The revenue in the esports market is forecasted to reach an impressive US$166.3 m by 2028 with a steady annual growth rate (CAGR 2024-2028) of 7.44%. The rapid expansion and immense potential of this market have piqued the interest of investors, developers, and marketers worldwide. The future of esports in India looks promising, let’s see what might be the contributing factors:
Rise of mobile esports
The Indian esports market has been on an upward trajectory in recent years, propelled by factors such as affordable internet, widespread smartphone usage, and the growing popularity of competitive gaming. With a projected market volume of US$185.80 m by the end of 2027, mobile esports are going to continue to witness an exciting period of growth and innovation.
A crucial driver of this growth is the rise of mobile gaming. India continues to be a ‘mobile first’ market, with 94% of its gamer base engaging in mobile gaming. Popular mobile titles like BGMI and Free Fire have not only captivated Indian gamers but also laid the foundation for a thriving esports ecosystem.
Growing viewership and fanbase
With platforms like YouTube, Discord, Twitch, and Facebook Gaming gaining popularity, there’s a growing fanbase for esports in the country. As per the reports, it’s projected that by 2025, there will be around 85 million viewers of esports events on 20 different platforms making India one of the fastest-growing markets for esports viewership. These numbers have placed esports into the mainstream status with established OTT players.
The massive popularity of streamers and gamers is another testament to the increased esports fanbase. These players aren’t just popular online and offline but now they’re also getting government appreciation and recognition. Naman Mathur, Payal Dhare, Anshu Bisht, Animesh Agarwal, Tirth Mehta, and Mithilesh Patankar are some of the biggest names in the gaming industry and they were invited by PM Narendra Modi on a roundtable to discuss the future of esports in India.
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Government recognition
In recent years, the government has acknowledged the potential of esports and gaming as a significant contributor to the economy and a platform for skill development. Some key instances of government recognition include:
- On 23rd December, 2022, the Ministry of Youth Affairs and Sports included esports in the category of ‘multisports events’.
- Indian esports debuted as an official medal sport at the 2022 Asian Games in Hangzhou.
- On 11 April, 2024, Prime Minister Narendra Modi held a roundtable conversation with top gamers in the country to discuss the issues in the gaming industry and esports at large.
Corporate sponsorships and partnerships
Corporate sponsorships and partnerships will play a pivotal role in shaping the trajectory of esports in India. As the industry continues to gain momentum, businesses across various sectors are recognising the immense value in aligning themselves with the rapidly growing Indian esports ecosystem. For example, the recent partnership between Indian esports team SOUL and iQOO.
This partnership marked a historic moment in Indian esports and is a win-win scenario for both the involved parties. This partnership solidifies iQOO’s position as an active contributor to the esports ecosystem in India and helps it reach the new gaming generation while also empowering SOUL to continue its successful strides in esports.
From sponsoring tournaments and leagues to partnering with esports organisations for marketing campaigns and product endorsements, the avenues for collaboration are diverse and impactful.
Some key corporate sponsorships and esports partnerships are:
- S8UL collaborated with Velocity Gaming in early 2023 for creating a star-studded roleplay server in GTA V which led to a surge in viewership and engagement for its creators.
- Vodafone Idea (Vi) partners with Paris based Team Vitality, an internationally acclaimed esports organisation.
- Battlegrounds Mobile India (BGMI) has collaborated with UniPin.
- PGL has announced a partnership with Perfect World to introduce a series of Dota 2 and CS2 tournaments.
Corporate involvement in esports can go beyond mere branding opportunities. By investing in the infrastructure, training programs, and talent development initiatives within esports, businesses can contribute to the long-term growth and professionalism of the industry.
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Educational initiatives
From days where gaming was considered bad to the addition of esports in the education sector, India has come a long way. With esports making its way into the educational sector, some institutions are offering courses and programs related to gaming and esports management. This could contribute to the professionalisation and mainstream acceptance of esports in India.
According to IMARC Group, the Indian esports industry would grow at a CAGR of 21.1% between 2023 and 2028. With the rise of esports quite obvious, it’s important for the government to take educational initiatives to support it. Promoting esports in education can offer students better hands-on experience, give them better learning opportunities, and help them develop strategic skills.
Conclusion
With the ongoing advancements in technology and the increasing accessibility of gaming platforms, esports in India is set to reach new heights, fostering talent, community, and a sense of pride on the global stage. As stakeholders across sectors recognise the immense potential of esports, the journey ahead promises to be thrilling, transformative, and full of possibilities for esports businesses, players, fans, and the industry at large.
Want to know more? Watch our conversation with Vinit Karnik, the Head of Sports, E-Sports and Entertainment at GroupM ESP. Here we discuss the business of sports, at large and what to expect from the future.
