India is clearly the next untapped market for games. I’ve heard a lot of interesting figures lately, but the market is dominated in the mobile space by Android at around 73 percent of the addressable market. I’ve also heard that India is also more accustomed to subscription based games and micro-transactions are something they are getting more comfortable with, so expect micro-transaction models to grow. Other interesting data includes:

  • The market for Digital Games in India is $853.9 Million in 2015
  • Mobile is 49 percent of the market, or around $416 Million today
  • Mobile is growing at a 64 percent growth rate year-over-year
  • By 2015, the mobile market for games in India is expected to be around $832 Million
  • There are approximately 185 Million mobile gamers in India in 2015
  • ARPPU in India for mobile games in October 2015 was $13.07 with a 1.53 percent conversion rate from player to payer
  • Digital console is 2.7% of the market today
  • MMO games are 28 percent of the market, with Free-to-Play MMO games comprising 21 percent of the total market
  • Cost-per-install in India is $0.74 for Android
  • Cost-per-install in India is $1.26 for iOS

According to Newzoo, the top 100 countries in the world by game revenue includes:

  • 1.7 billion gamers
  • $81.5 billion in revenue for 2014 this year
  • The US is the top country for game revenue in 2014 at $20.5 billion
  • Japan monetizes the most per person online at $120.20

I ran the numbers differently than they did. You can see the ranks of game revenue by country on the left, but I chose to look at it differently. I divided the revenue by the online population of each country. This gave me the RPPO (Revenue Per Person Online) – since I figure this is a good gauge of technology and that these people are also likely playing on mobile devices. Then I ran the ARPD (Average Revenue Per Day) based on that number divided by 365. It results in some interesting data.

For me, this is most interesting for geographic (soft) launches of mobile games. If we can look at how a game monetizes in specific country or two, we can make a more educated guess about how it might monetize given the propensity to spend per country. Of course it isn’t flawless, but it sure does give an interesting set of benchmarks to measure against. Here’s the full list.

