Innovation in Gaming Market Trends and Business Growth: GlobalData

GlobalData, a leading data and analytics company, has revealed three reports on the global gaming industry.

Gaming market in Asia Pacific

In 2023, the Asia-Pacific (APAC) region asserted its dominance in the global mobile gaming market, contributing to 64 percent of the total revenue, as reported by GlobalData. This remarkable share was fueled by the presence of 5.2 billion mobile subscribers in the region, representing more than half of the global total.

According to the latest data, the revenue from mobile gaming has reached $124 billion in 2023 and is projected to soar to $195 billion by 2030. Notably, China emerged as the frontrunner in mobile gaming revenue, capturing approximately 31 percent of the global share. Following China, the United States trailed with a distant 17 percent, while Japan, South Korea, and Germany secured their positions in the top ranks.
Gaming revenue in Asia Pacific GlobalDataThe proliferation of 5G networks significantly facilitated the expansion of mobile gaming across the APAC region. As of 2023, APAC accounted for about 75 percent of the global mobile 5G subscriptions, boasting 1.8 billion subscriptions primarily concentrated in China, South Korea, and Japan.

Rupantar Guha, Principal Analyst at GlobalData’s Thematic Intelligence, says that the number of 5G subscriptions will surge to nearly four billion by the end of 2028, further solidifying the region’s dominance in the mobile gaming market.
5G growth drives gaming business in Asia PacificHowever, regulatory challenges loom as a formidable threat. In 2023, China’s proposed regulations aimed at curbing in-game spending dealt a significant blow to market giants Tencent and NetEase, causing an estimated $80 billion in market value loss.

Regulations encompassing various aspects such as in-app purchases, data privacy, child safety, antitrust measures, utilization of artificial intelligence (AI), and app store commissions are anticipated to continue impacting all players in the mobile gaming industry.

As the APAC region continues to spearhead the global mobile gaming market, industry stakeholders brace themselves for evolving regulatory landscapes, ensuring resilience and adaptation in the face of challenges while capitalizing on the region’s immense growth potential.

Gaming Technology Innovation

The gaming industry, propelled by escalating demand and technological progress, is undergoing a rapid transformation. The gaming industry has witnessed significant growth and continues to flourish, with companies engaging in strategic innovation, collaboration, and acquisitions to cater to the diverse needs of gamers worldwide.

Data from the Company Filings Analytics Database of GlobalData indicates a vibrant landscape within the gaming sector during the 2023-24 period. Discussions surrounding collaboration, acquisitions, and the development of new games and accessories underscore the industry’s dynamic growth trajectory.
Global mobile gaming revenue GlobalDataCompanies are actively pursuing innovative strategies to enhance the gaming experience for consumers globally. This includes forging licensing relationships, collaborations, and acquisitions to introduce new gaming formats and expand their gaming businesses across various regions.

For example, HP Inc recently partnered with Riot Games to co-develop future gaming products, innovate technically, and launch co-branded marketing campaigns. One of their notable releases is the HyperX Cloud III gaming headsets, designed to provide gamers with immersive audio experiences.

In a bid to strengthen their presence in eSports, Vodafone Idea, a leading telecom operator in India, has disclosed a partnership with the renowned global eSports entity, “Team Vitality,” during its earnings call transcript.

Some companies have opted for acquisitions as part of their growth strategy within the gaming sector. Esports Entertainment Group, for instance, outlined its intention to acquire iGaming and traditional sports betting platforms to bolster its esports business offerings, including game centers, online tournaments, and player-versus-player wagering.

Aristocrat Leisure’s acquisition of NeoGames is anticipated to bring forth technological advancements, expanded distribution channels, and additional talent to the company’s fold.

Microsoft’s acquisition of Activision Blizzard has significantly augmented its gaming ecosystem, adding hundreds of millions of gamers. The company boasts over 200 million monthly active users in Xbox PC, with a 44 percent year-over-year increase in streaming hours for cloud gaming.

Other gaming companies, such as Take-Two Interactive Software and Globant, are fostering licensing relationships and establishing innovation hubs to enhance their online gaming presence and explore new avenues in regions like China and South Korea.

Tencent, a leading Chinese multinational technology company, is actively developing a pipeline of new games, including Honour of King World, Valorant Mobile, and Delta Force, to drive revenue growth.

Advanced Micro Devices (AMD) has reported revenue growth in gaming graphics, with the introduction of high-performance graphics cards like the AMD Radeon RX7800 XT and Radeon RX7700 XT. AMD also unveiled handheld PC gaming consoles featuring RDNA 3 architecture-based graphics, aimed at delivering portability and extended battery life for immersive gaming experiences.

Misa Singh, Business Fundamentals Analyst at GlobalData, highlighted the convergence of innovation and collaboration within the gaming industry, envisioning a future characterized by limitless potential in transformative gaming experiences.

Mobile Gaming Becomes Essential 

GlobalData underscores the indispensability of mobile gaming expertise for all game companies as the mobile gaming market outpaces both console and PC gaming combined.

In 2023, mobile gaming revenue surged to $124 billion, projected to reach $195 billion by 2030. While the market exhibited robust growth rates of 25 percent in 2020 and 10 percent in 2021, the annual expansion slowed to 3 percent in 2022 due to rising inflation impacting consumer spending. However, signs of recovery emerged in 2023, with a 6 percent revenue increase compared to the previous year.

The convergence of factors such as the maturation of streaming, cloud gaming, and mobile esports, coupled with mobile platforms nearing technological parity with PCs and consoles, heralds widespread adoption of mobile gaming among gamers in the coming years. The capability to run high-quality, blockbuster games like Resident Evil 4 and Assassin’s Creed Mirage on mobile platforms is expected to attract both publishers and gamers alike.

Console and PC game giants like Activision Blizzard (under Microsoft) and Take-Two Interactive are strategically pivoting towards mobile gaming, recognizing its lucrative revenue prospects. Additionally, video streaming services such as Netflix and online advertisers like AppLovin are also venturing into the mobile gaming sphere.

However, the mobile gaming landscape is fiercely competitive, with companies vying for market share. Despite the promising revenue outlook, mobile gaming companies face significant challenges, notably in regulatory matters, according to Rupantar Guha, Principal Analyst at GlobalData’s Thematic Intelligence.

As mobile gaming continues to assert its dominance in the gaming industry, companies must navigate regulatory hurdles while capitalizing on the immense opportunities presented by this burgeoning market segment.

Baburajan Kizhakedath

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