A significant change has occurred in the mobile game industry due to the increase in the number of gamers. There is no doubt that this change has resulted in more revenues being generated for the industry. Thus, game developers, marketers, and other operators pay special attention to mobile gaming industry trends and statistics.
If you want to capitalize on this opportunity, you will benefit greatly from being informed about relevant trends and statistics. Making smart decisions and building your business will be easier when you possess these skills, along with industry knowledge. Mobile gaming generates more revenue than the music and film industries combined. To understand what gaming will look like in the future, let’s look at an in-depth mobile gaming industry analysis.
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Impact of the Pandemic on the Mobile Gaming Industry
The mobile gaming market is expected to grow at a CAGR of 12.5% during the forecast period(2022-2027). Global business practices have been affected by COVID-19 all across the globe. However, the mobile gaming industry’s growth has benefited from the pandemic. People were able to find relief from these challenging times through mobile gaming.
During the global quarantine, mobile games helped relieve stress, provide entertainment, and provide social connections which greatly contributed to the mobile gaming industry’s worth.
Fastest Growing Market
North America (NA)
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The mobile gaming industry analysis reveals that the mobile game industry is flourishing and expanding at a rapid pace. The increased popularity of mobile games can be attributed to the various mobile game market trends that attract more users towards this segment. Let’s take a look at the mobile gaming statistics for 2023.
There were over 3.9 billion smartphone users worldwide in 2021.
Consumer spending on mobile games was registered at $116 billion in 2021. It is expected to reach $138 billion by the year 2025.
China was the most profitable mobile game market followed by the United States, and Japan. The registered game revenue stood at $56 billion. $43 billion, and $20 billion respectively.
Over 82.9 mobile games were downloaded by gamers in 2021.
71% of Google Play’s revenue is expected to come from mobile games by 2025.
User penetration is expected to reach 28.5% by the year 2025.
Top Grossing Mobile Game Genres
Key Trends in Mobile Gaming Industry in 2023
Mobile gaming has become very popular in today’s world. We have listed the key trends in the mobile gaming industry in 2023 that shouldn’t be overlooked.
1. Augmented Reality Gaming
The concept of augmented reality gaming can be described as the combination of game visuals and audio content so users can view and interact with the game in real time. In contrast to VR gaming, AR gaming builds a playing field based on the present environment. The headsets you need for AR systems aren’t actually specialized. Mobile gaming devices such as tablets, smartphones, and other portable gaming systems allow users to view, access, and play augmented reality games.
2. The Ascension of VR Gaming
It is a highly mesmerizing experience for gamers to experience VR (Virtual Reality). The VR headset allows gamers to interact with objects in a virtual environment. As time progresses, we can expect that graphic quality and VR games’ overall quality will also improve. Mobile games will be greatly impacted by VR in the future due to the global revenue generated from the sale of VR accessories, HMDs, and content.
A better gaming experience is undoubtedly provided by AI models. Your game’s success or failure could be determined by AI in game development. The popularity of technologies like AR and VR has already been mentioned. Gaming will be forever changed by the combination of AR, VR, and AI. AI is already widely used in mobile games for NPC learning, AI chatbots, and various other aspects.
4. NFT and Blockchain
The mobile gaming industry trends are becoming increasingly dependent on blockchain and NFTs. As with cryptocurrencies like Ethereum and Bitcoin, NFTs are quite similar. Real estate, music, artwork, and other non-fungible assets are tokenized with these tokens. Blockchains, on the other hand, provide durability and decentralization due to their consensus algorithms. Moreover, with the advent of Metaverse Game Development that utilises NFT and Blockchain technologies, gaming will be revolutionalised in the future.
With recent technological advancements, AAA gaming which was previously only available on PC and consoles, has made its way to smartphones. The advent of Mihoyo’s Gensin Impact started the revolution of AAA mobile gaming. Genshin Impact was released for smartphones and within the first month of its release, it managed to generate $150 million in revenue. Moreover, the mobile game experience is exactly similar to how you would get in a PC or console.