RANK COUNTRY POP INTERNET POP REVENUE RPPO ARPD
3 Japan 126,999,808 101,663,346  $       12,219,552,000  $    120.20  $    0.3293
6 Korea 49,512,026 42,629,854  $         3,356,202,000  $      78.73  $    0.2157
1 USA 322,583,006 274,292,330  $       20,484,628,000  $      74.68  $    0.2046
5 United Kingdom 63,489,234 55,476,893  $         3,426,259,000  $      61.76  $    0.1692
13 Australia 23,630,169 20,806,364  $         1,143,044,000  $      54.94  $    0.1505
8 Canada 35,524,732 31,890,552  $         1,717,991,000  $      53.87  $    0.1476
4 Germany 82,652,256 71,080,940  $         3,528,196,000  $      49.64  $    0.1360
20 Switzerland 8,157,896 6,950,527  $            325,731,000  $      46.86  $    0.1284
7 France 64,641,279 56,237,913  $         2,608,818,000  $      46.39  $    0.1271
30 Ireland 4,677,340 3,899,031  $            179,576,000  $      46.06  $    0.1262
25 Norway 5,091,924 4,888,247  $            223,430,000  $      45.71  $    0.1252
21 Austria 8,526,429 7,111,042  $            310,340,000  $      43.64  $    0.1196
9 Italy 61,070,224 36,886,415  $         1,514,067,000  $      41.05  $    0.1125
19 Sweden 9,631,261 9,053,385  $            370,406,000  $      40.91  $    0.1121
88 Iceland 333,135 323,141  $              13,121,000  $      40.60  $    0.1112
71 Luxembourg 536,761 505,736  $              20,535,000  $      40.60  $    0.1112
26 Denmark 5,640,184 5,470,978  $            221,460,000  $      40.48  $    0.1109
29 Finland 5,443,497 5,096,746  $            205,745,000  $      40.37  $    0.1106
10 Spain 47,066,402 37,370,723  $         1,489,366,000  $      39.85  $    0.1092
34 New Zealand 4,551,349 4,164,939  $            140,004,000  $      33.61  $    0.0921
15 Taiwan 23,532,713 19,292,118  $            643,417,000  $      33.35  $    0.0914
97 Malta 430,146 307,812  $                9,872,000  $      32.07  $    0.0879
22 Belgium 11,144,420 9,807,090  $            293,560,000  $      29.93  $    0.0820
17 Netherlands 16,802,463 15,861,525  $            433,195,000  $      27.31  $    0.0748
27 Portugal 10,610,304 7,983,193  $            214,519,000  $      26.87  $    0.0736
2 China 1,393,783,836 701,073,270  $       17,866,677,000  $      25.48  $    0.0698
46 Singapore 5,517,102 4,378,372  $              81,606,000  $      18.64  $    0.0511
14 Mexico 123,799,215 56,130,564  $         1,006,072,000  $      17.92  $    0.0491
92 Cyprus 1,153,058 779,928  $              11,722,000  $      15.03  $    0.0412
67 Slovenia 2,075,592 1,494,426  $              21,206,000  $      14.19  $    0.0389
40 Czech Republic 10,740,468 8,491,414  $            117,774,000  $      13.87  $    0.0380
83 Estonia 1,283,771 1,078,368  $              14,508,000  $      13.45  $    0.0369
50 Hong Kong 7,259,569 5,372,081  $              70,797,000  $      13.18  $    0.0361
12 Russian 142,467,651 88,059,255  $         1,143,197,000  $      12.98  $    0.0356
53 Slovakia 5,454,154 4,830,199  $              60,760,000  $      12.58  $    0.0345
65 Qatar 2,267,916 2,084,215  $              25,549,000  $      12.26  $    0.0336
64 Lithuania 3,008,287 2,223,124  $              27,068,000  $      12.18  $    0.0334
49 Greece 11,128,404 6,899,610  $              79,699,000  $      11.55  $    0.0316
11 Brazil 202,033,670 118,593,764  $         1,339,375,000  $      11.29  $    0.0309
69 Panama 3,926,017 1,970,861  $              20,980,000  $      10.65  $    0.0292
48 Hungary 9,933,173 7,549,211  $              80,322,000  $      10.64  $    0.0292
23 Poland 38,220,543 26,372,175  $            279,656,000  $      10.60  $    0.0291
18 Turkey 75,837,020 37,349,732  $            375,039,000  $      10.04  $    0.0275
80 Latvia 2,041,111 1,605,130  $              15,915,000  $        9.92  $    0.0272
36 Chile 17,772,871 13,789,971  $            132,225,000  $        9.59  $    0.0263
63 Croatia 4,272,044 2,978,469  $              28,209,000  $        9.47  $    0.0259
55 Belarus 9,307,609 5,511,966  $              51,472,000  $        9.34  $    0.0256
38 Romania 21,640,168 13,196,174  $            122,354,000  $        9.27  $    0.0254
58 Bulgaria 7,167,998 4,548,095  $              41,977,000  $        9.23  $    0.0253
73 Uruguay 3,418,694 2,137,709  $              19,473,000  $        9.11  $    0.0250
24 Argentina 41,803,125 27,004,819  $            243,946,000  $        9.03  $    0.0247
