Mobile Gaming Market

Market Overview:

The global mobile gaming market size reached US$ 91.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 201.6 Billion by 2032, exhibiting a growth rate (CAGR) of 9% during 2024-2032. The emerging technological advancements, enhancing gaming experiences with immersive graphics, increasing the proliferation of smartphones and tablets, and incorporation of all freemium and inner purchases model success offering diverse revenue streams are some of the factors propelling the market growth.

Mobile Gaming Market Analysis:

• Major Market Drivers: The widespread adoption of smartphones and improved mobile technology which makes high-quality games accessible to a vast audience, represents the major driver of the mobile gaming market. Free-to-play business models, supported by in-app purchases and advertising, attract and retain users. The market also benefits from social integration features, promoting viral game growth through social networks.
• Key Market Trends: The rise of hyper-casual games that offer simple, quick gameplay attracting broad demographics represents the key trends in the market. Cloud gaming is gaining traction, allowing high-quality games to be streamed to mobile devices without needing high-end hardware. Augmented reality (AR) games continue to grow, blending digital gameplay with the real world which is influencing the market growth.
• Geographical Trends: Asia Pacific accounted for the largest region in the mobile gaming market outlook. The high smartphone penetration and the strong mobile infrastructure are driving the market growth in the region. The cultural popularity of gaming especially in countries like Japan and South Korea is fueling the demand for mobile gaming in the region.
• Competitive Landscape: Some of the major market players in the mobile gaming industry include Activision Blizzard Inc., Electronic Arts Inc., Gameloft SE (Vivendi SE), GungHo Online Entertainment Inc., Kabam Games Inc, Nintendo Co. Ltd, Rovio Entertainment Oyj, Supercell Oy (Tencent Holdings Ltd), Take-Two Interactive Software Inc., Ubisoft Entertainment SA, among many others.
• Challenges and Opportunities: The market faces various challenges like the overwhelming number of games making visibility and user retention difficult. However, the market also faces several opportunities such as expansion into emerging markets with increasing mobile connectivity and technological advancements like AR, VR, and cloud gaming, along with the rising esports and social gaming platforms.
   

Mobile Gaming Market Trends:

The proliferation of smartphones and tablets

The rapid proliferation of smartphones and tablets transformed the mobile gaming market. The easy accessibility of mobile phones among individuals equipped with advanced hardware components, including high-resolution displays, multi-core processors, and dedicated GPUs is contributing to the market growth. According to the Consumer Affairs Journal of Consumer Research, almost all Americans (97%) own a mobile phone. This translates to 330.8 million people. About nine out of 10 Americans own a smartphone. Each day Americans spend 4 hours and 30 minutes on their mobile phones and check their phone 144 times per day. Nearly 57% of Americans consider themselves ‘mobile phone addicts’. Over half (59.5%) of the world’s internet traffic comes from mobile phones. This is further driving the mobile gaming market statistics.

The emerging technological advancements

The continuous evolution of technological advancements is influencing mobile gaming into new realms of immersion and engagement. For instance, in October 2023, Electronic Arts EA unveiled EA Sports FC Tactical, a new mobile game, that offers interactive simulation, strategic turn-based gameplay, and a roster of more than 5000 real players from prominent leagues like the Premier League, LALIGA EA SPORTS, Bundesliga, Ligue 1 and Serie A. Similarly, in April 2024, the National Football League, NFL Players Association (NFLPA), and 2K launched NFL 2K Playmakers, a new non-simulation tactile card battler mobile game for iOS and Android devices developed by Cat Daddy Games. This is likely to boost the mobile gaming market forecast over the coming years.

The incorporation of freemium and in-app purchases

The freemium model offers games for free while generating revenue through in-app purchases. Developers, in turn, generate revenue by offering in-game items, power-ups, customization options, or advanced features for purchase within the game. The model encourages extended player engagement, as developers continuously provide updates and content to maintain interest. According to the Business of Apps, in-app purchases are one of the most common monetization models. An estimated 50% of non-game and 79% of game apps use it. In-app purchases account for 48.2% of mobile app earnings as compared to 14% from ads-based revenue and 37.8% from paid app downloads. Users are spending $380 billion worldwide on in-app purchases. This is fueling the mobile gaming market revenue.

