Mobile Gaming Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, South Korea, Germany - Size and Forecast 2024-2028

Mobile Gaming Market Forecast 2024-2028

The global mobile gaming market size is estimated to grow by USD 76.42 billion at a CAGR of 11.44% between 2023 and 2028. The market's growth hinges on various factors, notably the surge in multiplayer mobile games' popularity and the increasing adoption of AR-based mobile games. Additionally, the proliferation of strategic partnerships and acquisitions further propels market expansion. These trends collectively contribute to the dynamic landscape of the mobile gaming industry, fostering innovation, enhancing user experiences, and driving sustained growth in the market.

Moreover, the market research and growth report forecasts include detailed analyses of the competitive landscape of the market and information about 20 market companies, including Activision Blizzard Inc., CyberAgent Inc., Electronic Arts Inc., Epic Games Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., Niantic Inc., Nintendo Co. Ltd., Square Enix Holdings Co. Ltd., Tencent Holdings Ltd., The Walt Disney Co., Behold Studios, DeNA Co. Ltd., Larva Game Studios, Modern Times Group MTG AB, Netmarble Corp., NEXON Co Ltd., Sega Sammy Holdings Inc., and Ubisoft Entertainment SA

 Market Growth and Forecasting

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Market Dynamics 

The market is driven by various factors, including the exponential growth in smartphone adoption, advancements in smartphone hardware capabilities, and the widespread availability of high-speed 5G technology. Moreover, the increasing popularity of hyper-casual games and the continuous innovation in mobile game development further propel market growth. However, challenges such as fierce competition, evolving consumer preferences, and the need for effective advertising strategies pose significant hurdles. Navigating these challenges while capitalizing on emerging trends will be crucial for stakeholders in sustaining growth and success in the dynamic industry. Our researchers analyzed the data with 2023 as the base year, along with the market trends and analysis, drivers and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. Experience your first mobile game as a pastime. Explore projections for mobile adoption and smartphone usage. Embrace the future of gaming on-the-go with the evolution of mobile technology.

Key Market Drivers

An increasing number of strategic partnerships and acquisitions is notably driving market development. The partnership between stakeholders, such as gaming solution providers, gaming content providers, and other gaming platform providers, enhances product offerings and results in the release of games across the world. For instance, In January 2022, Microsoft Corp. announced plans to acquire Activision Blizzard Inc., a game development and interactive entertainment content publisher. This acquisition might accelerate the growth in Microsoft's gaming business across mobiles, PCs, consoles, and the cloud and provide building blocks for the metaverse. 

Moreover, by expanding into new genres, platforms, or segments through partnerships or acquisitions, companies can diversify their revenue sources, balance revenue streams, and reduce the risks of exposure to market fluctuations or competitive pressures. Strategic partnerships and acquisitions are expected to help companies expand their geographic presence and increase their customer base, which is expected to drive the growth of the market during the forecast period.

Significant Market Trends

Growth in the availability of free-to-play mobile games is an emerging trend shaping market development. Free-to-play mobile games, which are a part of the freemium model, provide an opportunity for gaming service providers to promote their games and convert free users into premium paid users. Users can download free-to-play mobile games from the Google Play Store and the Apple App Store free of cost. In such games, virtual currencies are used to buy virtual goods through microtransactions. The virtual goods include different dresses, models, and others. In some instances, users spend real money to purchase virtual products, such as coins, magic wands, houses, guns, and swords, in mobile games.

Further, mobile gaming service providers can monetize their services by providing access to many freemium games through the Play Store and the App Store. Developers give away the core functionalities of applications free of cost and offer upgrades to add certain features for the money. Users who are interested in playing such games are expected to pay for the upgrades, which is expected to help game service providers increase their revenues and drive the growth of the market during the forecast period.

Major Market Challenges

The risk of cybercrimes in online mobile gaming is a significant challenge hindering market growth. The presence of connected gaming platforms online increases the risk of cybercrimes. As video games are widely available online through Microsoft Xbox Live and other similar platforms, cybercriminals are finding new ways to exploit users in the online gaming community. The types of cybercrimes in online gaming include hacking, phishing, spoofing, and gold farming. Cybercrimes are prevalent in the market. For instance, in October 2022, Activision Blizzard was hit with a cyberattack, causing connectivity issues in games. 

Moreover, data breaches or security vulnerabilities in mobile gaming platforms can expose the personal information, payment details, or gameplay data of players to unauthorized access or theft. Privacy violations can result in regulatory fines, legal liabilities, reputational damage, and loss of player trust, thereby adversely affecting the growth and credibility of companies. Any cybersecurity-related attack, significant data breach, or disruption of the IT systems or networks of gaming service providers is expected to limit the growth of the market during the forecast period.

