by The Social Gaming Market is estimated to be valued at US$ 31.61 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Social gaming refers to online games that allow players to connect with friends and family through social media platforms. Some popular social games include Scrabble, Words With Friends, Solitaire Together, and Farmville. Social gaming offers interactive and engaging experiences to players by allowing them to visit friends’ virtual farms or cities, send gifts, and participate in collaborative games and challenges. Many social games are free-to-play and generate revenue through in-app purchases and advertising.
Market Dynamics:
The growth of the social gaming market is driven by the rising popularity of hyper-casual games and increasing penetration of smartphones. Hyper-casual games refer to easy-to-learn mobile games that can be played for a few minutes. They are designed to attract new and casual gamers with their simplicity. The rising popularity of hyper-casual games is prompting social game developers to focus on creating more easy-to-play and simplistic game formats. Furthermore, the growing accessibility of high-speed internet and increasing smartphone penetration are encouraging more people to try social gaming apps on their mobile phones. It is estimated that over 95% of the world’s mobile games revenue comes from smartphone games. As people spend more time on their smartphones, social gaming offers an engaging entertainment option.
Segment Analysis
The social gaming market can be segmented based on genres into casual games, social casinos, social fighting games and other games. Among these, the casual games segment dominates the market with highest revenue share of over 45%. Casual games do not require extensive time commitment and have easy learning curves. These games have mass appeal and hence witness a huge fan following across both core and casual gamers.
PEST Analysis
Political: The laws and regulations regarding social gaming and gambling varies across countries and impact the market. Some countries have strict regulations while others have more lenient regulations.
Economic: The economic growth of developing nations is driving the demand for social gaming. Rising internet penetration and affordable smartphones are enabling more users to access online gaming platforms.
Social: Younger demographic prefers social gaming over console or PC gaming as it allows connecting with friends. Many games integrate social features like leaderboards and clan systems that drive engagement.
Technological: Advancements in mobile technologies, cloud gaming and 5G rollout will further fuel the market growth. Newer augmented reality and virtual reality based experiences are reshaping the social gaming landscape.
Key Takeaways
The Global Social Gaming Market Share is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing smartphone penetrartion and affordable internet. The market size for 2023 is estimated at US$ 31.61 Bn.
Regional analysis: Asia Pacific dominates the market with over 35% share led by countries like China and India. Presence of large gaming communities and tech-savvy youth propels the regional market. North America and Europe are other major markets whereas Latin America and MEA are emerging social gaming hotspots.
Key players: 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. Players are focusing on consolidating their market presence through acqusitions, partnerships and expanding in developing regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
