Levelling Up: The Bright Future Of Online Gaming
Online gaming in India has been on a roll, with skilled games like rummy captivating players from all over the country. In a world where technology is advancing at a high speed, it’s no surprise that the online gaming industry is also experiencing a transformation like never before.
Numbers Don’t Lie
When it comes to growth projections, the online gaming sector in India paints an impressive picture. India’s gaming market is anticipated to surge from USD 2.8 billion in 2022 to USD 5 billion by 2025, with a compounded annual growth rate (CAGR) projected to be between 28-30 percent. In fact, the gaming industry has witnessed remarkable growth between 2017 and 2020, presently expanding at a CAGR of 38 percent.
A recent survey released by the E-Gaming Federation and Indian Statistical Institute of Kolkata has shed light on the huge potential of the online gaming sector. The survey titled “Unveiling the Potential and Scope of the Online Skill Gaming Industry,” arrives at a critical juncture when the sector faces a taxation rate of 28 percent, which has raised doubts about the viability of numerous entities, particularly smaller ones.
This survey, guided by two ISI professors, Diganta Mukherjee and Subhamoy Maitra, encompassed 4,644 engineering students and professionals across five states—Andhra Pradesh, Telangana, Kerala, Karnataka, and Tamil Nadu. Its objective was to investigate their views, aspirations, and inclinations regarding the online skill gaming sector.
The findings of the study indicate that the majority of participants hold a positive outlook on India’s potential to take the lead in the global gaming industry.
Maitra, a professor at the ISI, Kolkata, stated, “This analysis unearths a strong belief among the respondents that India’s homegrown gaming industry can reduce the brain drainage of talents in the technology domain, offering them opportunities towards innovation and growth right here on home soil. Within the larger gaming domain, from an intellectual point of view, skill gaming enjoys a particularly strong interest among technology professionals.”
Key Findings of the Survey
- 55% of the participants have expressed their interest in the online skill gaming sector due to its focus on technology adaptation and innovation.
- 73% of respondents have expressed their interest in pursuing professional education in the gaming sector.
- Meanwhile, 42% have shown their interest in pursuing a career in Artificial Intelligence and Machine Learning (ML).
- 68% feel that the online skill gaming sector will help improve their own skill sets.
Addressing the tech drain
While acknowledging the significance of data science and AI within the online gaming industry, a majority, specifically 63 percent, felt that existing courses required additional tailoring to better match the specific requirements of the sector.
A large chunk of skilled engineers are flocking abroad for further studies. In such a scenario, the online gaming industry has the potential to emerge as a highly promising career path, providing avenues for skill development and innovation within the home turf.
The Secret Sauce: Innovation
Technology and innovation stand as fundamental factors that continue to make the gaming industry appealing to skilled engineers. In fact, among the engineers who were surveyed, a significant 75 percent majority expressed a preference for careers in technology fields associated with 5G, the metaverse, virtual reality (VR), and emerging technologies, demonstrating a keen interest in driving innovation within the industry.
- More Jobs: Online Gaming is also creating lots of job opportunities. People are getting hired to make games, and do all sorts of cool stuff.
- Investors Love It: People are investing lots of money in gaming startups because they believe in the industry’s future. Nikhil Kamath, founder of Zerodha, recently invested around ₹100 crore in an online gaming company.
- Everyone’s Playing: People of all ages are into online gaming now. Thanks to low priced smartphones and easy internet access, gaming is for everyone.
The Way Ahead
In 2023, the government has announced to levy 28% GST on online gaming. Earlier the gaming industry used to pay GST on Gross Gaming Revenue (GGR) but now 28% GST will be applied whenever a player makes a deposit in online games like rummy.
Experts have noted while this will impact the industry, it will also give them a chance to innovate and rebuild the foundation of Indian gaming.
Online gaming in India is on the rise! With new games, lots of players, and investors betting big, the future looks bright for gaming in India.