Certainly, the online gaming market in India is flourishing more swiftly than other market segments. This is a mutually beneficial ecosystem for gaming developers, players and young entrepreneurs to satiate their lucrative appetite for online gaming. The proliferation of smartphones significantly contributed to this sonic boom in the Indian online gaming industry.
According to the latest market studies, India will witness 530 million smartphone users by the end of 2019. As a result, the Indian mobile gaming segment is likely to reach $1.1 billion by the end of 2020. Moreover, the number of gaming users is also expected to grow to 628 million by 2020.
The exponential growth of the online gaming sector is significantly drawing more and more young entrepreneurs into its fold, primarily those with a keen inclination to cash in on its success and set a benchmark in this industry.
But what specifically about online gaming is attracting entrepreneurs? Could it be just the nostalgia of familiar games or there is something else making this sector an attractive prospect?
Digital gaming is a versatile industry offering access to cutting-edge technology, excitement and a fair chance to participate in a dominating figure on the gaming horizon. Moreover, mobile gaming comprises microtransactions, subscription-based gaming and appealing purchases which prompt entrepreneurs to discover investment opportunities in the online gaming world.
But more interestingly there are 5 logical reasons why entrepreneurs are getting drawn to the gaming industry. Read below:
· Ripe Ecosystem
Much like retail and banking sectors which have migrated brick and mortar model to online model in the past few years, the Indian gaming industry has also moved online. The abundance of smartphones and easy accessibility to cheap internet data are effectively contributing to the rise of online gaming. Besides seamless options of digital transactions such as online payment wallets like Paytm and Mobikwik are the catalysts of this evolution.
·Youth Orientation and Community Building
Nearly 60% of Indian online gamers are below the age of 24 who are young, enthusiastic and dynamic. Young people have a stronger network and they leverage it to introduce such games to their peers, friends, and families. Besides, online gaming is an avenue of entertainment and fun which allows players to release stress and indulge in interesting activities. Online gaming also improves their social interactions as they are widely discussed in forums and communities which gives a loud shout out to the prominence of such games. Community members and other interested players connect to up-skill and re-skill, and thus, the game gets viral and start trending.
· Skill-based Earning
Online games are majorly skill-based games that interest most of the players who have traditionally played these games offline. Familiar games encourage skilled players to make the best out of online gaming. Based on the skills-level, players can grab the opportunity to earn additional income from online games or get into it professionally.
· Passionate Audiences
Interactive content, engaging features, and tech-savvy gaming platforms keep players glued to online gaming. Digital gaming websites communicate effectively with the young players and boost their engagement levels as high as 8 hours in a day. Moreover, these gaming portals are active round the clock, hence, allows players to play according to their time-preferences.
· Entrepreneurial Goldmine
Online gaming revenues are increasing at a pace of 22% every year and this sector is predicted to touch Rs. 11,400 crores by 2023. From 2014 to 2013, the market is expected to grow 3 times more while offering a massive opportunity for entrepreneurs to generate heavy revenues. The number of fantasy and skilled games players in India has also increased 25 times to 50 million in 2018 as compared to 2 million in 2016. According to reports, the number of users on online gaming platforms is expected to cross 100 million by 2020. Increasing interest in online gaming, increasing smartphone penetration and affordability, dropping internet price and expanding the user base of the internet altogether are promising a huge potential of growth for online gaming businesses.
Witnessing the evolution of the online gaming industry and its consistent offering of cash flow, profit delivery, along with a huge potential of capital investment and return on equity, is attracting many investors who are looking for promising companies in this high-growth vertical. The E-gaming platform like Dream11 which made a remarkable success by having 50 million subscribers in Feb 2019, is the perfect precedent of a gaming company that influenced Naspers Ltd. to buy its stake worth $100 million from Kalaari Capital.
Conclusion
According to industry experts, the digital gaming market in India will constantly evolve at an accelerated pace. After garnering the advantages of digitalization in India, gaming developers are coming up with innovative gaming formats including blockchain, machine learning, artificial intelligence and more to perfectly balance opportunities for players and the investors.
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