With milestones like the Indian Dota 2 team winning a bronze medal at the Commonwealth Esports Championship and with esports being added as a medal sport at the Asian Games 2022 (to be held in 2023), the industry saw a dramatic increase in popularity in the country in 2022.
According to FICCI-EY Media and Entertainment Report 2022, the number of esports players in India doubled from 300,000 in 2020 to 600,000 in 2021, and esports revenue grew by 29% from `7.5 billion in 2020 to `9.7 billion in 2021. This growth is expected to continue with the number of esports players reaching one million, of which 20% would be women. The growing digital penetration in India and the ubiquity of smartphones along with high-speed internet and incredibly low data prices have all contributed to the popularity of esports, online games that are played competitively as part of tournaments and leagues.
Last month, the government also officially recognised esports in the country, which will now be part of the “multisports event” category in India under the Ministry of Youth Affairs and Sports. With India’s participation in the upcoming Asian Games, Olympic Esports Week, and the AIMAG (Asian Indoor and Martial Arts Games) 2025 also confirmed, experts say 2023 would be the year when India makes its presence felt on the international stage. This will help it garner more international interest from both publishers and brands.
It comes as no surprise that companies in India are making big investments in the gaming industry. The country’s apex body for esports, Federation of Electronic Sports Associations of India (FEAI), says as more and more companies come forward to develop the ecosystem in the country, the business is bound to get a leg up. Says Animesh Agarwal, founder and CEO of 8bit Creatives, “While Web3 has created opportunities for gamers and developers to become economically independent in an entirely new way, data management has enabled the sector to become more self-sufficient and futuristic. These additions have also helped enhance the gaming experience.”
Advertiser interest
Brands are keeping their ear to the ground to gauge consumer interests and incorporate esports in their marketing mix.
The year 2022 saw mainstream media such as television, OTT platforms, and INOX telecast as well as promote esports tournaments. Lokesh Suji, director, Esports Federation of India (ESFI), & vice-president, Asian Esports Federation (AESF), says non-endemic brands and decision makers across industries are taking a keen interest to leverage egaming through collaboration. Gaming influencers are now their go-to destination to engage with their target demographics — Gen Z and millennials.
“Gamers have a target demographic that is very digitally savvy and fiercely loyal. Combining this highly engaged fanbase with their capacity to curate intriguing material and not just conduct brand plugs will make gamers the most sought-after influencers in the coming year,” says Agarwal of 8bit Creatives. In other words, video gaming influencers and streamers have become a key medium for brands to enter the industry. This has led to the rise of more brand endorsement opportunities, monetisation tools, and streaming opportunities.
Also, since there is more clarity regarding the differences between esports (which is a sport) and iGaming (fantasy, fantasy, teen patti, rummy, poker, online gaming, gambling, betting, etc), esports will finally be considered a viable advertising medium like many other sports in the country.
Going forward, industry insiders say in-game trade, monetization, and transactions via blockchain and play-to-earn games, which have captured the attention of Indian gamers across demographics, will also play a major role in the industry’s rapid acceptance as a vehicle to reach potential consumers.
Global recognition continues to be one of the key determinants for the sector. The inclusion of esports in international multi-sport events or declaration by the International Olympic Committee (IOC) to host the Olympic Esports Week in 2023 has the potential to revolutionise competitive gaming worldwide, say experts. Esports Federation’s Suji says the industry will also see many more physical LAN (local area network) tournaments being held across various esports titles. “We have the Asian Games to look forward to where India is going to compete in five esports titles for an official medal.”