Industry Arc compiled a detailed analysis of the worldwide online gaming market. The forecast from 2024 – 2030 reveals a compound annual growth rate (CAGR) of 9.1% with a forecast figure of $152.6B. The data shows a strong causality between increased use of tablets and smartphones and higher spending on online games.
High-speed Internet access, trusted networks, and the provision of world-class games fuel the unprecedented uptick in online gaming activity. Dramatic advances in XR (Extended Reality), VR (Virtual Reality), and AR (Augmented Reality) are likely to drive current and future demand.
Interestingly, the rise in mobile gaming dovetails with the increase in players’ online gaming proclivity.
Much of the upside is fuelled by a spike in smartphone adoption. Mobile gaming is front and center in the equation, propelling much of the growth. Added to its accessibility and convenience is the cost-effectiveness of mobile gaming. Mobile devices, including tablets, iPhones, iPads, and Android handhelds are a daily staple. Players prefer gaming on mobile, compared to personal computers and Macs.
A growing player base, augmented by the long-term tech trends in the industry, bodes well for players and game makers across the board. The leading online gaming companies, Zynga Poker among them, continue to leverage micro-transactions and in-game purchases to bolster revenue, drive engagement, and deliver on expectations. Importantly, the leading online free games companies provide an ever-increasing range of attractions, with more tournaments, jackpots, and accessible tables than ever before.
Important Takeaways from the Industry Arc Report
The online gaming arena is dominated by the North American market (the United States and Canada), with 42% + of total market share. Accordingly, this market has witnessed a dramatic rise in government support, Internet use, and long-term investments. From 2024 through 2030, the mobile gaming industry anticipates a forecast growth rate of 6.5% (compound annual growth rate).
This is largely a result of rising adoption and high penetration rates in mobile. In concert with rising levels of smartphone adoption is the unprecedented growth in VR technology. While many VR systems are in the prototype phase, unprecedented investment activity is taking place in R&D departments. Many companies are building consumer-friendly variants of virtual reality game constructs.
Among the world’s top 10 fastest-growing gaming companies (2024 Industry Ark Report) are Wargaming, Zynga Inc, Sony Corp, Ubisoft, Konami, Sega, Tencent, Activision Blizzard, Microsoft, and Ubisoft. And it’s largely the mobile gaming domain driving this growth at 4.5% CAGR in this period. Games such as Zynga Poker, Fortnite, Battle Royale, and the popular PUBG drive unprecedented growth in this arena.
Thanks to these games, the mobile gaming market has generated major investments in mobile games. As a case in point, 2022 saw as much as $3.2 million in prizes for eSports tournaments. In the same year (2022) Web3 gaming companies across the subcontinent in India raised a whopping $620M+ from dozens of deals.
Unprecedented Advances in Gaming from State Operators
In 2023, Internet penetration across North America hit 93%, with growing amounts of time spent by adult players. Thanks to 5G technology, further growth is expected, with more games slated for release. More interconnected devices will bolster this. The government has an important part to play in the process.
Sweden, for example, has a public/private business partnership named the Sweden Game Arena. It is tasked with helping student developers with all the tools and resources provided by the government. In the United Kingdom and the United States, a multitude of investments exists to finance these industries for entrepreneurs, creators, and enthusiasts.
Notable among the changes taking place in the gaming industry are several important acquisitions. For example in October 2023, taken giant Microsoft finalized its takeover of Activision Blizzard. At $69 billion +, this is the largest-ever deal in the video gaming industry.
For Microsoft, it’s a strategic cash cow, designed to position the company for even greater levels of success in the future. Other major players in the industry, such as Sony Interactive Entertainment recently acquired Haven Entertainment Studios Inc to increase Sony’s footprint in the iGaming market.
Notable Trends in the iGaming Arena
Over and above the data presented by the Industry Ark Report, stakeholders are witnessing the rise of reboots and remakes. We see evidence of this throughout the industry, and it’s important on several levels. For one thing, modern graphics and technology have the capacity to dramatically reinvigorate all the classics.
This makes the games much more enticing to a modern day audience. It’s about nostalgia and a sense of familiarity with feelgood attractions. Equally interesting is the rapid growth of Indie games with top-tier platforms including Roblox. Games like Stardew Valley and Among Us are cases in point.
In terms of PC-based games, Steam is fighting to retain its ranking status. New platforms like the Epic Games Store and even GOG.com are putting up a fight. In much the same way, cloud gaming services with Xbox Cloud Gaming and PlayStation Plus are leading the way. This is notable on many levels, particularly costs. Now, players can play all their favorite titles without buying costly hardware.
Viewed in perspective, the iGaming industry is experiencing transformative change across the board. Whether it’s indie games or a sharp spike in cloud-based gaming, these trends are bound to drive the industry towards enhanced prosperity.
