India In-App Purchase Market

India In-App Purchase Market Overview:

The India in-app purchase market size reached USD 5.40 Billion in ​2024​. Looking forward, IMARC Group expects the market to reach USD 17.99 Billion by 2033, exhibiting a growth rate (CAGR) of 14.20% during ​2025-2033​. The market is expanding due to rising smartphone penetration, digital payments, and mobile gaming adoption. The market growth is further driven by subscription-based models, virtual goods, and premium content across apps, with fintech innovations and regulatory developments influencing market dynamics.

India In-App Purchase Market Trends:

Rising Adoption of Subscription-Based In-App Purchases

The in-app purchase market of India is witnessing tremendous growth in subscription-based models for entertainment, gaming, and productivity applications. There is a general shift of mobile apps from one-time purchase to subscription models, which would enable customers to avail of options for high-end features, an ad-free experience, and exclusive content. Streaming platforms such as video-on-demand and music services are driving this trend, as consumers seek uninterrupted access to high-quality content. Additionally, gaming apps are leveraging subscription tiers to offer in-game advantages, including exclusive characters, virtual currency, and customization options. This model benefits developers by ensuring stable revenue streams and higher customer retention. The adoption of localized pricing strategies, regional payment methods, and promotional discounts further encourages users to opt for long-term subscriptions. As smartphone penetration and digital payment adoption increase in India, subscription-based in-app purchases are expected to dominate the market, driving sustained revenue growth for app developers across various industry segments. For instance, as per industry reports, in Q3 2024, smartphone segment across India has established itself as the second largest globally, in terms of unit volume. During this time period, India accounted for 15.5% of the shipments for smartphones worldwide.

Growing Influence of Microtransactions in Mobile Gaming

Microtransactions are emerging as a key driver in India's in-app purchase market, particularly within the mobile gaming sector. Free-to-play (F2P) games intensely depend on in-app purchases, enabling users to buy virtual goods, character upgrades, and bonus content. With the increasing popularity of battle royale and multiplayer games, demand for cosmetic enhancements, weapon skins, and loot boxes is surging. Developers strategically implement time-limited offers, reward-based systems, and in-game economies to enhance user engagement and encourage spending. The growing preference for localized pricing, UPI-based transactions, and digital wallets is making microtransactions more accessible to Indian consumers. For instance, as per industry reports, UPI's share in digital payments doubled in five years across India, reaching 83% in the year 2024, with the country recording 208.5 Billion transactions of digital payment in the same year. Additionally, regulatory measures promoting responsible spending and transparency in virtual item pricing are influencing market dynamics. As the Indian gaming community expands and mobile game monetization strategies evolve, microtransactions will remain a dominant force, shaping the future of in-app revenue models across gaming and interactive content platforms.

India In-App Purchase Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, operating system, and app category.

Type Insights:

• Consumable
• Non-Consumable
• Subscription

The report has provided a detailed breakup and analysis of the market based on the type. This includes consumable, non-consumable, and subscription.

Operating System Insights:

• Android
• iOS
• Others

A detailed breakup and analysis of the market based on the operating system have also been provided in the report. This includes android, iOS, and others

App Category Insights:

• Gaming
• Entertainment and Music
• Health and Fitness
• Travel and Hospitality
• Retail and E-Commerce
• Education and Learning
• Others

A detailed breakup and analysis of the market based on the app category have also been provided in the report. This includes gaming, entertainment and music, health and fitness, travel and hospitality, retail and e-commerce, and education and learning, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India In-App Purchase Market News:

• In May 2024, Google announced addition of a new payment choice regarding the in-app purchases leveraging Play Store, enabling customers to 'ask someone else to pay', with this feature initiating to be implemented across India.
• In January 2024, Netflix, a streaming giant with services available in India, announced plans to tactically monetize its game services by enabling in-app purchases, charging users for premium-quality titles.

India In-App Purchase Market Report Coverage:

Key Questions Answered in This Report:

• How has the India in-app purchase market performed so far and how will it perform in the coming years?
• What is the breakup of the India in-app purchase market on the basis of type?
• What is the breakup of the India in-app purchase market on the basis of operating system?
• What is the breakup of the India in-app purchase market on the basis of app category?
• What is the breakup of the India in-app purchase market on the basis of region?
• What are the various stages in the value chain of the India in-app purchase market? 
• What are the key driving factors and challenges in the India in-app purchase market?
• What is the structure of the India in-app purchase market and who are the key players?
• What is the degree of competition in the India in-app purchase market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India in-app purchase market from 2019-2033​.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India in-app purchase market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India in-app purchase industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.