Revenue of the global gaming industry is projected to reach USD 503 billion by the end of 2028 from USD 342 billion in 2023
At the ongoing Indian Gaming Convention in Delhi, consultancy firm PwC India unveiled a report highlighting the significant growth potential of both the Indian and global gaming industries through 2028.
The report estimates that the revenue of the global gaming industry would grow at an annual compound rate (CAGR) of 8 pc, reaching USD 503 billion by the end of 2028 from USD 342 billion in 2023.
PwC also states that the Indian gaming industry would almost double in size, reaching USD 7.94 billion in 2028 from USD 3.96 billion in 2023, generating about 20-30 million jobs in the process. It adds that Real Money Gaming, which also the largest sub-component of the Indian online gaming sector would reach USD 3.19 billion, growing at a reduced CAGR of 10 pc between 2024-2028 due to the impact of GST regulations.
Manpreet Singh Ahuja
“The influx of capital is creating a significant economic impact on the gaming sector, driving growth and opening up new opportunities across multiple industries. India, with its skilled talent pool and large domestic market, is at a pivotal moment to solidify its position as a global gaming powerhouse. By focusing on skills development, infrastructure, and fostering innovation and entrepreneurship, we can unlock the full potential of this industry. It’s essential to nurture a vibrant gaming ecosystem, promote e-sports at the grassroots level, and attract foreign investment. Building responsible gaming practices and robust player protection policies will be crucial to maintaining trust and ensuring the industry’s sustainable growth,” says Manpreet Singh Ahuja, TMT Sector Leader and Chief Digital Officer PwC India.
The report highlights nine key challenges including regulatory fragmentation, building sustainable business models due to the high GST impact, navigating ethical issues in monetisation, and addressing the talent gap, if not tackled could hinder this potential growth of this sector.
PwC also recommends a set of actions such as enacting a robust, national-level regulatory framework for online gaming and formation of an interdepartmental committee to address concerns, essential to harness the potential of the gaming industry.
“By focusing on skills development, infrastructure, and fostering innovation and entrepreneurship, we can unlock the full potential of this industry. It is essential to nurture a vibrant gaming ecosystem, promote e-sports at the grassroots level, and attract foreign investment. Building responsible gaming practices and robust player protection policies will be crucial to maintaining trust and ensuring the industry’s sustainable growth,” adds Ahuja.
The report also stressed upon the need for a clarification on GST demands for the period between 2017-2023 to ensure a steady flow of investments and promote ease of doing business in the sector.