Mobile Gaming Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global mobile gaming market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on type, device type, platform and business model.

Breakup by Type:

• Action or Adventure
• Casino
• Sports and Role Playing
• Strategy and Brain
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes action or adventure, casino, sports and role-playing, strategy, and brain.

Action and adventure games offer intense gameplay experiences that often involve combat, exploration, and dynamic storytelling. These games encompass a variety of genres, from platformers to open-world adventures, providing players with adrenaline-pumping challenges and immersive narratives. Moreover, casino games have a strong foothold in the market, replicating the excitement of traditional casino games including slot machines, poker, blackjack, and roulette. They capitalize on the convenience of mobile devices, allowing players to experience the thrill of gambling from the palm of their hands.

Besides this, the growing popularity of sports and role-playing games (RPGs) is accelerating market growth. Additionally, sports games such as football, basketball, racing, and tennis, offer quick matches and intuitive controls, making them accessible to a wide audience, contributing to the market growth. Along with this, role-playing games (RPGs) immerse players in intricate narratives, character development, and strategic gameplay, allowing them to explore fantasy worlds and engage in epic quests, thus propelling market growth.

Furthermore, strategy and brain games challenge players' tactical thinking and decision-making skills often involving resource management, base building, and strategic planning, focusing on enhancing cognitive abilities through puzzles, quizzes, and memory exercises, thus creating a positive market outlook.

Breakup by Device Type:

• Smartphone
• Smartwatch
• PDA
• Tablet
• Others
   

Smartphones represent the most popular device type

The report has provided a detailed breakup and analysis of the market based on the device type. This includes smartphone, smartwatch, PDA, tablet, and others. According to the report, smartphones accounted for the largest market share.

The widespread adoption of smartphones is reshaping the way games are accessed, played, and enjoyed, thus contributing to market growth. Additionally, the rising disposable income and easy accessibility to smartphones offering versatility and convenience are augmenting the market growth. These pocket-sized powerhouses combine robust processing capabilities, high-resolution displays, and touch-screen interfaces to deliver immersive gaming encounters.

Moreover, smartphones are democratizing gaming, erasing traditional barriers to entry with their portable nature that allows gaming on-the-go and enables users to indulge in quick gaming sessions during commutes, breaks, or downtime representing another major growth-inducing factor. The intuitive touch controls and gyroscopic sensors introduce innovative ways of interacting with games, making them accessible to a wide audience beyond traditional gamers.

Furthermore, the app store ecosystem integrated into smartphones is streamlining game discovery and download, fostering a seamless user experience. Developers can tap into this ecosystem to swiftly distribute and update their games, facilitating a continuous stream of fresh content for players to enjoy.

Breakup by Platform:

• Android
• iOS
• Others
   

Android holds the largest share in the market

A detailed breakup and analysis of the market based on the platform has also been provided in the report. This includes android, iOS, and others. According to the report, android accounted for the largest market share.

Android’s open-source nature and widespread adoption across various devices are contributing to its remarkable success, thus driving the segment in the market. This adaptability means that the plethora of smartphones and tablets from different manufacturers and price points run on the Android operating system, expanding its potential user base significantly. According to an article by Business of Apps, Android is the most popular operating system in the world with over 3 billion active users spanning over 190 countries.

Breakup by Business Model:

• Freemium
• Paid
• Free
• Paymium
   

A detailed breakup and analysis of the market based on the business model has also been provided in the report. This includes freemium, paid, free, and paymium.

The freemium model offers games for free download while monetizing through in-app purchases which allows initial access without financial commitment. It offers players the flexibility to enhance their gaming experience by purchasing virtual items, power-ups, or premium features within the game.

Moreover, paid games require an upfront purchase cost for full access. While less prevalent than freemium, paid games often cater to a niche audience seeking a premium experience without in-app purchases. This model offers developers a clear revenue stream from each sale but may limit initial user acquisition due to the upfront cost.

