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

India's gaming industry is on the verge of transformation, with a projected growth rate of 24% annually by 2026, according to the India Gaming Report 2024 by Dentsu and IWMBuzz. This growth is fueled by a confluence of accessible technology, a young tech-savvy population, and the rise of gaming trends.

Affordable smartphones and low-cost internet have democratised gaming, making it a mainstream activity across urban and rural areas. A third of Indian gamers now invest in their gaming experiences through in-game purchases and ad-supported models. Esports, led by popular titles like BGMI and Valorant, has emerged as a dominant cultural force, rivaling traditional sports like cricket in popularity. The success of Indian gamers on platforms like YouTube and Twitch underscores the global opportunities this ecosystem offers.

Technological advancements such as virtual reality, augmented reality, and 5G are poised to revolutionise how games are experienced, with 18% of gamers expressing interest in immersive VR/AR setups and 14% favoring mobile gaming innovations. Smaller metro cities exhibit the highest enthusiasm for VR, while younger gamers gravitate toward mobile-first experiences. This indicates a diverse and evolving market eager for new innovations.

Gaming is also emerging as a fertile ground for brand engagement. From subtle in-game product placements to reward-based interactions that enhance gameplay, brands are finding creative ways to connect with consumers during their most engaged moments. This trend highlights the potential for gaming to become a dominant platform for advertising and consumer interaction.

Diversification within gaming genres is also gaining momentum, with players showing interest in puzzle games, narrative-driven adventures, and cooperative multiplayer formats. This shift is expected to broaden the gaming audience, inviting more players who may not identify with traditional competitive gaming titles.

Esports and traditional sports are also increasingly converging, with professional teams forming esports divisions and creating hybrid events that appeal to both digital and physical audiences. This blurring of boundaries is enhancing fan engagement and opening new opportunities for growth.

The report emphasises the importance of collaboration between developers, brands, and policymakers to sustain this momentum. India’s gaming sector is not only shaping how people play but also how they connect and innovate. With its young, dynamic population and expanding infrastructure, the country is poised to become a global leader in the gaming revolution.

Commenting on the report, 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. 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 added, “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 business 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."