86 TFYR Macedonia 2,108,434 1,572,892  $              13,238,000  $        8.42  $    0.0231
57 Serbia 9,468,378 5,586,343  $              46,297,000  $        8.29  $    0.0227
56 Israel 7,822,107 6,323,391  $              47,912,000  $        7.58  $    0.0208
33 Saudi Arabia 29,369,428 19,677,517  $            143,522,000  $        7.29  $    0.0200
99 Bahrain 1,344,111 1,236,582  $                8,872,000  $        7.17  $    0.0197
72 Costa Rica 4,937,755 2,876,736  $              20,216,000  $        7.03  $    0.0193
52 United Arab Emirates 9,445,624 8,973,343  $              62,819,000  $        7.00  $    0.0192
43 Peru 30,769,077 13,107,627  $              88,903,000  $        6.78  $    0.0186
82 Puerto Rico 3,683,601 2,144,961  $              14,535,000  $        6.78  $    0.0186
28 Colombia 48,929,706 31,589,018  $            209,041,000  $        6.62  $    0.0181
70 Oman 3,926,492 3,121,561  $              20,618,000  $        6.61  $    0.0181
74 Kuwait 3,479,371 2,963,728  $              18,644,000  $        6.29  $    0.0172
90 Albania 3,185,413 2,048,858  $              12,481,000  $        6.09  $    0.0167
39 Ukraine 44,941,303 19,630,361  $            118,604,000  $        6.04  $    0.0166
59 Ecuador 15,982,551 6,806,968  $              40,869,000  $        6.00  $    0.0164
42 Venezuela 30,851,343 15,953,229  $              89,000,000  $        5.58  $    0.0153
93 Libya 6,253,452 1,974,840  $              10,981,000  $        5.56  $    0.0152
81 Bosnia and Herzegovina 3,824,746 2,857,850  $              15,627,000  $        5.47  $    0.0150
60 Dominican Republic 10,528,954 6,089,947  $              33,063,000  $        5.43  $    0.0149
98 Jamaica 2,798,837 1,749,553  $                9,327,000  $        5.33  $    0.0146
78 Lebanon 4,965,914 3,749,265  $              16,933,000  $        4.52  $    0.0124
95 Paraguay 6,917,579 2,313,238  $              10,200,000  $        4.41  $    0.0121
96 El Salvador 6,383,752 2,470,512  $              10,043,000  $        4.07  $    0.0111
87 Cuba 11,258,597 3,429,369  $              13,208,000  $        3.85  $    0.0106
45 Malaysia 30,187,896 22,520,170  $              81,861,000  $        3.64  $    0.0100
91 Guatemala 15,859,714 3,711,173  $              12,433,000  $        3.35  $    0.0092
62 Kazakhstan 16,606,878 9,758,202  $              30,491,000  $        3.12  $    0.0086
44 South Africa 53,139,528 28,179,892  $              85,101,000  $        3.02  $    0.0083
84 Bolivia 10,847,664 4,617,851  $              13,622,000  $        2.95  $    0.0081
51 Thailand 67,222,972 21,578,574  $              63,628,000  $        2.95  $    0.0081
35 Vietnam 92,547,959 44,728,429  $            131,242,000  $        2.93  $    0.0080
76 Syrian Arab Republic 21,986,615 6,134,266  $              17,524,000  $        2.86  $    0.0078
47 Iran 78,470,222 28,249,280  $              80,384,000  $        2.85  $    0.0078
37 Egypt 83,386,739 43,819,731  $            122,434,000  $        2.79  $    0.0077
79 Azerbaijan 9,514,887 5,956,319  $              16,110,000  $        2.70  $    0.0074
54 Morocco 33,492,909 19,760,816  $              53,322,000  $        2.70  $    0.0074
32 Indonesia 252,812,245 54,405,195  $            146,684,000  $        2.70  $    0.0074
16 India 1,267,401,849 223,062,725  $            582,853,000  $        2.61  $    0.0072
85 Tunisia 11,116,899 5,127,114  $              13,302,000  $        2.59  $    0.0071
75 Algeria 39,928,947 7,063,431  $              17,836,000  $        2.53  $    0.0069
41 Philippines 100,096,496 48,526,781  $            115,611,000  $        2.38  $    0.0065
94 Angola 22,137,261 4,706,382  $              10,667,000  $        2.27  $    0.0062
31 Nigeria 178,516,904 74,584,362  $            152,824,000  $        2.05  $    0.0056
100 Sri Lanka 21,445,775 5,333,564  $                8,857,000  $        1.66  $    0.0045
66 Uzbekistan 29,324,920 14,416,131  $              21,900,000  $        1.52  $    0.0042
61 Pakistan 185,132,926 21,993,792  $              30,505,000  $        1.39  $    0.0038
89 Sudan 38,764,090 9,691,023  $              12,692,000  $        1.31  $    0.0036
77 Bangladesh 158,512,570 14,107,619  $              17,555,000  $        1.24  $    0.0034
68 Kenya 45,545,980 18,355,030  $              21,151,000  $        1.15  $    0.0032

