In the Esports space, both gaming and non-gaming brands have made inroads. Given the engaged audience and growing base of players and...

With global esports audiences expected to exceed 500 million by 2020, the opportunity for brands and advertisers to engage in this rapidly growing space is obvious. The gaming and esports sector in India is expanding and expanding at a rapid pace. The online gaming industry is thriving as a result of the easy availability and accessibility of technology and the internet. The concept is now well-known and popular, particularly among millennials and Generation Z. The esports industry has performed admirably across all verticals during the pandemic.

Note:

  • The current net worth of the industry stands at INR 43.8 billion, according to the IFSG-KPMG survey, which is expected to hit INR 118.8 billion by FY23.
  • In the soon-to-be USD 1.5 billion esports market, India currently ranks 17th globally. The Indian esports market is estimated to be worth $818 million, and is expanding rapidly despite the lack of structure.
  • Nazara Technologies became India’s first gaming company to file for an IPO in early 2021. 
  • As per the Venture Intelligence report, since April 2020, venture capital funds have invested $438 million in Indian gaming start-ups. Inc 42 Plus reported a similar trend where the total venture capital funding in Indian gaming startups was estimated to be $448 million between 2014 and 2020.
  • The aggregate value of esports start-ups in India reached $68 million in the Financial Year 2020 and the industry is expected to grow by a CAGR of 36% in the next 3 years.
  • India has around 300-400 million gamers alone, thereby making it one of the preferable markets to invest by the capitalists.

How it’s going in 2021

India also has one of the world’s largest esports fan and audience bases. It is becoming a hub for both established and aspiring gamers to come try their hands and extract value from the growing sector. 

India’s growing market will result in the creation of more job opportunities, and the industry will hire even more talent. A game designer, game developer, and tester are among the positions most eagerly sought after. While the sector evolves and organises inter-regional and inter-city esports tournaments, as well as seeing an increase in brand sponsorships, the prize value is also rising. This encourages young people to pursue full-time careers in esports and online gaming. Publishers such as Garena, Riot, and Krafton are actively investing in and growing Esports in India. 

According to Niti Aayog’s report, “Guiding Principles for the Uniform National-Level Regulation of Online Fantasy Sports Platforms in India,” the fantasy sports industry in the United States (US) was the largest until it was recently surpassed by the Indian industry.

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Netflix is finally incorporating games into its massive library of content. It’s a massive power play and a markedly different approach from rival services that are primarily focused on acquiring intellectual property. It’s a new way for Netflix to keep subscribers interested in its service — and gaming could be the winning strategy for the company’s continued streaming dominance.
Netflix initially tested the five early mobile games in select European markets following the acquisition of video game developer Night School Studio in September.

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Future of Esports in India

According to industry estimates, there are over 300 million gamers in India. Given the current situation, the sector is expanding and growing. The following are the primary factors that will drive the sector’s growth in the coming years:

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Live Streaming and Increased Viewership

The gaming industry, which is dominated by the young generation, provides users with fun and frolic experiences while also extending their leisure time. Real-time streaming of gaming content, combined with regional streaming, will aid in gaining traction and building a strong, extensive, and diverse audience base.

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Increase in prize pools and career prospects

The increase in prize money in tournaments by esports firms has resulted in increased participation by players, as well as increased brand sponsorships. The prize value is encouraging the youth to pursue a full-time career in esports and online gaming. The options for a career are numerous. As a result, aspirant gamers are more likely to be created and developed.

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Esports in Education

The pandemic has hastened digital penetration and business growth. It also fueled the growth of the Indian esports industry. Given its growing popularity, the day will not be far when esports will be incorporated into the curriculum and taught to students as a full-fledged course.

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Financial growth and non-endemic brand collaborations

Sponsorship and advertising from non-endemic brands are now permitted in the market. Despite the fact that they are not directly related to esports, they would be drawn to such alliances because they will help them break into the esports group. They will also help them gain traction and exposure. As a result, they will be able to diversify their brand mix and increase the value of their brand.
By running paid advertisements on well-known esports channels, advertising goods and services through in-game plug-in promotions, brand integrations, and sponsorship, marketers hope to gain exposure, viewer interaction in a live environment, contact with millennials, and awareness in the esports market.
As a newcomer, the industry will have greater potential for innovation as well as greater brand freedom. Because of the esports and gaming industries, they will be able to tell their stories in a narrative format, but with a twist.
A number of angel investors and venture capitalists have since expressed interest in the esports industry. It will continue to raise funds from investors and advertisers, and esports monetization will soon reach a high point.

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Increased Mobile Usage

According to the BARC and Nielsen report, the number of mobile gaming users per week increased to 68 percent during the lockdown period, up from 60 percent prior to the lockdown. Furthermore, time spent on mobile games per user per week increased from 151 minutes prior to the lockdown to 218 minutes during the lockdown.
This figure is expected to rise as smartphones become more widely used around the world. High-speed broadband service is also becoming more widely available. Esports and online gaming can grow in tandem with smartphone usage.
It will have a significant impact on the growth of the industry in India. The Indian gaming industry, particularly esports, has grown from the ground up into a multibillion-dollar ecosystem. Despite its setbacks, the sector is bursting at the seams with energy, innovation, and opportunities.
Increased capitalist funding, brand partnerships, and increased cell phone use are driving the growth of esports in India.