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The gamification market size is forecast to increase by USD 34.71 billion, at a CAGR of 29.15% between 2022 and 2027. The market's upward trajectory hinges on various factors, notably the escalating integration of gamification into e-learning platforms, the growing embrace of a customer-centric operational model, and the expanding scope of gamification applications. As e-learning continues to evolve, the strategic use of gamified elements enhances engagement and learning outcomes. Simultaneously, businesses are shifting towards customer-centric approaches, leveraging gamification to improve user experiences and loyalty. This dual trend underscores a broader acceptance and utilization of gamification across diverse sectors. The convergence of these trends propels market growth, driving innovation, user participation, and business success through gamification's dynamic and interactive strategies.
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This market report extensively covers market segmentation by application (consumer-driven application and enterprise-driven application), end-user (healthcare, entertainment, retail, education, and BFSI and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is driven by a myriad of factors, such as Rewards and recognition, which incentivize participation, leading to a higher Return on Investment, particularly within the Services segment and Consulting firms. The Implementation of platforms like SAP cloud platform gamification, SAP Community Network, and SAP TwoGo showcases the trend towards integrating gamification solutions. Challenges include understanding human behavior and effectively implementing gamification systems to drive engagement and boost productivity amidst increasing competition. The rise of AI in gamification is a notable trend, enhancing Customer relationships and fostering innovation in the industry. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing implementation of a customer-centric business model is driving market growth. A customer-centric business model enhances customer experience at the point of sale and post-sales. It helps enterprises differentiate themselves from their competitors. Gamification is the support process for a customer-centric business model. Gamification applications can improve customer engagement by providing real-time information about consumer behavior. This helps businesses measure customer responsiveness and improve their decision-making.
Moreover, businesses can use the available customer behavior data to gain a competitive edge and improve the customer experience. Gamification helps enterprises enhance their customer relationships and increase brand value, which can enable them to acquire more customers. Therefore, companies are shifting to a consumer-centric business model from a product-centric business model. The customer-centric business model encourages companies to adopt gamification solutions while engaging their target audience. Thus, the increasing implementation of the customer-centric business model will have a positive impact on the growth of the global market during the forecast period.
The integration of advanced technologies in gamification solutions is a key trend shaping the market. The providers of gamification solutions are integrating advanced technologies, such as AI, to enable real-time tracking of data and improve operational efficiency. Analytics, AI, and ML are used for real-time tracking at the back end to process different datasets. This data is then used to gain valuable insights and provides companies with updates on their employees' performances. Gamification apps integrated with AI are used to understand employee workflows, collect and use data about individual employees, and gather feedback via chatbots.
Moreover, Virtual reality (VR) and augmented reality (AR) applications provide interactive and immersive experiences through digital platforms. VR is used in corporate training to train people in high-risk jobs. A blend of AR/VR and gamification can help enhance the learning experience. The adoption of VR and AR in the education sector is rising, with the increasing interest in experiential learning. The integration of gamification solutions in VR and AR applications influences user behavior. Rewards and competition can have a positive impact on a student's concentration and interest. These factors will fuel the market during the forecast period.
The availability of in-house gamification solutions may impede the market growth. Companies are establishing in-house IT teams to manage and control their gamification activities. Outsourcing gamification solutions incurs high setup costs, which are unaffordable for many companies. In-house gamification solutions can be easily customized, as developers are aware of the business model and metrics in the system.
Companies are developing their own Objectives and Key Results (OKR) applications to achieve HR, sales, marketing, product management, customer support, and employee engagement goals. They are integrating gamification elements, such as scores, rewards, and awards, to increase employee productivity. These in-house systems are highly customized and pose a challenge for gamification vendors. Therefore, the customization and low cost of implementing in-house gamification solutions are expected to negatively impact the growth of the global market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Allen Interactions Inc. - The company offers gamification solutions that use game contexts and mechanics to achieve learning results. The training and education segment of the company includes services such as custom elearning, mobile learning, microlearning, and blended learning.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative market research and growth analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
In the market, Support and maintenance services play a crucial role in ensuring the smooth operation and optimization of gamified systems. The Telecom segment is actively adopting gamification strategies to enhance customer engagement and loyalty, while the Solution component segment focuses on innovative game-design features and gaming ideas. Employee rewards and Rewards and recognition programs are integral parts of gamification, driving Return on Investment and boosting productivity within the Services segment and Consulting firms. The Implementation of platforms like SAP cloud platform gamification, SAP Community Network, and SAP TwoGo showcases the growing trend of gamification in business operations. Mobile devices and gamification systems are transforming user experiences, understanding human behavior, and driving engagement across social networking sites and mobile applications. Marketers are leveraging gamification to strengthen Customer relationships, especially in the retails industry vertical and various Organisations.
