Market Overview:
Social gaming refers to online gaming that allows multiplayer interactions through social networking sites like Facebook or on online game portals. These games enable players to connect with friends, family members and others through social interactions. Users can play different types of games like puzzles, trivia games, action games, card games etc. through social networks and platforms. Social gaming enhances the overall gaming experience through social features.
Market key trends:
One of the key trends driving growth in the social gaming market is the rising popularity of mobile gaming. Smartphone adoption has grown significantly over the past few years. This has facilitated the growth of Social Gaming Market Share on mobile. Mobile gaming offers convenience as users can play anytime and anywhere on their smartphones. Mobile games are also easier to access and play compared to traditional games on consoles and PCs. Leading social gaming developers like Zynga have launched most of their games optimized for mobile play which has boosted the mobile gaming user base and revenues. This growing preference for mobile gaming among social network users is expected to drive significant growth in the social gaming market over the forecast period.
Porter’s Analysis
Threat of new entrants: New players find it difficult to enter the market due to high developmental and marketing costs required for establishing a successful social game.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and options.
Bargaining power of suppliers: Few technology companies that provide gaming engines and SDKs to developers hold high bargaining power.
Threat of new substitutes: Threat from new substitutes like hyper-casual games and e-sports is moderate as social games have dedicated user base.
Competitive rivalry: Intense rivalry exists among existing players.
SWOT Analysis
Strength: Wide range of genres available and strong intellectual properties for existing players. Growing mobile gaming audience.
Weakness: Sensitivity to platform changes by providers like Facebook. Short lifecycles of individual games.
Opportunity: Emerging markets and increasing internet/smartphone penetration provides new potential users. Scope for developing VR/AR based social games.
Threats: Stringent regulations around gambling/addictive monetization models. Shift of user attention towards e-sports or hyper-casual games.
Key Takeaways
The global social gaming market is expected to witness high growth, exhibiting CAGR of 16.1% over the forecast period, due to increasing internet and smartphone penetration worldwide. Regionally, Asia Pacific dominated the market in 2019 with a share of over 35%, with China and India being the major markets.
North America is expected to grow at a significant rate during the forecast period, majorly driven by the U.S, where mobile gaming audience is rising rapidly. Changes in platforms algorithms and policies by giants like Facebook remains a challenge for developers in the region.
Key players operating in the social gaming market are Zynga, Inc., Wooga GmbH, Playtika Ltd., King, Tencent Holdings Ltd., Electronic Arts, Inc., Renren Inc. , CrowdStar, Booyah Inc., and Social Point. Leading players are focused on developing exclusive IP’s and live operations to engage existing users and acquire new players. Mergers and acquisitions are also common in the industry to gain additional users and talents.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.