Mobile gaming has become one of the largest and fastest growing categories in the global gaming industry. Mobile games are games designed primarily for play on smartphones, tablet computers and other mobile devices. Mobile games allow players to play games across a variety of genres including action, adventure, arcade, puzzle, strategy, and role-playing games among others. These games are downloaded and played on mobile devices and attract a very large audience worldwide owing to their engaging and addictive content.
The global mobile gaming market is estimated to be valued at US$ 91.08 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The increasing penetration of smartphones globally is one of the major factors driving the growth of the mobile gaming market. According to data, over 6.3 billion people worldwide own a smartphone with penetration rates over 80% in many developed nations. Smartphones have become the #1 internet-connected device around the world and the growing popularity of mobile devices has provided game developers with a huge platform to release and market games to a massive audience. Additionally, improvements in network connectivity, processing power of mobile devices and graphics capabilities have enabled developers to design and launch realistic 3D graphics games on mobile. This has further increased the popularity of mobile gaming worldwide.
Market key trends:
One of the major trends driving the growth of the mobile gaming market is the shift towards free-to-play gaming model with in-app purchases. Previously, mobile games used to be primarily paid apps and game developers charged upfront for downloads. However, the free-to-play model has gained immense popularity in recent years as it provides easy access to a large audience and allows developers to monetize games through in-app purchases of virtual items, upgrades, subscription, and more. According to reports, the free-to-play model contributes over 70% of the total revenue generated in the global mobile gaming market. This model provides users with unlimited free gameplays but charges for optional virtual items and upgrades. It has boosted the commercial success of many games and encouraged new users to try out games without any upfront investment.
Porter’s Analysis
Threat of new entrants: The mobile gaming market has high entry barriers in terms of development costs, technology requirements and established consumer base of existing players which make it difficult for new players to enter the market and gain Consumer’s attention.
Bargaining power of buyers: Buyers have high bargaining power in the mobile gaming market due to presence of many options and games available on app stores. Buyers can easily switch from one game to another if not satisfied with quality or experience.
Bargaining power of suppliers: Majority of supplies are independent game developers or publishers with their own intellectual properties. Hence they have significant influence on pricing and royalties.
Threat of new substitutes: Threat of new substitutes is moderate as mobile gaming is dependent on latest smartphone technologies. New forms of mobile entertainment like Augmented Reality based games can emerge as potential substitutes.
Competitive rivalry: The global mobile gaming market is highly competitive with presence of many global as well as regional players. Players compete based on frequent release of new games, in-app purchases, tied up with popular IPs and franchises.
Key Takeaways
The Global Mobile Gaming Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global mobile gaming market is estimated to be valued at US$ 91.08 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030.
Regional analysis
APAC is projected to maintain its dominance in global mobile gaming market during forecast period. China and India are expected to be fastest growing market owing to emergence of affordable smartphones, dedicated gaming devices and popularity of multiplayer online games. Japan and South Korea are also prominent mobile gaming markets in APAC due to high literacy in use of latest technologies.
Key players
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. Market leader like Tencent and NetEase in APAC region have advantage of developing games relevant to local cultures and tastes.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it