30% of gamers make in-app purchases or engage with ads: Report

New Delhi: Dentsu India has unveiled the ‘India Gaming Report’, an analysis of the country’s gaming ecosystem. 

According to the report, the Indian pure-play gaming industry is valued at Rs 6,715 crore and is set to grow at a CAGR of 24%, reaching Rs 10,487 crore by 2026.

With 13.85 crore gamers and an 11.82% annual growth rate projected until 2026, gaming is evolving into mainstream entertainment, stated the report. 

Dentsu highlighted that about 30% of gamers make in-app purchases or engage with ads, a number set to rise with higher disposable incomes.

“Revenue is led by in-app purchases and ads, with average revenue per paying user ARPPU at Rs 1,610 annually, expected to grow with quality enhancements,” mentioned the report.

It further shared that e-sports like BGMI and Valorant are booming, creating career opportunities, and attracting sponsorship.

Government initiatives like Digital India and funding support are fostering local game development, enabling culturally relevant content and legitimising gaming careers.

Harsha Razdan, CEO – South Asia, dentsu, said, “Gaming today is far more than just entertainment; it stands at the crossroads of culture, technology, and imagination. In India, this evolution mirrors the entrepreneurial spirit that has fueled our own growth. Thanks to accessible smartphones and affordable data, gaming has become a mainstream activity, reaching even the most remote corners of our country. With the sector poised to grow 24% annually by 2026, gaming is not only a thriving industry but a powerful driver of creativity, connection, and opportunity.” 

He added, “The India Gaming Report highlights how we, as a nation, are rewriting the rules and building a future that’s inclusive, innovative, and full of possibilities. This is a testament to dentsu’s belief in ‘Innovating to Impact’—where we look beyond the surface, focus on people, and create solutions that solve problems, unlock new opportunities, and shape a better tomorrow for everyone. Ultimately, it’s about ensuring that every individual, no matter where they are, has the opportunity to dream, create, and thrive.”

Narayan Devanathan, President and Chief Strategy Officer, South Asia, dentsu, commented, “This comprehensive India Gaming Report 2024 embodies the spirit of Sanpo-Yoshi, or benefiting the three types of stakeholders of business, customers and society. By painting a vivid picture of the unprecedented business opportunity in gaming, it showcases how brands can meaningfully engage with customers in the gaming ecosystem. By furthering the story of an emerging, unstoppable India with gaming as the new frontier across every town class, it celebrates the customer's story of progress and upward mobility. And by highlighting the cautions that both businesses and customers must be mindful of regarding the performance pressures and mental health concerns of gaming, it reminds us of the opportunity to build a healthy and vibrant gaming ecosystem from the get-go. We're proud to make this significant contribution with the India Gaming Report 2024."