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It’s natural for mobile gaming companies to be head down in planning and budgeting user acquisition and LTV efforts for the next quarter or two, but keeping an eye on the bigger picture can also be important strategically. According to NewZoo’s 11-page Casual Games Sector Report, by 2017 the global games market will be worth more than $100 billion (compared to $75.5 billion in 2013).
What are the factors shaping this rapid growth, and what do mobile app developers need to keep in mind when planning for 2016 and beyond? Read on:
The games market continues to accelerate globally, as the F2P model moves West and Western IPs spread East. Combined, the more saturated markets of Western Europe, Oceania and the US have made up 51% of the $75.5 billion global games market, with LATAM, MEA, Eastern Europe and Asia accounting for 49%.
By 2017 penetration of smartphones and online connectivity, in addition to an uptick in wealth and time spent on media will drive Asia and other growth markets to claim the 51% lead.
NewZoo splits out its gaming market analysis by screen, providing valuable insights into where developers should not only be advertising, but perhaps also adapting their games. According to the Casual Games Sector Report, computer screens have generated the lion’s share of global games revenue at 40%, trailed by entertainment screens and smartphones (“personal screens.”) However, by 2017 personal screens are expected to grow in share (from 17% to 22%), while the share held by entertainment screens is predicted to shrink (31% to 24%).
China wields a lot of influence, both in terms of gamer population and wildly successful Internet companies like TenCent that have infiltrated the social mobile gaming sector. Its revenues have grown upwards of 4X in a 5-year span, and displayed 38% YoY growth from 2012 to 2013 alone.
Looking at specific gaming segments in China, mobile is the leading channel of choice for both males and females, while MMOs show the largest disparity in adoption between the genders.
Not pictured, Boxed PCs/Macs lag most in player numbers, most likely because free titles are so readily available.
The proliferation of smartphones and tablets has given mobile gaming companies a wide population of users to attract and acquire. In 2013, mobile revenues accounted for 23% of the global games market. In 2017, they are expected to reach 34%.
While North America, Western Europe and Oceania are home to high numbers of mobile gamers, these Western markets have become saturated. As you can see in the chart to the right, growth is still taking place, but at a much slower rate compared to LATAM, MEA, Eastern Europe and Asia, where there is still plenty of room for mobile penetration and the increasing popularity of gaming to take hold.
For information on how to tap into this growing pool of mobile gamers, check out one of our most popular resources:
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