|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The mobile gaming market is expected to register a CAGR of 12.6% during the forecast period, 2021 - 2026. The growing smartphone penetration and technology advancement with the increasing adoption of trending technologies for developing games are major factors in developing the mobile gaming industry.
- The growing smartphone penetration and technology advancement with the increasing adoption of trending technologies for developing games are major factors in developing the mobile gaming industry.
- The gaming industry worldwide is expanding, and 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.
- Many governments around the globe are also establishing funds to support the local gaming industry, which is also expected to develop space for mobile games. For instance, in 2019, the German government allocated EUR 50 million for the creation of a games fund. The Sweden Game Arena in Sweden is a public-private partnership that helps students develop games using government-funded offices and equipment.
- In-game purchase, i.e., the option to purchase additional privileges within the games, is a significant revenue-generating channel for the mobile gaming industry. The flexibility for in-game payment methods is also facilitating the growth of mobile gaming revenues worldwide.
- Despite geopolitical tensions, the growing smartphone penetration and increasing gaming options are also increasing the mobile gaming penetration in many parts of the world. For instance, according to White Designers Game Studios, 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.
- As most countries globally are under lockdown to control the spread of the virus, there has been significant growth in the consumption of digital entertainment, including mobile games. The major gaming vendors have witnessed strong growth in downloads of multiple types of mobile games in the COVID-19 affected markets.
Scope of the Report
Gaming is defined as playing electronic games conducted through multiple varieties of means, such as through the use of computers, mobile phones, consoles, or another medium altogether. There is an increasing prevalence of high-speed internet connections, especially in emerging economies, which has made online gaming practical for more people in recent years.
|Other Third-party Stores (Third-party Android App Stores such as Amazon Appstore, Samsung Galaxy Store, Garena, and All Existing Android App Stores in China where Google Play is Not Available)|
|Rest of the World|
Key Market Trends
Free-to-play Pricing Model Offers Potential Growth
- Free-to-play is the pricing model 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.
- Games such as Pokémon GO are following a free-to-play game model, and according to Bank of America, in the United States in 2016, 27 million users were playing this. It is estimated to cross 67 million by 2020. Moreover, in the Asia-Pacific region, the number of players is set to expand from 84 million to 311 million in the same timeframe. Therefore, the increasing number of users is expected to have a positive outlook on the market.
- Further, Hyper Casual games mostly monetize through advertising and captured more than half of all gaming app downloads by 2017. Seeing the future in such games, Zynga acquired Gram Games for USD 250 million in 2018, and in the same year, Goldman Sachs also invested USD 200 million in Voodoo.
- Moreover, this model is expected to evolve with the development of technologies such as augmented reality and 5G. With the deployment of 5G, coupled with faster download speeds, it is expected by the advertising videos to increase in quality and engagement.
- For instance, in April 2019, Hatch, together with Samsung, launched 5G cloud gaming in the United States with the Hatch for Samsung app launch. With Samsung’s first flagship 5G phone, the Galaxy S10 5G, customers were able to play popular games like Hitman GO, Monument Valley, and Arkanoid Rising instantly over streaming.
- Therefore, due to the factors mentioned above, the free-to-play pricing model is expected to drive mobile gaming in the future.
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Asia-Pacific to Witness the Highest Growth
- 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.
- India is one of the fastest-growing smartphone markets globally, with the number of smartphones expected to double by 2022 nearly. Much of this active user base comes from rural India, where mobile gaming is still gaining popularity.
- Online gaming is also fueling smartphone games' penetration, with more than 90% of millennials preferring smartphones over gaming PCs and other devices in India. This is motivating many vendors to launch new technologies that enable mobile games to gain a competitive advantage in the country. In July 2019, the Indian Air Force launched a new mobile 3D video game themed on various aerial combats and missions, including airstrikes.
- According to Google, more than 60% of India's online gamers are in the 18-24 age group. Young users play online games on their smartphones, leading to a surge in gaming apps downloads. The company also estimates that there will be 310 million online gamers in India by 2021, mainly due to ease of access to gaming payment options and the high occurrence of smartphone use.
