Mobile Gaming Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Mobile Gaming Market Trends & Growth Drivers

Mergers, Acquisitions, and Collaborations Are Key Trend

• Companies in the global mobile gaming market are trying to expand across genres, update their games, diversify their portfolios, and enter new markets through mergers, acquisitions, and partnerships.
• Even non-gaming businesses are entering the market because they see a lucrative potential for growth. For instance, in August 2021, Netflix started testing games within its mobile application for users in Poland. According to the company, Stranger Things: 1984 and Stranger Things 3 would be tested out by paid subscribers.

Growing Popularity of Esports Is a Major Driver

• In recent years, the esports sector has grown remarkably, with an increase in both audience and money. The main factor driving this growth has been the notable increase in viewing. But it is not just because of the money that viewers donate.
• As more companies realize how much potential there is to reach a large and fervent audience through direct sponsorship and indirect promotional efforts, they are contributing funds to esports marketing initiatives.
• The esports business has experienced tremendous revenue development due, in large part, to the inflow of funding from brands.

Cybercrimes Pose a Significant Risk in Realm of Online Gaming

• The possibility of cybercrimes in mobile games presents a serious obstacle to the industry's expansion. The likelihood of cybercrimes is augmented by the rise in the number of online gaming platforms. Since video games are easily accessible on services such as Microsoft Xbox Live, hackers are coming up with new strategies to take advantage of players.
• Online gaming cybercrimes include, but are not limited to, hacking, phishing, spoofing, and gold farming. Cybercrimes are common, such as that seen by the Activision Blizzard hack in October 2022, which resulted in game connectivity problems.
• Data breaches or security vulnerabilities in mobile gaming platforms can expose players' personal information, payment details, and gameplay data to unauthorized access or theft. The infractions of privacy have the potential to cause regulatory penalties, legal ramifications, harm to a company's brand, and a decline in player confidence, all of which can be detrimental to its expansion and legitimacy.
• Throughout the forecast period, any major data breach, -related assault, or disruption of the IT systems or networks of gaming service providers would restrict market growth.

Penetration of Cloud and AR/VR Games Is an Opportunity

• Cloud computing is transforming the mobile games business by offering better growth options for mobile game providers. The cloud has been adopted by a variety of technology companies and cloud gamers as it reduces the requirement for memory on smartphones to unlock the game.
• Users can interact with the audio and visual content of the game in a more-realistic environment with augmented reality. VR takes things a step further by providing gamers with an immersive 360-degree view and the first-person perspective of the virtual world. Ingress and Pokémon Go are the most-played AR genre on mobile app stores.
• Smartphone makers are releasing dedicated gaming phones with high-end graphics, which improve the gaming experience for players and help the global mobile gaming business expand.

Mobile Gaming Industry Outlook

Platform Insights

The Android category has emerged as the top revenue generator, with 45% share in 2024. The scalability of the mobile gaming industry has been notably boosted by the proliferation of Android mobile games. Moreover, most people use Android phones because of the cross-compatibility and intercommunication ease of different models and the programs they run.

The platforms covered in the report include:

• iOS
• Android (Largest and Fastest-Growing Category)
• Others

Age Group Insights

• In 2024, the 24–44 years age group held the largest share in the market, of 50%, due to this age group's greater adoption of advanced technology.
• Most smartphone users are in this age bracket, as they are technically sophisticated and keen to try new products. The release of new smartphones with special features that support high-tech games influences gamer involvement, because these devices provide a better user experience.
• In recent years, a large number of females in this age group have become fond of videogames, which is why many media & entertainment companies are launching mobile games especially meant for them.

The following age groups are included in the report:

• Below 24 Years
• 24–44 Years (Largest and Fastest-Growing Category)
• Above 44 Years

Business Model Insights

• The freemium category is expected to witness the highest CAGR, of more than 40%, during 2024–2030. The additional benefit of making in-game purchases provided by freemium games is credited for the growth. In a freemium game, the basic game edition is accessible completely free; nonetheless, the user must pay for extra functions or level upgrades.
• The layout aspect of these versions is essential since the customer should not think that a level is either too difficult to progress or too easy to pass. Advertisements, in-app purchases, and virtual item purchases account for a substantial portion of the revenue for the freemium game creators.
• The availability of numerous payment mechanisms with such firms allows gamers to choose as per preference, hence enhancing mobile game income. For instance, Candy Crush Saga earns revenue through the freemium model.
• Most mobile game makers choose the freemium business mode, since it has infinite possibilities, and these games can be downloaded for free. This enables users to test a game before choosing whether to spend their money or time on it, thus leading to increased revenue.

The business models covered in the report include:

• Freemium (Largest and Fastest-Growing Category)
• Paid
• Free
• Paymium

North America Is Largest Market

• In the mobile gaming industry, North America held the largest share, of 55%. Owing to a large population of smartphone users, mobile games have become incredibly popular across different age groups in North America. The substantial market size can also be attributed to the strong gaming culture, favorable economic conditions, and a high rate of smartphone adoption.
• The increasing penetration of 4G networks and their rapid replacement with 5G technology is a significant driver. It is projected that 5G connections will account for around 48% of the total connections by 2025. Leading network service providers in the region, such as AT&T Inc., Verizon Communications Inc., and T-Mobile USA Inc., have already launched 5G networks in the major cities across the region.
• APAC will witness the highest compound annual growth rate, of more than 10.8%, from 2024 to 2030.
• The main reason for this is the rise in the popularity of mobile games in China. Which has a large user base majorly due to the rising smartphone usage. The improving internet connectivity and rising mobile phone sales are driving the market advance at a robust rate in China and India. Further, because of the expanding middle class, the mobile gaming market growth here is expected to outpace that in all other regions.
• Moreover, the increasing internet penetration is further fueling the growth of the market in the region. As per GSMA Intelligence, internet penetration is projected to grow from 41.7% in 2019 to 54.4% in 2025. In addition to this, the smartphone penetration in the region is also projected to grow from 61% in 2018 to 83% by 2025.

The regions and countries analyzed in this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Mobile Gaming Market Share

• There are several major players in the fragmented mobile gaming market. In order to stay competitive, they have launched new products and partnered with each other.
• The market for mobile gaming is expected to continue growing because of major investments made by leading industry players in R&D to expand their product offerings.
• Releases of new products, contracts, mergers and acquisitions, increased investment, and cooperation with other companies are all significant changes in the market.
• To expand their global footprint, market players also take part in a number of calculated initiatives.
• To expand and prosper in a more ruthless and competitive climate, the mobile gaming business must provide items at fair costs.

Mobile Gaming Market News

• In August 2023, Microsoft restructured its proposed acquisition of Activision Blizzard and notifies the restructured transaction terms to the U.K.’s Competition and Markets Authority.
• In December 2023, Nazara announced plans to release an array of mobile games made in India through its publishing arm.
• In April 2023, plans for theacquisition of Rovio Entertainment Oyj were announced by SEGA.
• In May 2021, Miracle Games SG launched Farlight 84, a battle royale shooter game, for beta testing.
• In September 2021, Stillfront, a gaming studio firm, paid USD 205 million for Jawaker, a mobile game developer, in order to diversify its game portfolio and increase its footprint in the MENA region.