Observed Signal · Jul 10, 2026 · Market Report · Source: PocketGamer.biz · Impact: 4/5 · Sentiment: Positive
India mobile games market to hit $2.4bn by 2029
A MIXI Global Investments 'India State of Play' report (authored by Naavik, using Sensor Tower and AppsFlyer data) projects India’s mobile games market will reach $2.4 billion by 2029, driven by more than 600 million active mobile gamers and 9% year‑over‑year player growth. India recorded 7.95 billion mobile game installs in 2025 and generated $1.1 billion in mobile games revenue that year; the market is forecast to reach $1.5 billion in combined IAP and IAA revenues in 2026 (14.6% YoY growth). The report highlights the September 22, 2025 Promotion and Regulation of Online Gaming Act (PROGA) ban on real‑money gaming (RMG), which previously accounted for roughly $3.7 billion and ~85% of gaming revenues, forcing a shift toward IAP and ad‑monetised models. The piece also notes government incentives (Maharashtra $390m, AVGC‑XR $47m corpus) and classifying game studios as Essential Services.
The report combines large market growth projections and granular monetisation data with a major regulatory change (PROGA's nationwide RMG ban) that reshapes revenue mix toward IAP and ad monetisation; this materially affects publisher monetisation strategies, ad inventory supply, and regional investment/incentive policies.
Track Sensor Tower Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your free Explorer workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- India's mobile games market is projected to reach $2.4 billion by 2029.
- India has more than 600 million active mobile gamers and recorded 7.95 billion installs in 2025.
- The report (MIXI Global Investments, authored by Naavik) used data from Sensor Tower and AppsFlyer.
- The Promotion and Regulation of Online Gaming Act (PROGA), enacted 2025-09-22, effectively banned online real‑money gaming nationwide.
- RMG was previously worth $3.7 billion and contributed ~85% of total gaming revenues, supporting an estimated 200,000 jobs and generating around $2.3 billion in taxes.
Connected Companies & Entities
2 Entities mapped“That’s according to a new India State of Play report by MIXI Global Investments authored by Naavik with data from Sensor Tower and AppsFlyer...”
“That’s according to a new India State of Play report by MIXI Global Investments authored by Naavik with data from Sensor Tower and AppsFlyer...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Global Platforms Capture Most Gains in India’s App Boom
India’s mobile app market posted strong growth in Q1 2026, with in‑app purchases surpassing $300 million (up 33% year‑over‑year), driven primarily by non‑gaming categories such as utilities, video streaming and generative AI, Sensor Tower’s data shows. Non‑gaming apps generated over $200 million in Q1 (up 44% YoY). Annual in‑app purchase revenue rose from $520 million in 2021 to more than $1 billion in 2025 and is projected to reach about $1.25 billion in 2026. Downloads have stabilized near 25 billion annually, while time spent on apps and monetization per user are improving — though India’s revenue per download (~$0.03) still lags Southeast Asia and Latin America (> $0.20). Much of the spending and top rankings are captured by global platforms (Google One, Facebook, ChatGPT, YouTube), while domestic players are prominent in video streaming (JioHotstar, Sony LIV).
India's App Market Shifts from Downloads to Payments
India's mobile app market recorded $345 million in consumer spending in Q2 2026, a 35% year-over-year increase, according to Sensor Tower. Growth is being driven by generative AI, streaming, and productivity apps rather than gaming, while quarterly downloads have held steady at about 6.3 billion. Wider adoption of digital payments such as the Unified Payments Interface (UPI) and digital wallets has reduced friction for in-app purchases, boosting subscriptions and premium services. Sensor Tower data shows OpenAI and Anthropic accounted for nearly 83% of AI app revenue in India during Q2, and non-gaming apps represented 68% of mobile app revenue in H1 2026. Appfigures notes subscription growth continues but at a slower pace after an AI-fueled surge.
Global mobile IAP revenue hits $43.6B in Q2 2026
Global mobile in‑app purchase (IAP) revenue rose 5.3% year‑on‑year to $43.6 billion in Q2 2026, while total app downloads remained broadly stable at 36.8 billion. Sensor Tower's Digital Market Index shows mobile gaming downloads declined 12% YoY as non‑gaming downloads grew 6% (driven by categories including Generative AI and Movies & TV). Regional highlights include China adding $519 million YoY (reaching $5.7bn, +10%), Mexico growing 30% YoY (fastest among highlighted markets), and India remaining the largest market by downloads (~6.5bn). Separately, US digital advertising spend rose 15% YoY to $49.4bn in Q2 while US retail media impressions fell 19% to 108bn.
Track Real-Time Market Signals & Shifts
Set up custom watchlists to receive automated, evidence-grounded executive digests whenever material signals or shifts occur across your tracked landscape.