Mobile Gaming Market Estimated to Grow at an Exponential Rate Due...

Mobile Gaming Market Estimated to Grow at an Exponential Rate Due to the Surge in Downloads of Games During the COVID-19 Pandemic

Postado 2023-12-21 10:38:53

Mobile gaming refers to playing games on mobile devices such as smartphones and tablets. Over the past few years, the market has experienced exponential growth owing to advancements in technology and an increasing number of consumers spending more time playing games on their mobile devices. Mobile games can be downloaded through application stores and include a variety of genres like puzzles, action, adventure, strategy, and role-playing games. The growing popularity of eSports, represented by professional tournaments with large prize pools and millions of viewers watching online, has further accelerated the adoption of mobile gaming globally.

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 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers propelling the growth of the mobile gaming market is the surge in game downloads during the COVID-19 pandemic. With people practicing social distancing and lockdowns imposed globally, mobile gaming proved to be an engaging indoor activity and a mode of virtual interaction. This led to an exponential rise in game downloads and time spent on mobile games. According to data from Sensor Tower, global consumer spend on mobile games surged by 30% year-over-year in the first half of 2020 to approximately US$22.4 billion.

Another factor fueling the market growth is advancement in technology leading to enhanced graphics, interactive experiences, and immersive gameplay. Technologies such as augmented reality, virtual reality, 5G, and cloud gaming are enabling developers to offer more realistic and visually stimulating games. This is attracting more traditional gamers to the mobile platform, propelling market revenue.

SWOT Analysis

Strength: The mobile gaming market has grown rapidly due to growth in smartphone and 5G penetration. Mobile gamers can access games on their smartphones anytime and anywhere. Mobile games are also very cost effective compared to consoles or PC games as they are often free-to-play or offer in-app purchases.

Weakness: Lack of high-end graphics and processing capabilities of smartphones constrain the development of graphically intensive mobile games. Mobile gaming also faces risks of seasonality and short lifespan of games. Rapid technology changes impact the revenue potential of games over time.

Opportunity: Emerging technologies like augmented reality and virtual reality provide opportunities to enhance the gaming experience on mobile devices. 5G network rollouts will enable streaming of high-quality graphics intensive games on smartphones. Mobile eSports and cloud gaming will drive further growth in the coming years.

Threats: Rising development and marketing costs pose challenges for mobile game developers and publishers. Strict regulations around in-app purchases, loot boxes, and parental controls in some countries impact monetization of games. Piracy also threatens revenue generation for developers and publishers.

Key Takeaways

The Global Mobile Gaming Market Size is expected to witness high growth over the forecast period driven by increasing smartphone penetration worldwide. The Asia Pacific region currently dominates the mobile gaming market with countries like China and Japan having the highest mobile gaming revenues. Rapid adoption of 5G networks across Asia will further augment the mobile gaming market in the region.

Key players operating in the mobile gaming market are IKEA, Crate & Barrel, Wayfair, Amazon, Target, Walmart, AtHome, Ashley Furniture, Ethan Allen, Home Depot, Lowe’s, Bob’s Discount Furniture, Pier 1 Imports, Made.com. These companies develop and publish games across genres on both iOS and Android platforms. They also invest heavily in game development, esports, and live operations to expand user base and monetization.

The mobile gaming market in North America is growing steadily backed by rising incomes, internet penetration, and engagement of the millennial population in gaming. The US and Canada currently hold over 25% of global mobile gaming revenues due increasing adoption of smartphones with high computing power.