Pearl Research recently released its Internet Cafes in Asia study. Key points include:

  • Revenues from Internet cafes in Asia will rise to more than $19 billion in 2011
  • There are now 350,000 Internet cafes across Asia.
  • Some of the larger Internet cafes have more than 200 PCs each and generate half a million dollars in sales per year
  • Cafes in India and Vietnam tend to have an average of 20 seats
  • Home PCs have 82% penetration in South Korea, but have little effect on the popularity of Internet cafes in the country

 

According to a report by Pyramid Research, Smartphones will capture 37% of the worldwide cell phone market by 2014. This is an increase of 16%in 2009.

  • China will capture the No. 1 position in 2010
  • Brazil will have a CAGR of 43% over the next five years
  • India will have a CAGR of 39% over the next five years
  • Turkey will have a CAGR of 37% over the next five years
  • Nigeria will have a CAGR of 34% over the next five years
  • Latin America will be the fastest growing region at a compound annual growth rate of 48%
  • Africa and the Middle East will have a 39% CAGR

Pyramid also forecasts sales of 1.8 billion smartphones over the next five years

According to a release from IDC, there were more than 450 million mobile Internet users worldwide in 2009, a number that is expected to more than double by the end of 2013. Here are the highlights from IDC’s Worldwide Digital Marketplace Model and Forecast”:

  • More than 1.6 billion people – a little over a quarter of the world’s population – used the Internet in 2009
  • By 2013, over 2.2 billion people – more than one third of the world’s population – is expected to be using the Internet
  • More than 1.6 billion devices worldwide were used to access the Internet in 2009, including PCs, mobile phones, and online videogame consoles
  • By 2013, the total number of devices accessing the Internet will increase to more than 2.7 billion
  • China continues to have more Internet users than any other country, with 359 million in 2009
  • The number of Internet users in China is expected to grow to 566 million by 2013
  • The United States had 261 million Internet users in 2009, a figure that will reach 280 million in 2013. India will have one of the fastest growing Internet populations, growing almost two-fold between 2009 and 2013.
  • The United States has far more total devices connected to the Internet than any other country
  • China is the leader in in the number of mobile online devices with almost 85 million mobile devices connected to the Internet in 2009
  • The number of Internet devices in India, both mobile and fixed, is expected to grow commensurate with the number of Internet users
  • Worldwide, more than 624 million Internet users will make online purchases in 2009, totaling nearly $8 trillion (both business to business and business to consumer)
  • By 2013, worldwide eCommerce transactions will be worth more than $16 trillion
  • Worldwide spending on Internet advertising will total nearly $61 billion in 2009, which is slightly more than 10% of all ad spending across all media
  • Worldwide spending on Internet advertising is expected to reach almost 15% of all ad spending across all media by 2013 as Internet ad spending grows surpasses $100 billion worldwide

In June, Gartner released their estimates on the worldwide market for wireless gaming revenue in 2008 and put their number at $4.5 Billion. Other points include:

  • Revenue will grow to $6.3 Billion by 2011
  • Revenue in 2007 was $3.9 billion (16.1 % growth rate)
  • 10.2% CAGR from 2007-2011
  • Asia-Pacific (including Japan) is the largest market for mobile gaming at $2.3 billion in 2008
  • Asia-Pacific Mobile Gaming should reach $3.4 billion by 2011
  • India is expected to lead Asian countries in mobile gaming revenue $80 Million in 2007
  • India should reach $450 million by 2012
  • Western Europe is projected to grow from $701 million in 2008 to $862 million by 2011.
  • North American market is projected to grow from $845 million to approximately $1.2 billion in 2011

Tuong Huy Nguyen is the principal analyst, and Madhusudan Gupta, is the senior analyst at Gartner covering the sector.