The rise and rise of Esports in India
The year 2022 has perhaps been the most exciting year for gaming and esports enthusiasts globally. With esports’ growing prominence, the world witnessed the first-ever Commonwealth Esports Championship. India’s stellar performance was acknowledged with a bronze medal win by the Indian Dota 2 squad. Continuing with this momentum, we are now gearing for the Asian Games, which will host Esports as a recognized medal event. This was inconceivable till a few years ago.
This year, we have also seen some of the biggest acquisitions in the gaming and esports industry – Microsoft announced its intent to acquire Activision Blizzard for a whopping $68.7 billion in cash, and two of the world’s biggest esports companies, ESL and FACEIT, have been purchased for a total of 1.5 billion dollars by Steer Studios . This is testimony to the unimaginable potential of this rapidly growing industry.
Gaming and Esports Explained
Although gaming and eSports are often used interchangeably, there are some fundamental differences between the two. Gaming refers to playing video games in general. This includes playing Candy Crush on your mobile phone, God of War on your Play Station, or Counter-Strike on your PC. Online card games like Rummy and Poker are also classified under gaming, not eSports. This type of gaming is as competitive as you want to be and is majorly a form of recreation.
On the other hand, Esports are online games that are competitively played in the form of tournaments and leagues. Some of them are digital or virtual versions of mainstream sports like cricket, football, etc. Over the last few years, the popularity of eSports in India has been surging. Let’s look at some statistics.
According to FICCI-EY Media and Entertainment Report 2022, the number of eSports players doubled from 300,000 in 2020 to 600,000 in 2021, and eSports revenue grew by 29% from INR 7.5 billion in 2020 to INR 9.7 billion in 2021. What’s more interesting is that this growth is expected to continue, with the number of esports players reaching one million in 2022, out of which 20% would be women. The gaming and eSports industry employs just over 40,000 individuals in India, and this is poised to grow.
The Catalyst
The pandemic has acted as a catalyst for the growing esports industry. Amid the lockdown, millions diverted their attention to gaming recreationally, with some even turning to professionals. This trend came on the back of increasing digitization and deeper penetration of Internet connectivity, and this is expected to strengthen with the advent of 5G. There has also been an influx of international game developers in the Indian market, and localization of prominent games. As a result, we have witnessed the growth of 76 online gaming startups in India since the onset of the pandemic, taking the total number to well over 400 gaming companies. With the rise in gaming innovation, we have seen innumerable employment opportunities and a dire need to upskill and reskill the current workforce to be equipped with the knowledge and technical prowess of developing and market games.
Over the last couple of years, we have also witnessed a sharp increase in the number of gamers from Tier-2 and Tier-3 cities in India, especially mobile gaming. Thanks to mobile-based platforms, access to skill-based games and tournaments have become easier. A large part of these recreational gamers are women who picked up the hobby during the lockdown and continued to play even when normalcy returned.
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More than just gaming
Esports enthusiasts have started increasing their engagement with tournaments and events for BGMI, Valorant, Call of Duty, Tekken 7, DOTA 2, and other games that are being conducted online. Sports games, multiplayer online battle arenas (MOBAs), first-person shooter (FPS) games, fighting, card games, and real-time strategy (RTS) are the most popular esports genres in the country. And these games are not just popular among the players but have a dedicated viewership too. The rapid increase of eSports viewership in India has created a lucrative marketing opportunity for both endemic and non-endemic brands.
Speaking about esports tournaments, the last edition of The International DOTA 2 Championships boasted a staggering $40 million in winnings and went up to 2.7 million peak viewers. When it comes to streaming games, Twitch is undoubtedly the largest streaming platform. In September 2021, 8.5 million channels were streaming monthly, and 1460 billion minutes were watched overall. This suggests that gaming and esports are not just big for players, but for viewers as well.
Leading brands and advertisers are collaborating with eSports platforms and tournaments to make the most of this growing space. In 2020, LetsGameNow collaborated with Flipkart for the Pro Gaming Showdown Tournament, and NODWIN Gaming partnered with Airtel to launch the Airtel India Esports Tour, a national ranking and award system for Indian esports players.
Advertising, collaborating, selling merchandise, and franchising via esports Teams have brought in a lot of revenue for brands. Gen Z and younger millennials remain the primary target audience for esports businesses. However, virtual gaming is no longer an expensive hobby for urban youth who can afford it. Interest in esports is expanding beyond metropolitan areas, covering Tier 2 and Tier 3 cities as well.
The Road Ahead
With innovative collaborations in the media and entertainment industry, a large number of international pop stars are hosting “in-game concerts.” As the name suggests, these are musical concerts performed virtually in the middle of popular games like Fortnite and Roblox, to name a few. The wide reach of these games allows artists to reach a wider audience base. While many of these concerts were free, all attendees had to create a game account. This led to an increased database of users, beneficial for these gaming companies.
The marketing potential in the esports industry is immense and with the advent of Augmented Reality and Virtual Reality, we can only expect brands to devise unique and ultra-creative campaigns. With the ever-evolving innovations and technology, this industry is only poised for bigger growth.
In India, esports has a promising future with greater recognition, huge rewards, and rising popularity. Gaming companies are looking for talent to capture the untapped market and audience with innovative and immersive games. The Indian gaming industry currently employs around 40,000 people. That number could jump to two lakhs by the year 2024. Professionals such as game developers, game designers, game programmers, and 3D artists are in huge demand.
As the gaming and esports industry grows rapidly, so does the need for a knowledgeable and skilled workforce. This has to expand beyond developing games and animation to analyzing, scripting, asset creation, and building a robust foundation that will enhance the industry. It is time that enthusiasts be allowed to pursue a successful careers in the world of gaming and esports.