Market Trends of Mobile Gaming Industry
Increasing Smartphone Penetration is Expected to Drive the Market Growth
- Increasing smartphone penetration has a significant impact on the mobile gaming market. Smartphones offer a convenient and accessible gaming platform. With improved hardware capabilities and advanced graphics, smartphones can provide a rich gaming experience. This accessibility makes mobile gaming appealing to a broader audience, including casual gamers who may not invest in dedicated gaming consoles or PCs.
- The widespread availability of app stores, such as the Google Play Store and Apple App Store, makes it easier for developers to distribute and monetize their mobile games. With millions of smartphones connected to these app stores, developers can reach a vast user base and generate revenue through in-app purchases and advertisements.
- Smartphones enable social connectivity, allowing users to engage in multiplayer gaming experiences with friends and other players worldwide. This social aspect of mobile gaming enhances the overall experience and encourages user engagement, further driving market growth.
- Smartphone technology continues to evolve, improving processing power, graphics capabilities, and virtual reality (VR) integration. These advancements enable developers to create more immersive and sophisticated mobile games, attracting a larger audience and driving market growth.
- According to Cisco, Globally, the total number of mobile subscribers (those who use cellular services) is expected to rise from 5.1 billion in 2018 to 5.7 billion by the end of 2023, at a CAGR of 2 percent. In terms of population, it accounted for 66 percent of the global population in 2018 and 71 percent of global population penetration by 2023. As smartphone ownership continues to rise globally, the demand for mobile games is expected to increase, creating new opportunities for game developers, publishers, and other stakeholders in the industry.
- The release of high-speed 5G and unlimited data plans is also expected to be a critical factor toward the success of cloud gaming worldwide, as most gamers prefer games on their smartphones. The increasing services, development, and investment in 5G infrastructure are essential to this success. According to Ericsson, 5G mobile subscriptions in the Asia Pacific region will reach around 1,545 million by 2025.
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North America is Expected to Hold Significant Market Share
- The mobile gaming market in North America is one of the largest and most lucrative in the world. North America is a significant contributor to the global mobile gaming market. The region has a large population of smartphone users, and mobile games have gained immense popularity across various age groups. High smartphone penetration, favorable economic conditions, and a strong gaming culture drive the market size in North America.
- According to Ericsson, 5G connectivity is expected to drive the growth of the North American gaming market in the coming years, as the newer mobile technology with higher data speeds, ultra-low latency, and increased availability, among other benefits. 5G subscriptions are forecast to increase drastically in North America from 2019 to 2027, from over 1.07 million to around 399.99 million subscriptions. The region has the highest adoption rate of smart devices. As smart devices, especially smartphones, play a significant role in the development of the market, the region offers a huge opportunity for the growth of the market studied over the forecast period.
- The North America mobile gaming market is highly competitive, with both established players and indie developers vying for market share. Major gaming companies like Electronic Arts, Activision Blizzard, and Zynga have a strong regional presence. Additionally, there is a thriving indie game development scene, with numerous innovative and successful titles emerging from the region.
- This region is known for its diverse gaming platforms. While smartphones are the dominant platform for mobile gaming, other platforms like tablets and handheld gaming devices also contribute to the market. Moreover, the region has witnessed an increasing trend of cloud gaming services, allowing users to stream and play games on their mobile devices.
- In July 2022, Nuvei Corporation, the future's payments platform, and GAN Limited announced a strategic partnership to enable gaming operators to access Nuvi's full suite of payment solutions by integrating GAN's software-as-a-service gaming platform technology. The collaboration began with the opening of Ontario's regulated gaming market earlier this year and is now being expanded to assist operators across the United States and Canada.
- The North America mobile gaming market encompasses various game genres, including casual games, strategy games, role-playing games (RPGs), and multiplayer online battle arena (MOBA) games. The market has also witnessed the emergence of augmented reality (AR) and virtual reality (VR) games, providing immersive gaming experiences.
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