14 Sep, 2022 Mobile gaming to represent over 50% of revenues in what will be a $470 billion gaming industry by 2030, says GlobalDataPosted in Thematic Intelligence
Mobile gaming is where the money is, according to GlobalData, which notes that these games will represent over half of gaming industry revenues in 2030. The leading data and analytics company presents a striking chart from its Video Games Research report showing the continued dominance of mobile gaming—which includes games played on both smartphones and tablets—compared with other traditional categories such as PC and console. The report also highlights the immense projected growth of the gaming industry, which is expected to rise from $197 billion in 2021 to $470 billion by 2030.
Rupantar Guha, Principal Analyst in Thematic Intelligence team at GlobalData, comments: “Mobile gaming is already bigger than the console and PC gaming markets combined, contributing nearly 57% of global video game revenue in 2021, and this dominance is only set to continue. Due to its popularity and lucrative revenue opportunities, traditional console and PC game publishers such as Activision Blizzard and Electronic Arts are increasingly focused on mobile gaming. Further, the increased availability of 5G networks in the coming years will drive more users towards mobile gaming, especially multiplayer titles, which, in turn, will boost the growth of mobile esports.”
While mobile gaming will dominate, cloud gaming is expected to be the fastest growing segment in the industry, expanding from approximately $2 billion in 2021 to more than $30 billion by 2030.
Guha continues: “Cloud gaming—which involves hosting games in the cloud and streaming them to connected devices—will fundamentally change the video games industry over the next 10 years. However, the market is at a very early stage. Cloud gaming currently accounts for just 1% of global video games revenue, rising to 6% by 2030. Saying that, competition is intensifying, drawing in tech giants such as Sony, Google, Tencent, Microsoft, Nvidia, Meta, and Amazon, as well as telcos such as Deutsche Telekom, Sunrise, KT, and China Mobile to the space.”
Competition in the video game market more widely is especially high, with GlobalData’s report describing it as an “ideal example of a hypercompetitive market”. With low barriers to entry and lucrative revenue opportunities, the number of players in the market is continuously increasing.
Guha adds: “The gaming industry is in the throes of a transformation driven by themes such as 5G, augmented reality (AR), virtual reality (VR), esports, cloud gaming, and the metaverse. As these themes mature, competition will intensify among traditional game publishers, tech giants, and companies in other sectors (e.g., retail and tourism). As a result, several leading game publishers will become M&A targets, with tech giants the likely acquirers.”