups have been launched in the past five years.

"We’re witnessing strong momentum across casual and hybrid-core titles, fueled by rising player engagement, new IP creation, and increasingly accessible payment ecosystems. Together, these factors are helping define the next chapter of India’s gaming and interactive media industry,” Tandon said.

The rising maturity of gamers in India is also expected to drive growth in the country’s esports sector. The segment is projected to grow at a compound annual growth rate (CAGR) of 26 percent to reach $132 million by FY30, up from $38 million in FY25, supported by sponsorship-led revenues and a surge in campus events.

As engagement deepens, revenues from advertising, media rights, ticket sales, and merchandise are also expected to increase, the report noted.

Micro dramas, short serialised dramas of one to two minutes designed for mobile viewing, which are rapidly gaining popularity in India, are projected to reach $1.1 billion by FY30.

The surge has spurred the launch of more than a dozen apps from startups such as Kuku, Pocket Entertainment, ShareChat, Dashverse, and Eloelo aiming to capitalise on the trend in recent months, Moneycontrol reported.

Gaming platforms Zupee and WinZO have also forayed into the micro drama segment in recent months following the government's blanket ban on real-money games.

The audio streaming segment is also to quadruple from $72 million in FY25 to $300 million in FY30, driven by high user engagement and UPI AutoPay payment model with players such as Pocket FM and Kuku FM leading the market, the report stated.

These content platforms are estimated to double their share of India’s interactive media market from 18 percent in FY25 to 36 percent in FY30, as the market itself expands from $440 million to $3.2 billion over the same period.

Astro and devotional tech is projected to grow from $165 million to $1.3 billion by FY30, led by one-on-one consultations. AI companions represent the next frontier with Indian startups building localised solutions for companionship and tutoring.

Social discovery and short form video platforms, presently a $202 million market, are expected to triple by FY30 by monetising the ‘Bharat’ audience (Tier 2 and Tier 3 audience) through virtual tipping and private one-to-one calling, the report stated.