Besides this, the free games model offers complete game play without any cost, relying solely on in-game advertising to generate revenue which typically attracts a large player base, thus accelerating the market growth. Furthermore, the paymium model combines elements of paid and freemium models. Players initially download the game for free but are later required to pay for additional content or features to unlock the full experience which offers a taste of the game's potential, encouraging players to invest for a more comprehensive engagement.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.  According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific region is dominating the global market. In addition, the growing population, rising disposable income, and the significant portion of mobile device users, in the Asia Pacific market are accelerating the market growth.  Also, countries such as China, Japan, South Korea, and India are driving the region's mobile gaming prowess. Moreover, the widespread adoption of smartphones, coupled with diverse gaming preferences are driving the demand for several games, from casual titles to complex multiplayer experiences representing another major growth-inducing factor. Along with this, the inclination toward social gaming and the popularity of esports with large-scale tournaments and competitive gaming leagues are attracting players and spectators, thus propelling market growth. According to an article in Seoulz, mobile gaming is more common in Korea than console gaming or PC gaming. Furthermore, Korea has over 35 million smartphone users. Therefore, there is a high demand for all form of gaming. Especially role-playing games where 90% of all mobile gaming revenue came from this genre.

Competitive Landscape:

Nowadays, key players in the market are strategically implementing various measures to fortify their positions and capitalize on the industry's growth potential. Additionally, leading companies such as Tencent, Electronic Arts (EA), and Supercell consistently invest in developing innovative and captivating game titles focusing on enhancing gameplay mechanics, graphics quality, and immersive experiences to attract and retain players. Moreover, emerging technologies such as augmented reality (AR) and virtual reality (VR) provide a competitive edge. For instance, Niantic, famous for Pokemon GO, actively explores AR gaming advancements. Besides this, strategic acquisitions of promising studios or successful games enable companies to expand their portfolios. Along with this, key players are tapping into the esports trend by organizing and sponsoring competitive gaming tournaments and leagues. For instance, Activision Blizzard hosts the Call of Duty League and Overwatch League, fostering a vibrant competitive gaming ecosystem.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Activision Blizzard Inc.
• Electronic Arts Inc.
• Gameloft SE (Vivendi SE)
• GungHo Online Entertainment Inc.
• Kabam Games Inc
• Nintendo Co. Ltd
• Rovio Entertainment Oyj
• Supercell Oy (Tencent Holdings Ltd)
• Take-Two Interactive Software Inc.
• Ubisoft Entertainment SA
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Recent Developments:

• In January 2024, Zynga Inc., a wholly-owned owned publishing label of Take-Two Interactive and a global leader in interactive entertainment, and Automobili Lamborghini S.p.A., an unrivaled manufacturer of pure and visionary super sports car, announced a multi-year agreement to make CSR Racing (CSR), the hyper-real mobile racing franchise of Zynga’s subsidiary NaturalMotion, an official partner of Lamborghini’s new LMDH prototype entry in the FIA WEC Hypercar Class and IMSA Grand Touring Prototype (GTP) Class global racing championship.
• In March 2024, Take-Two Interactive Software, Inc., one of the largest interactive entertainment companies in the world announced that it has entered into a definitive agreement with embracer group to acquire the Gearbox Entertainment Company, an award-winning creator of industry-defining entertainment experiences, $460 million.
• In June 2023, Ubisoft Entertainment SA and Level Infinite are pleased to announce that, after the licensing collaboration revealed in July 2022 by Ubisoft, Level Infinite will take on the role of publisher for the mobile game titled Assassin’s Creed Codename Jade.

Mobile Gaming Market Report Scope:

Key Questions Answered in This Report:

• How has the global mobile gaming market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global mobile gaming market?
• What is the impact of each driver, restraint, and opportunity on the global mobile gaming market?
• What are the key regional markets?
• Which countries represent the most attractive mobile gaming market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the mobile gaming market?
• What is the breakup of the market based on the device type?
• Which is the most attractive device type in the mobile gaming market?
• What is the breakup of the market based on the platform?
• Which is the most attractive platform in the mobile gaming market?
• What is the breakup of the market based on the business model?
• Which is the most attractive business model in the mobile gaming market?
• What is the competitive structure of the global mobile gaming market?
• Who are the key players/companies in the global mobile gaming market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the mobile gaming market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global mobile gaming market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the mobile gaming industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.