- Due to affordable gaming experience, India is now in the top five markets in the world based on the number of users for online and mobile gaming. According to NASSCOM data estimates, the Indian mobile gaming market will reach 628 million users by 2020. However, this number is expected to increase due to the positive impact resulting from coronavirus.
- As per AppsFlyer's report released in April 2020, India has been experiencing a gradual increase in in-game app installs and sessions since March 7, when the number of reported COVID-19 cases in the country started to climb. User sessions were reported to have increased by 65% and organic installs by 50% in April 2020.
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The mobile gaming market is competitive in nature because of the presence of major players like Tencent Holdings Limited, Activision Blizzard, Inc, and Zynga, Inc., among others. Major companies are developing advanced technologies and launching new products to stay competitive in the market. Seeing the growth opportunity in the market, companies are entering the market. For example, in India, the number of game-developing companies grew from 25 in 2010 to over 250 in 2018. Some of the recent developments in the market are:
- May 2021- NetEase announced the launch of new games for their diverse portfolio of mobile as well as a personal computer and also contains updates for over 60 products at its Seventh Annual Product Launch.
- August 2021- Netflix began testing its games inside their android app for their members in Poland. The paying subscribers will try out two games, "Stranger Things: 1984" and "Stranger Things 3".
- July 2021- Gamestacy announced its partnership with Beamable to launch Influenzer , a unique social, Multiplayer mobile game. This soft launch is anticipated to usher new options for gender-specific games in the rapidly growing mobile games market.
- May 2021- OnMobile Global Limited, the global leader in mobile entertainment, has launched a new B2B gaming product, Challenges Arena, a single destination of everyday challenges that provides an unparalleled gamified experience.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Impact of COVID-19 on the Mobile Gaming Market
4.5 Market Drivers
4.5.1 Increasing Smartphone Penetration
4.5.2 Growth in Cloud Adoption
4.6 Market Restraints
4.6.1 User Privacy and Security Issues Along with Government Regulations
5. MOBILE GAMING MARKET TRENDS
5.1 Cloud Gaming
5.2 Augment Reality Gaming
5.3 Cross Platform Pay
5.4 Blockchain Based Game
5.5 Casual Games
5.6 Multiplayer Mobile Players
6. KEY MONETIZATIONS METHODS
6.1 In-games Awards
6.2 Rewarded Adds/Videos
6.3 In App Purchase ( Various Elements like Coins, Diamonds, Energy Boosters, etc.)
6.4 Paid Games
7. PROMOTION METHODS FOR MOBILE GAMES
7.1 Pre-registration Campaigns
7.2 Create Promotional Videos
7.3 Start with Cross-Promotion with Other Games
7.5 KPI-Based Mobile Ads
8. MARKET SEGMENTATION
8.1.3 Other Third-party Stores (Third-party Android App Stores such as Amazon Appstore, Samsung Galaxy Store, Garena, and All Existing Android App Stores in China where Google Play is Not Available)
8.2.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
8.2.3 Asia Pacific
22.214.171.124 South Korea
126.96.36.199 Rest of Asia Pacific
8.2.4 Rest of the World
9. COMPETITIVE LANDSCAPE
9.1 Company Profiles*
9.1.1 Tencent Holdings Limited
9.1.2 Nintendo Co. Ltd
9.1.3 Activision Blizzard Inc.
9.1.4 Zynga Inc.
9.1.5 GungHo Online Entertainment Inc. ( SoftBank Group)
9.1.6 Electronic Arts Inc.
9.1.7 Kabam Games Inc.
9.1.8 Rovio Entertainment Corporation
9.1.9 Games Inc. (Take-two Interactive)
9.1.10 NetEase Inc.
10. INVESTMENT ANALYSIS
11. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Mobile Gaming Market market is studied from 2019 - 2026.
What is the growth rate of Mobile Gaming Market?
The Mobile Gaming Market is growing at a CAGR of 12.6% over the next 5 years.
Which region has highest growth rate in Mobile Gaming Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Mobile Gaming Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Mobile Gaming Market?
Tencent Holdings Limited, Activision Blizzard, Inc, Electronic Arts Inc., Nintendo Co., Ltd., GungHo Online Entertainment, Inc ( SoftBank Group) are the major companies operating in Mobile Gaming Market.