The mobile gaming market is projected to grow from $141.71 billion in 2023 to $300.47 billion by 2028, with a compound annual growth rate (CAGR) of 16.22% during the forecast period. The COVID-19 pandemic has had a positive impact on the gaming industry, as mobile games provided much-needed entertainment and social connection during global quarantines.
In recent years, there have been significant changes in mobile game development. Game brands have increased their advertising investment to attract more users and gain market share. One cost-effective way to reduce development costs is through early click-through rate (CTR) testing, especially in the hyper-casual game sector.
The expansion of the gaming industry worldwide has been fueled by the development of mobile games. Social media platforms like Facebook and Instagram are developing innovative mobile games to differentiate their products and enhance their advertising strategies.
Smartphone hardware capabilities have also improved, with better chipsets providing higher performance and battery efficiency. The introduction of 5G technology has enabled faster speeds and low latency, resulting in high-quality mobile games.
Despite geopolitical tensions, mobile gaming penetration continues to increase globally. For example, in Iran, with a population of 82 million and a smartphone penetration rate of 35%, there are more than 30 million active mobile gaming players.
In-game purchases, such as buying additional privileges within games, are a significant revenue source for the mobile gaming industry. The flexibility of in-game payment methods contributes to the growth of mobile gaming revenues worldwide.
Cloud gaming services, powered by cloud capabilities and streaming media services, are driving the next generation of interactive and immersive gaming platforms. The proliferation of edge data centers further facilitates the growth of mobile gaming.
The increasing smartphone penetration rate is expected to drive market growth. Smartphones provide a convenient and accessible gaming platform, attracting casual gamers who may not invest in dedicated gaming consoles or PCs. The availability of app stores makes it easier for developers to distribute and monetize their mobile games.
North America is one of the largest and most lucrative markets for mobile gaming. The region has a high population of smartphone users, favorable economic conditions, and a strong gaming culture. 5G connectivity is expected to drive growth in the North American market, with higher data speeds and low latency.
Overall, the mobile gaming market is set to experience substantial growth in the coming years, driven by technological advancements and increasing smartphone penetration across the globe.