How COVID-19 acted as the catalyst for the online gaming industry

The COVID-19 pandemic has hit the Indian economy at a vulnerable time, severely affecting many industries around the world. However, the online gaming industry emerged as the silver lining in the coronavirus cloud. The number of people playing games online is now more than ever. In India, the gaming industry was already witnessing an upward growth, but the pandemic has pushed it even further.

Overview of the Indian online gaming industry in numbers

With several factors driving market growth, the India online gaming industry expects a promising future. Most gamers are young people and about half of India’s population is under the age of 25. Also, thanks to the proliferation of affordable smartphones and data connectivity, internet penetration is going deeper into India’s hinterlands. The number of smartphone users is expected to hit the 859 million mark in 2022 from 468 million in 2017. On the other hand, the number of active internet users is expected to grow from 451 million in 2019 to 829 million users by 2021.

The widespread adoption of digital payment methods remains another contributing factor, enabling more people to pay on online gaming portals. The number of people using credit/debit cards, net banking, UPI and e-wallets, etc will grow from 100 million in 2019 to 300 million in 2022.  More than 300 million Indian gamers downloaded around 5.6 billion mobile gaming apps in 2019, already placing India among the top five online mobile gaming markets.

Online gaming in India amid the COVID-19 crisis

The Covid-19 pandemic and subsequent lockdown have undoubtedly served as a growth catalyst for the gaming industry. With people being cooped up inside their homes and playing games on their phones to pass time, the consumption of online gaming services went up rapidly. The World Health Organization (WHO) even encouraged people to stay at home and play video games by supporting the #PlayApartTogether gaming campaign over social media platforms.

During the prolonged lockdown, online gaming opened up an avenue for people to socialize and connect with family, friends and colleagues. India witnessed a spurt in the usage of online games and the number of visitors on gaming platforms in the lockdown months. The visits to online gaming websites and apps rose by 24 per cent between the months and February and March. Moreover, engagement, indicated by time spent on gaming sites and apps, increased by 41 per cent between 1st March and 21st March, according to a report published by the Publicis Group India.

What lies ahead for the Indian online gaming industry?

According to a report by KPMG India and Google in 2017, the Indian online game industry is a 1 billion dollar possibility by 2021. Another report by boutique investment bank Maple Capital Advisors states that the Indian gaming industry is expected to grow at a CAGR of 41% and reach 3,750 million dollars by 2024 due to improved digital infrastructure, and a substantial increase in engaging gaming content and quality.

With startups offering augmented or virtual reality gaming with advanced graphics, regional language interfaces and smooth user experience, gaming will no longer be a mere hobby. In India, currently, there are 400 gaming startups, which are ready to capitalize on the increasing number of smartphone and internet users. With live sports mostly on hold and immersive e-sports and real money games reaching new levels of popularity, money is pouring into the Indian gaming industry.

It has already attracted 350 million dollars in investment from venture capital firms from 2014 to 2020. Now, after explosive market growth amid coronavirus crisis, gaming and technology companies from all over the world, including the US, Japan, South Korea are investing in the Indian market.

It seems amid the coronavirus pandemic, the online gaming platforms got the chance to showcase their offerings while helping people maintain social distancing and stay connected with others. This left a lasting impact and now more and more people taking gaming seriously and participating in online gaming tournaments. With COVID-19 driving engagement for an already thriving industry, India is poised to emerge as the next biggest market for online gaming.

Nitesh Salvi, CEO & Cofounder, Pocket52