Market  Segmentation by Platform, Type, and Geography

The market is driven by various factors shaping its segmentation. The mobile gaming industry is witnessing significant growth due to the increasing adoption of smartphones and tablets, fueled by higher smartphone adoption rates and rising income levels globally. Moreover, advancements in 5G technology are facilitating enhanced experiences, leveraging smartphone hardware capabilities. Unity Technologies plays a pivotal role in empowering mobile game development departments to create innovative games, driving market expansion. With a focus on advertising investment and CTR (click-through rate) tests, companies are refining their advertisement strategies for better product differentiation in the hyper-competitive gaming industry landscape. The sector continues to evolve, catering to diverse players and their preferences, thus contributing to the dynamic growth of the mobile gaming content market.

Platform Analysis 

The online segment is estimated to witness significant growth during the market forecast period. Mobile games that are primarily played online are a part of the online segment. The rising adoption of mobile devices and the increasing penetration of the internet across the world have encouraged several game service providers to develop online games for mobile devices. The growth of the online segment is driven by various factors. Most online mobile games are available free of cost on application stores.

Figure 2: Market by Platform (2024-2028)

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The online segment was the largest and was valued at USD 36.11 billion in 2018. The popularity of massively multiplayer online (MMO) games also drives the growth of the online segment. MMO games allow multiple players to game online simultaneously from anywhere and at any time. MMO games are designed to be played on different network-capable platforms, and they permit players to interact with each other. The increasing number of in-app purchases of virtual goods and microtransactions, which require users to pay for virtual goods that are a part of online games, also drives the growth of the online segment. Virtual goods include objects such as weapons and potions and virtual avatars. Hence, the probability of gamers making in-app purchases either to advance to a new level or to get a new feature is high. Such factors are expected to drive the growth of the online segment, which, in turn, is anticipated to drive the market growth during the forecast period.

Type Analysis

Based on the type, the market has been segmented into casual gaming and professional gaming. The casual gaming segment will account for the largest share of this segment.?  The term casual gaming refers to games that do not require a major time investment to play, win, and earn. A casual gaming service provider generates revenue by licensing the gaming software to the end user. The market for casual gaming is growing with the increasing adoption of mobile gaming. Casual gamers do not prefer spending money on gaming peripherals. Most casual gamers prefer mobile devices over PCs and consoles because of easy access to the games. This social interaction can be particularly engaging in the context of playing with friends, as players can catch up on each other's lives while also working towards a common goal. Hence, it helps to offer a better gaming experience, which is expected to drive the growth of the casual segment in the market during the forecast period. 

Regional Analysis

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APAC is estimated to contribute 54% 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. APAC is a hub for mobile gamers and mobile gaming companies. Countries such as China and Japan significantly add to the demand for the market in the region, owing to the development of new mobile games. For instance, the biggest mobile games in China, which include Honor of Kings and PUBG, continued to be the most lucrative games globally amid a tougher market and a prolonged suspension of new video game licenses in the country. Further, the demand for consumer electronic devices offered by companies that are based in China is increasing in India and China.

As a result, consumer electronic device manufacturers that are based in China have increased their production capacity. Smartphone manufacturers that are based in China, such as Xiaomi, OPPO Mobile Telecommunications and others, generate significant profits from the sales of smartphones in the region. Hence, the penetration of low-range and medium-range smartphones is increasing in APAC, which, in turn, is expected to increase the demand in the region. Moreover, successful mobile games in APAC often prioritize localization and cultural relevance to resonate with local audiences. Game developers tailor content, themes, characters, and monetization strategies to align with the preferences, tastes, and cultural sensitivities of APAC players. Therefore, such factors drive the growth of the market in the region during the forecast period.

Major Companies and Competitive Insights

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.

Activision Blizzard Inc. - The company offers mobile gaming platforms such as Candy Crush, Call of Duty, World of Warcraft, Overwatch, Hearthstone, and Diablo.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview 

The market continues to thrive amidst various trends and drivers. With the rise of the hyper-casual game sector, developers focus on optimizing battery drain and accommodating diverse screen resolutions to enhance player experiences. Technological advancements, including 5G technology growth and ultra-low latency, bolster smartphone penetration and enable immersive multiplayer gaming experiences. Cloud gaming services leverage hyper-scale cloud capabilities and global content delivery networks to cater to a growing audience. App stores play a crucial role in facilitating in-game purchases and app store optimization (ASO). The market sees a surge in social connectivity and advertisements to engage players, while indie developers and AAA-caliber mobile games contribute to market revenue. Despite challenges like performance limitations and geopolitical tensions, the market remains resilient, shaping the global gaming landscape and attracting potential players across various demographics and platforms.

Market Scope
Report Coverage	Details
Page number	164
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 11.44%
Market growth 2024-2028	USD 76.42 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	9.7
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 54%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Activision Blizzard Inc., CyberAgent Inc., Electronic Arts Inc., Epic Games Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., Niantic Inc., Nintendo Co. Ltd., Square Enix Holdings Co. Ltd., Tencent Holdings Ltd., The Walt Disney Co., Behold Studios, DeNA Co. Ltd., Larva Game Studios, Modern Times Group MTG AB, Netmarble Corp., NEXON Co Ltd., Sega Sammy Holdings Inc., and Ubisoft Entertainment SA
Market dynamics	Parent market analysis, 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 market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecasting
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• market growth analysis across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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