Esports & influencers are shaping gaming lifestyle for Gen Z & Alpha: Dentsu Report

India’s gaming community continues to grow rapidly, with 16.63 crore gamers in 2025, marking a 20% year-on-year increase, according to Dentsu’s latest report with IWMBuzz Media on the country’s gaming landscape. The Indian pure-play gaming industry is currently valued at approximately Rs 8,248 crore, having grown at 22.8% and is projected to reach 24.68 crore by 2027, growing at a compound annual growth rate (CAGR) of 21.84%.

The study highlights that free-to-play games continue to dominate the market. However, revenue streams are becoming more diverse, with advertising, subscriptions, and micro-transactions contributing significantly to overall earnings.

The report notes that esports and gaming influencers are shaping gaming as both a lifestyle and identity, particularly Gen Z and Gen Alpha. Local storytelling is also fueling the sector’s expansion; mythology, folklore, and hyper-local narratives are driving creativity and adoption in tier 2 and tier 3 cities, making gaming more inclusive across regions.

Emerging areas such as mid-core games, role-playing games (RPGs), and brand-led gaming experiences are identified as potential growth drivers. The report also points to opportunities for cross-industry collaboration, including partnerships with animation, VFX, and advertising sectors, to scale Indian gaming IPs for global markets.

It states, “The next phase of growth is not just about creating for India, but about positioning Indian games as global exports. Just as anime and K-pop have reshaped cultural influence for other nations, India's mythology, folklore, and Indo-futurist storytelling can become a cultural multiplier abroad.”

However, the report highlights challenges such as gaps in live operations, game economy design, and AAA pipelines. It also notes that discoverability and limited mentorship continue to affect the quality and reach of Indian studios.

Technological advancements are beginning to address some of these issues. Generative AI is helping speed up processes like prototyping, animation, and quality assurance, improving production efficiency.

The report adds that regulatory clarity and AVGC-XR policy initiatives will play a crucial role in legitimizing the ecosystem. With these enablers in place, India could evolve from a consumer-heavy market to a global creative powerhouse by 2030, the study concludes.

Speaking of the report, Harsha Razdan, CEO, South Asia, Dentsu, said, “Gaming in India is alive, loud, and unstoppable. Creators are building worlds, testing limits, and turning passion into careers. At Dentsu India, we don’t just watch this ecosystem grow. We shape it, map its potential, and guide the market toward the opportunities of today and the promise of tomorrow.”

Narayan Devanathan, President & Chief Strategy Officer, South Asia, Dentsu, added, “This report is more than data. It is a blueprint for creators, studios, and brands. Gaming today is India’s fastest-growing creative frontier, and we are leading the conversation with authority, insight, and vision.”

Siddhartha Laik, Founder & Editor-in-Chief, IWMBuzz Media, said, “Gaming is no longer niche. It is mainstream, inclusive, and dynamic. Partnering with Dentsu allows us to celebrate the talent, innovation, and ambition powering this sector, and to tell India’s gaming story boldly, accurately, and on the world stage.”