As per a Deloitte India report, The online gaming industry is expected to achieve an annual growth rate (CAGR) of 40% to $2.8 billion by the year 2022, up from $1.1 billion in 2019. Broadly driven by smartphones with availability of data at a modest rate and accelerated income, is supposed to increase the industry’s share in the entertainment industry by 4−5%.
As per the studies conducted so far, covid pandemic has boosted the growth rate of the sector as users relied on online gaming platforms during lockdown and non availability of outdoor entertainment. There was an increase in the usage of online games by 21% during the first phase of nationwide lockdown with the overall customer base with 300 million users. As vaccination processes have been initiated and various economic activities resumed after a long break a levelling off or maybe even decline in time users spent on online gaming platforms, the industry may face a severe downfall.
India being one of the top five mobile gaming markets in the world, with a 13% share of the global online gaming sector, is expected to increase 40 million online gamers during the period of 2020−22.
It is anticipated that 5G network and broadband proliferation will revolutionize the gaming sector, with more people joining online gaming cohorts and a rapid growth of online game streaming provides chances to gain economic benefits out of their passion for the same. The predictions regarding the gaming sector in India in terms of income is also brilliant. The Deloitte report also points towards this fact. Moreover the Indian gaming industry has been growing tremendously and can produce concrete incomes, enhance employment sector, assure safe and sound gaming and also wipe out immoral activities, like match-fixing and money laundering, if put under strict regulation.
Studies indicated that the gaming platforms are undergoing a transitional period. In-game revenue streams, chargeable expansion packs or virtual coin packs as well as subscriptions, are attaining momentum.
It is noted that in the last 6 years, more than $450 million have been attracted to Indian gaming platforms. Several investments such as those in Mobile Premier League have raised $90 million in the year 2020 from Pegasus Tech Ventures, JetSynthesys and Reliance Jio that invested in online mobile gaming startups like Krikey.
And in the case of gaming segments real money gaming is also assumed to have an increase in rate of about 40% from 2020−22. Several trends in this segment comprises increasing liking for games like poker and rummy, that will appeal to new users. Esports income is assumed to increase at a rate of 36% in the next few years. The findings of a report said that the number of people watching exceeds those who watch traditional sports on television. An Indian gamer spendsalmost 3.6 hours per week watching e-sport tournaments. In the meantime, fantasy sports income rises 9 times in the years between 2017−18 and 2019−20, reaching almost₹16,500 crore.
If the government initiates policy level employment it will see that any gaps in the talent pool are filled. It would also enable the online gaming industry of India to make full use of its potential.
As the online gaming industry is self-regulated, it has become important that the industry’s self-regulation practices should be recognized by the relevant ministries.And they should devise a regulatory framework by consulting with the industry stakeholders. This will result in a rise in investments leading to technological developments and additional info to the exchequer. The gaming industry contributes to solve problems of unemployment by giving employment opportunities through direct and indirect jobs from ancillary sectors such as telecommunications, marketing, financial services and banking, technology, events, and real estate.
The report also gives suggestions on how these new trends make impact on businesses and consumers all around the globe and in India. Based on the pandemic’s economic and societal effects, the report highlights a range of consumer technologies that would provide diverse opportunities to the business sector of India in the coming years.
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