New report by Juniper, entitled Mobile & Handheld Games: Discover, Monetise, Advertise 2014-2019, brings the key facts and latest trends from mobile gaming market, ranging from business models and monetisation strategies to increasing tablet penetration rates
The research company already announced last year that mobile will be “primary hardware” for gaming by 2016, hitting $9 billion in revenues, with tablets as main drivers fro in app purchases. Let’s take a closer look at the main results of this comprehensive analysis.
Mobile Games Trends & Market Overview
The key trend identified by Juniper is positioning of mobile as the key software and device for games, in the market dominated by Samsung and Android. Other trends and market drivers could be summed up in the following points:
- Free To Play games will take over the gaming market and native advertising will become mainstream
- One in seven people will own a tablet by 2016
- Games will become increasingly social
- Largest part of incomes will come from digitization of mobile payment methods
- Emerging markets in Asia will continue to be a breeding ground for gamers
When it comes to revenues, mobile games market on smartphones will be worth almost $26 billion by 2019, growing at CAGR of 9,9 % from 2014, with close to 87% coming from Asia, Europe and North America. On the other hand, revenues from tablet will reach $13 billion, with CAGR of close to 30 % form 2014. China and Far East will be most monetizable user-base for developers, with 51 % of global revenues. Interesting data comes also for the feature phones gaming market: important decrease in all key regions for the next 5 years period, with revenues dropping to $300 billion by 2019; most noticeable decrease will be Latin America and Asia, owed of course to the smartphone penetration, while in Europe and North America the feature phone gaming market will completely disappear.
Gaming is online, mobile and in the cloud
The analysis moreover confirms that the shift toward online, mobile and the cloud, for the games industry has concluded in 2014, and that future goals will not be broadening the user base but focusing on better user experience and client retention and monetization:
The future mobile game needs to put the user in the spotlight, ensuring the possibility of playing anywhere, anytime, on multiple device types, with social games enabling community creation.
By 2017 there will be 64.1 billion downloads of game apps to mobile devices, compared to the 21 billion downloaded in 2012. By 2019 it is expected that over 70 billion games will be accessed on smartphones, more than 15 million being Social & Casual games. When it comes to in-game purchases will become one of the preferred business models for developers, especially for Social & Casual gaming, with the increase of over 30 % of the gamers who purchase digital goods in-game, by 2019.
For more information on the monetization strategies, portable gaming device analysis, industry benchmark forecasts please visit http://www.juniperresearch.com/reports.php?id=757