February 24, 2024
Mobile Gaming Market

The rising popularity of Augmented Reality (AR) technology is anticipated to open up new avenues for the Mobile Gaming Market

Market Overview:

Mobile games refer to games that are played on mobile devices such as smartphones and tablets. They include genres like action, adventure, role-playing, strategy, and puzzle games. With the high adoption of smartphones globally, the mobile gaming market is gaining high traction. Most mobile games are free to download and play but offer in-app purchases and paid subscriptions to unlock additional content.

The mobile gaming market is estimated to be valued at US$ 91.08 Bn in 2023 and is expected to exhibit a CAGR of 10.39% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growing internet penetration worldwide and increasing smartphone adoption are the major drivers responsible for the growth of the mobile gaming market. According to data by the World Bank, internet penetration rates increased from 31.2% in 2013 to 51.2% in 2019 globally. In addition, smartphone adoption has increased significantly over the past decade. For instance, smartphone penetration in the US increased from 35% in 2011 to 77% in 2019. This high internet and smartphone adoption provides a strong platform for the mobile gaming market growth. Moreover, the introduction of 5G technologies is expected to fuel the market as 5G will enable seamless multiplayer mobile gaming experiences with high-speed internet connectivity and reduced latency issues. However, piracy and lack of standardization are the major challenges hampering the market growth.

Segment Analysis

The global mobile gaming market is dominated by action games segment. Action games account for more than 30% of the total mobile gaming market revenue. The increasing popularity of games like PUBG and Fortnite has led to the rapid growth of action games segment. These games offer an intense multiplayer experience to gamers and can be played online with other players, making them highly engaging and entertaining.

PEST Analysis

Political: The mobile gaming industry faces minimal regulations from governments worldwide. However, some countries have imposed certain age restrictions on gaming content and real money transactions.
Economic: Growing penetration of smartphones and high-speed internet has provided a boost to the mobile gaming industry. Rising disposable income levels have also increased people’s spending on gaming apps and in-game purchases.
Social: Digitalization and changing lifestyles have enhanced popularity of mobile games among all age groups. Social and multiplayer games especially attract high engagement as they allow interaction with other gamers online.
Technological: Continuous innovation in areas of augmented reality, virtual reality and 5G networks will further augment the mobile gaming experience. Advancements such as cloud gaming will allow high-graphics games on mobile phones.

Key Takeaways

The Global Mobile Gaming Market Size is expected to witness high growth at a CAGR of 10% over the forecast period of 2023 to 2030. The market size is estimated to reach US$ 163.42 Bn by 2030 from US$ 91.08 Bn in 2023. The growth can be attributed to increasing penetration of smartphones and availability of high-speed internet across the world.

Regionally, Asia Pacific captured over 45% share of the global mobile gaming market revenue in 2023 led by countries like China, Japan and India. The region is expected to continue dominating due to rising internet and smartphone usage. Countries in Southeast Asia are expected to be new hotspots and present lucrative opportunities.

Key players operating in the mobile gaming market are Activision Blizzard, Inc., Electronic Arts, Inc., Gameloft SE, Niantic Inc., Glu Mobile, Inc., GungHo Online Entertainment, Inc., Kabam, Rovio Entertainment Corporation, Supercell Oy, The Walt Disney Company, and Zynga, Inc. The companies are focusing on new game launches and live operation of existing titles to engage users for longer duration and increase in-game spending. Partnerships and acquisitions are other strategies being adopted for business expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it