The mobile gaming market is expected to grow at a compound annual growth rate of 23.59% over the forecast period to reach a market size of US$420.386 billion in 2026 from US$95.448 billion in 2019.
The gaming industry worldwide is expanding, and the smartphone is playing a significant role in this expansion. The development of mobile games has resulted in scalability for the gaming industry. Platforms, like Facebook and Instagram, have also started to develop innovative mobile games, to ensure high product differentiation and benefit from engaging games to enhance their advertisement strategies. The total hours spent on games continue to grow by nearly 8-10% year-over-year. According to App Annie data, by 2020, mobile ad spending will cross USD 240 billion globally. The users are expected to spend 674 billion hours in the entertainment and video player and editor categories worldwide on Android phones, by 2020.
Despite geopolitical tensions, the growing smartphone penetration and increasing gaming options are also growing mobile gaming penetration in many parts of the world. For instance, in Iran, with a population of 82 million and a smartphone penetration rate of about 35% in 2018, there are more than 30 million active mobile gaming players in the country, according to White Designers Game Studios. Trends, such as location-based games, cloud gaming, blockchain-based game, AR/VR-enabled mobile games, are also fueling the demand for mobile games. However, AR-based games are more preferred on mobile as compared to VR-based. Moreover, the declining cost of internet data packs, especially in the emerging economies, is also fueling the demand for online mobile games. Asia-Pacific is emerging as the major contributor to the growth of the global mobile gaming industry, as most of the companies in the region are producing innovative formats. For instance, in 2018, mobile gaming represented 55-60% of video game revenue in China compared to 35-40% in the United States.
The increasing smartphone penetration, rapidly changing consumer preferences, increasing competition, and untapped demographics are major factors driving the gaming companies to invest in the Indian mobile gaming market.?
Free-to-play is the pricing model that is preferred by most mobile game developers because of its unlimited potential and can be downloaded without any charge. This allows players to sample a game before deciding whether they want to commit time or money, and tend to accrue higher revenues. The free-to-play model in the online gaming industry is based on providing an online game at no charge on either mobile devices or on a PC. Monetization would occur with virtual items which players may purchase during the game. It has been demonstrated that there are several motivations for gamers to purchase such items including unobstructed play, social interactions with other gamers, competition, and economic rationale. These motivations can be exploited as drivers for value generation when designing such games in a way that appeals to the gamers by using several strategies. We elaborate on seven strategies, i.e. stratified content, inconvenient gameplay elements, mediums of exchange, inventory mechanics, special occasions, artificial scarcity, and alterations of content. Additionally, the theory of customer lifetime value has shown to be a beneficial concept in segmenting customers and identifying those who are especially valuable from a business perspective. Overall, research on business value generation in the field of online gaming seems less developed than in other segments and applications. Consequently, a common understanding of available concepts and strategies needs to be developed to enable the identification and overcoming of challenges in free-to-play online gaming.
The COVID-19 pandemic is expected to further boost mobile gaming’s market growth considering the huge influx of people turning towards gaming as a way to communicate and make friends with people from around the world amid staying at home due to lockdowns imposed because of the pandemic.
The increasing demand for mobile gaming has led to the entry of several new players in the mobile gaming market. Now, to increase their clientele as well as increase their market share in the upcoming years, many of these market players have taken various strategic actions like partnerships and the development of novel solutions, which is expected to keep the market competitive and constantly evolving. Major market players like EA, Gameloft, and Activision Blizzard have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the mobile gaming market.
|Market size value in 2019||US$95.448 billion|
|Market size value in 2026||US$420.386 billion|
|Growth Rate||CAGR of 23.59% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Device Type, Genre, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Tencent Holdings Limited, Activision Blizzard, Inc, Electronic Arts Inc., Nintendo Co., Ltd., GungHo Online Entertainment, Inc (SoftBank Group), Gameloft, The Walt Disney Company, Glu Mobile Inc., Rovio Entertainment Corporation, Supercell Oy|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the mobile gaming market?
A1. The global mobile gaming market is expected to grow at a CAGR of 23.59% over the forecast period.
Q2. What will be the mobile gaming market size by 2026?
A2. The mobile gaming market is expected to reach a total market size of US$420.386 billion in 2026.
Q3. What is the size of the global mobile gaming market?
A3. Mobile Gaming Market was valued at US$95.448 billion in 2019.
Q4. Which region holds the maximum market share of the mobile gaming market?
A4. Asia-Pacific is emerging as the major contributor to the growth of the global mobile gaming industry, as most of the companies in the region are producing innovative formats.
Q5. What factors are anticipated to drive the mobile gaming market growth?
A5. The increasing smartphone penetration, rapidly changing consumer preferences, increasing competition, and untapped demographics are major factors driving the mobile gaming market growth.