Niko Partners: Why It’s Time to Enter India’s Gaming Market

India’s video game market has reached an inflection point, with Niko Partners reporting that 2025 marks the first year player spending will surpass $1B, as the country’s gamer population is expected to climb past 500 million. The growth rate and scale make India the fastest-growing gaming market in Asia and MENA, offering unparalleled opportunities, but also demanding a long-term, tailored approach from companies considering entry.​

India’s Rapid Growth and Deep Potential

Unlike a decade ago, video gaming in India has become widely accepted across age groups and social strata. The stereotype of games as a waste of time or a distraction from studies is fading, replaced by a culture where grandparents and teens play side by side, and commuters routinely game on mobile devices. This normalization of gaming comes at a time when digital infrastructure (UPI, 5G) is robust, and localization barriers are falling.​

Niko Partners estimates India will hit over $1B in player spending and 500M gamers in 2025, with forecasts reaching $1.5B in revenue by 2028, and more than 724M gamers by 2029. Mobile gaming dominates, with 95% of all Indian gamers opting for smartphones. The audience is increasingly diverse; women now make up about 40% of Indian gamers (almost double from five years ago). Over a quarter of the total gamer base, about 126M, are paying customers.​

Battle royale remains the top genre, with 40% indicating plans to play such games extensively in the next year. Esports engagement is high, with about 60% of gamers interacting with esports titles, watching competitions, or participating in tournaments.

Social media (59%), short video apps, and influencers are the primary channels for game discovery, reflecting a vibrant, socially connected gaming community. Importantly, spending patterns are shifting, with paying gamers and average spends per user both rising. Female gamers who pay now outspend male gamers by 8.5% per month on average.​

While the numbers are promising, Niko Partners cautions that India is not a plug-and-play market. The country is diverse, with regional nuances in gamer preferences and spending. Success comes from localized experimentation, mobile-first design, live-ops engagement, and incremental scaling. Rapid growth should not overshadow the need for careful market study and adaptation.