The market share growth by the customer-driven application segment will be significant during the forecast period. Consumer-driven applications are tools or platforms used for applying game mechanics to non-game contexts. The use of these tools boosts consumer engagement and improves customer satisfaction.
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The customer-driven application segment was valued at USD 3.94 billion in 2017 and continued to grow until 2021. End-user segments, such as healthcare and retail, are adopting the customer-centric business model. The integration of gamification solutions with this model increases the sales of brands. End-users implement gamification solutions to increase customer loyalty and customer engagement. These solutions help in customer retention and identifying consumer behavior. Companies can gamify the sales process at any point for customer interaction by integrating gamified elements in gift cards, marketing campaigns, discounts, offers, and credit points. The increasing need for customer engagement, customer loyalty, and customer satisfaction are compelling end-users to integrate innovative solutions such as gamification. These factors are expected to drive the demand for gamification solutions in the consumer-driven application segment during the forecast period.
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North America is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in North America is attributed to factors such as the presence of major vendors, such as Microsoft Corp., SAP SE, Cognizant Technology Solutions Corp. (Cognizant Technology Solutions), and BI WORLDWIDE. High internet and smartphone penetration and the presence of a well-developed communication network infrastructure also fuel the regional market's growth. Enterprises in this region need an optimized, scalable, and secure enterprise environment, which is increasing the demand for corporate training. These enterprises integrate gamification solutions in their training processes. Therefore, the growth rate of the market in North America is expected to increase during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is thriving, driven by various key factors that are reshaping industries and user engagement strategies. Companies are increasingly focusing on Rewards and recognition to motivate their employees and customers, boosting loyalty and productivity. The Return on Investment in gamification strategies is becoming more evident, especially in the Services segment, where Consulting firms offer tailored solutions.
Moreover, telecom companies are leveraging platforms like SAP cloud platform gamification to enhance user experiences, while the SAP Community Network and applications like SAP TwoGo and SAP Fitness application integrate gamification for engagement. AI-driven insights from platforms like Qualtrics and Vitality are further shaping gamified experiences, ensuring personalized and effective engagement. The rise of Software-as-a-Service (SaaS) models, coupled with the widespread use of mobile devices and gamification systems, is driving innovation in understanding human behavior and leveraging social networking sites and mobile applications. Marketers are employing surveys to target audience members effectively, enhancing profitability and brand advocacy.
Furthermore, in the gaming industry, the demand for ML (Machine Learning)-powered solutions is rising, especially after statewide shutdowns, leading to increased retail sales growth and adoption of e-commerce trends among online retailers. Platforms like Tapjoy offer innovative progress charts and solutions for the retails industry vertical. Overall, gamification is transforming Organisations across sectors, with Gamification software incorporating advanced AI-based technologies and Mixed reality technologies for an improved customer-centric approach, whether through On-premise deployment or Cloud deployment. Players like Attensi, Gong, and Grand River Hospital are leading this innovation wave, focusing on engaging experiences and effective outcomes.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.15% |
Market growth 2023-2027 |
USD 34.70 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.68 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 53% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allen Interactions Inc., Ambition, Aon plc, Axonify Inc., BI WORLDWIDE, Cognizant Technology Solutions Corp., Designing Digitally Inc., Gamification Ltd., Houghton Mifflin Harcourt Co., ImmersionOne Inc., Influitive Corp., Learning Technologies Group Plc, LevelEleven Inc., Microsoft Corp., MPS Ltd., MRCC Group, Paradigm Learning Inc., PUG Interactive Inc., SAP SE, and Raydiant Inc. |
Market dynamics |
Parent market analysis, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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