If we look at the previous year’s mobile game market trends, the hypercasual genre has gradually made its way to the top. Games like Among Us and Fall Guys were loved by gamers and topped the charts. Moreover, the hypercasual genre crossed 10 billion downloads in the year 2020. According to studies, people turned towards the hypercasual genre during the pandemic as people were desperate for an alternative source of entertainment. The simplicity of hypercasual games makes them the perfect option to kill time and relieve stress for gamers.
Subscriptions and VIP programs have become quite common in mobile games. Games like PUBG Mobile, Call of Duty, and other popular games are utilising this model in an effort to generate additional revenue. In 2023, we expect more games to adopt this monetization model and provide subscription-based benefits to users. However, it is important to keep in mind that this is just an additional monetization model that works in tandem with in-app purchases.
Some examples of subscriptions in mobile games include-
Now that you are aware of the mobile gaming industry’s worth and its potential, you must be thinking-” How to Invest in the Mobile Gaming Industry?” Fret not, we have listed some popular ways with which you can penetrate the industry and stand out in the competitive market.
1. Mobile Gaming is Surpassing Console Gaming
Mobile games have become widespread and they may have a higher profit margin than console games. The reason is that almost everyone has access to a smartphone, but gaming consoles like PlayStation or Xbox need to be purchased exclusively to play, making them more expensive right out of the box.
Take a quick look at the mobile gaming industry analysis of some of the most well-known mobile games-
Income in 2021
Over $2.8 billion
An estimated $1.88 billion
An estimated $1.2 billion
Candy Crush Saga
An estimated $1.20 billion
Google Play Store downloads for these apps range from 50 million to a billion. Downloads are indeed a significant variable, but other factors are also important, like player retention, time spent in the game, and gamification levels.
2. Recurring Income from Microtransactions
Paying for mobile games is often overlooked at first glance. Mobile gaming is a big disappointment because of this. In light of the fact that 90% of all apps are free, people also expect mobile games to be free. There is, however, an immediate turn-off for many developers when they learn they will not get an upfront fee.
Mobile game developers are forced to follow the freemium model, wherein microtransactions are used to monetize items like outfits and weapons in the game.
3. Gaming Smartphones
Furthermore, gaming phones have become increasingly popular. Some features that regular phones do not offer are available on gaming phones. Dedicated gaming modes, cooling systems, shoulder triggers, and headphone jacks are all important to certain gamers, particularly competitive ones.
4. The Emergence of 5G
The 5G Mobile networks are now available in major cities all across the world. The 5G industry has much to offer, particularly to mobile gaming, even though its adoption isn’t as rapid as tech giants hoped. As a result of 5G, mobile games will have faster download speeds, lower latency, and short loading times in comparison to console games.
With 5G, you’ll have the option to try out more games before purchasing or downloading. Several titles are available as demos on the Play Store, but the selection is limited. In addition to increasing discoverability, 5G will speed up the process of finding the games you enjoy.
5. AR/VR Mobile Games
The advent of AR/VR in mobile games will revolutionalize the mobile gaming industry. Pokemon GO was the first AR game to be released in 2016 and it was a spectacular hit. It is the perfect example of the potential of AR and VR if it is executed correctly. There are a lot of AR/VR apps on the PlayStore but none have executed the technology to its full potential. It will be exciting to see what 2023 brings for AR/VR Gaming.
If you want to invest in the mobile gaming industry trends then you need to hire a custom game development company. The developers & designers from BR Softech are certified to build mobile game apps. As a prominent mobile game development company committed to mobile gaming app development, we deliver 2D to 3D interactive mobile games for both iOS and Android devices. Because we provide different gaming concepts and services compatible with all devices, we set ourselves apart from our competitors.
We offer outstanding mobile game applications that can reach millions of devices due to our extensive industry experience and access to the latest technologies. For more information, please contact us.
I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning, app, web & game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2012 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, and mobile game/software development intending to deliver outstanding digital outcomes.