Category

Mobile Gaming Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Device Type (Smartphone, Smartwatch, PDA, Tablet, Others), By Genre (Action And Adventure, Arcade, Role-playing, Sports, Others), And By Geography - Forecasts From 2021 To 2026

Published: Aug 2021 | Report Code:  KSI061610536 | Pages:  114

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.

Introduction.

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.

Market Trends.

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.?

Growth Factors.

  • Rise of the Free-to-play Pricing Model.

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.

Impact of COVID-19 on the Mobile Gaming Market

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.

Competitive Insights.

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.

Key Developments.

  • January 2020 - China-based ByteDance has built a gaming division to enter into hardcore or non-casual games. This will help in developing a recurring revenue stream for the company. The company is building multiple game studios by acquiring experienced game developers and talent.
  • July 2020 - Sentons teamed up with Lenovo, Asus, and Tencent to create gaming smartphones with virtual buttons, which use controllers that sense gestures such as presses, swipes, and taps. Thus, Tencent and Asus created the Rog Phone 3 using Sentons’ tech.
  • August 2019 - Tencent Cloud released a cloud gaming solution at ChinaJoy. The solution is expected to providing a one-stop Cloud Gaming Solution for game developers and platforms, helping them to gradually decreasing the development times of cloud-based mobile games.

Mobile Gaming Market Scope:

Report Metric Details
 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
 Base year  2019
 Forecast period  2021–2026
 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

 

Segmentation:

  • By Device Type
    • Smartphone
    • Smartwatch
    • PDA
    • Tablet
    • Others
  • By Genre
    • Action and Adventure
    • Arcade
    • Roleplaying
    • Sports
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • Italy
      • Spain
      • Others
    • Middle East and Africa
      • Israel
      • Saudi Arabia
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • Australia
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

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.

Explore custom options available with this study:

  • Request customization

  • Buy sections of the study

  • Buy country specific report

  • Request excel, Historical data

  • Subscription inquiry

  • Request special pricing

Our Value Proposition

Analyst Support

All our studies come with 2 months of analyst support.

Confidentiality

We are in compliance with the global privacy laws.

OUR CLIENTS