"The Indian mobile gaming market will grow to USD 571.6 million by 2016 at 134.5 per cent compounded annual growth rate (CAGR) between 2013-2016 (from about USD 44.3 million in 2013)," Newzoo-OneSky estimated.
At this rate of growth, India will continue to be one of the world's fastest growing mobile gaming markets, at least in the near future, it added. "With an year-on-year growth of 132.2 per cent, revenues in India's mobile gaming market have grown more quickly than those in any other BRIC country.
In fact, that y-o-y growth is among the highest in the world," the study said. The market's growth has been driven by a base of 131.7 million mobile (smartphones and tablets) gamers and with strong mobile infrastructure, it is expected to thrive in the future, it added.
However, mobile video gamers in India are also less likely to pay for their gaming activities than their counterparts in other BRIC countries, it said. Out of 131.7 million mobile gamers in India last year, just 23.7 million, or 18 per cent, paid for gaming content, the report said.
This compares with 27.1 per cent of mobile gamers in Russia, 35.4 per cent in Brazil and 30.2 per cent in China who paid for content. The average revenue per user (ARPU) of mobile gamers is USD 0.78, far below the global average and again the lowest among BRIC markets.
"By 2016, India is projected to have 208.2 million mobile gamers, a 22.8 per cent CAGR from 2013. As the purchasing power of these gamers increases, the ARPU is expected to rise as well to USD 2.75.
That is a modest number, but it represents an amazing 351 per cent growth from 2013," it said. The report said connectivity and payment issues due to low penetration of credit cards could suppress revenue growth in the mobile gaming market.