Mobile games market

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According to estimates by Newzoo, the global value of video games industry in 2018 totaled nearly USD 135 bn, a c. 10.6% increase compared to 2016. CAGR for the games industry in 2016-2021 is estimated at c. 10.2%, reaching USD 174 bn in 2021. This growth rate will be higher than OECD forecasts for real GDP growth for the biggest countries in terms of game sales value.

According to analytical reports, Asia-Pacific region is the biggest geographical region for games, accounting or USD 61.1 bn in 2017 already, which represented c. 50% of the entire gaming market. North America is the second biggest market, worth USD 29.7 bn, which represents 24.4% of the market value.

Mobile games for smartphones and tablets had the biggest impact on market growth in 2018, as their value rose by 12.9%. Newzoo projection indicates that in 2019 smartphones will account or 39.2% of the market, i.e. will be the biggest category among all segments. Mobile games, defined as those for smartphones and tablets, will represent 48.6% of games market value. This trend is due, among other factors, to changes in game distribution model. Gamers preferences are turning towards digital distribution, departing from the traditional physical distribution model. This fact boosts the popularity of free-to-play games, those where the producer offers users access to games for free, while revenues come from micro-payments and ads.

The above chart shows the global value of the games market in 2016-2018 along with forecasts for 2019-2021. Division into specific segments was made based on the platform for which the game is designed.

Chart. Value of the games market in 2016-2021P (USD, bn).

Source: Newzoo, Global Games Market Report, October 2018 Quarterly Update, chart: own resources

The group operates in the mobile games segment, which are offered on digital distribution platforms. It is the fastest growing segment of the games market. In 2017-2018 mobile games market was worth USD 56 bn and USD 63 bn respectively, accounting for 45.9% and 46.8% of the market’s overall value. In 2018 value of the mobile games segment rose by over 2.8% compared to 2017, while the entire games market was up by 10.6%. At the same time, with its 46.8% share, mobile games were by far the biggest segment of the games market. Newzoo market analysts estimate that mobile games segment will exceed 515% market share already in the year 2020, with the expected market value of nearly USD 161 bn.

Chart. Value of the mobile games market in 2017-2021P (USD, bn).

Źródło: Newzoo, chart: own resources