India’s Gaming Market Surpasses $1 Billion for the First Time, Driven by Mobile Growth and Changing Player Behavior
Highlights from Niko's new India Player Behavior and Market Insights Report
India’s gaming market reached a major milestone in 2025, generating $1.04 billion in revenue, up 14.8% year-on-year and exceeding $1 billion for the first time. According to Niko Partners’ forecasts, revenue will continue growing to nearly $1.2 billion in 2026 before reaching $1.77 billion by 2030, representing a five-year CAGR of 11.2%. India remains the fastest-growing video game market among the ones tracked by Niko Partners.
Market growth is being fueled by both scale and engagement. Niko Partners estimates that India recorded 511 million players in 2025, with this figure expected to cross 550 million in 2026, and reach over 700 million by 2030. However, while this places India as having one of the largest player bases in the world, monetization remains at an early stage, with ARPU reaching $2.04 in 2025 and forecast to grow to $2.52 by 2030. This combination of a massive audience and increasing spending makes India an attractive opportunity within the global games market.
Why India’s Gaming Market Is Growing
The primary driver of market growth is continued spending on mobile games. As digital adoption expands and disposable incomes rise among certain consumer segments, India is seeing a growing proportion of high-spending players contribute to overall market revenue.
The market is also becoming more diverse. While battle royale and casual games remain important, Niko Partners is observing growing audiences for a wider range of genres across mobile, PC, and console platforms. These audiences may be smaller in size, but they often generate higher value and engagement, creating new opportunities for publishers seeking growth beyond mainstream genres.
Several long-term trends are expected to shape India’s gaming industry over the next five years:
Growing engagement with genres beyond battle royale and casual games.
Increasing player engagement with legacy PC titles.
More support for gaming from both national and state governments.
Rising participation in esports, leading to deeper engagement and stronger gaming communities.
Greater opportunities for publishers that can effectively target specialized player segments.
Together, these trends are helping transform India from a high-volume gaming market into a more mature and diversified gaming ecosystem.
UGC Platforms Continue to Expand While Attitudes Toward AI Shift
User-generated content (UGC) platforms such as Roblox and Minecraft are becoming increasingly popular among Indian players, particularly younger audiences. Even roleplay within Grand Theft Auto has become popular on livestreaming platforms. These platforms combine social interaction, creativity, and highly shareable gameplay experiences, making them especially attractive to digitally native consumers.
At the same time, Niko Partners has observed a notable shift in sentiment when it comes to Generative AI. Compared with previous years, Indian players are becoming more cautious about how AI is being used by both developers and players. Economic concerns appear to be a key factor driving this change, particularly as discussions around AI’s impact on employment become more prominent in the country.
As AI adoption accelerates across industries, gaming companies operating in India will need to balance innovation with player expectations regarding transparency, authenticity, and trust.
Some of the key takeaways from the report:
Female participation in gaming continues to increase, rising from 43% of players in 2023 to 49% in 2026.
Non-battle royale mobile games are capturing a larger share of market revenue, increasing from 53.2% of mobile game revenue in June 2023 to 62.8% in June 2026.
31.5% of Indian players prefer purchasing in-game content outside traditional app stores, including web stores, third-party stores, and top-up cards.
UPI dominates gaming payments, with 84.6% of Indian players having used a UPI-based payment method, significantly higher than credit card usage at 31.5%.
Fill out this form to download select key takeaways from the report.
These findings highlight a gaming market that is becoming more diverse, more sophisticated, and increasingly attractive to publishers, developers, payment providers, and investors. While India’s large player base remains one of its defining strengths, future growth will be driven by deeper engagement, evolving player preferences, alternative payment solutions, and the emergence of higher-spending audiences.
At Niko Partners, we help businesses turn market intelligence into action. Through our syndicated research, subscription-based insights, and custom consulting services, we provide the data, analysis, and strategic guidance needed to navigate the rapidly evolving gaming markets across Asia and MENA. Whether you are evaluating market expansion opportunities, analyzing player behavior, assessing monetization strategies, or tracking regulatory developments, our research helps organizations make informed business decisions with confidence.
Contact us to learn how Niko Partners can help your organization identify growth opportunities and build successful strategies in one of the world’s fastest-growing gaming markets.