ReportShorooq Partners
Gametech Report Q1 2023: Global & MENAP Outlook
1 Jan 202398 pages~91 min full read
The MENAP gaming market is projected to reach $2.8 billion by 2026, growing at a 10% CAGR driven by mobile adoption and esports.
See it on page 23Generative AI in gaming is forecast to reach a $7.1 billion valuation by 2032, expanding at a 23.3% CAGR.
See it on page 17Global cloud-gaming infrastructure is projected to grow 250% by 2030, supported by the fact that 68% of studios already utilize AWS for Games.
See it on page 15Mobile-first development remains the industry standard, with 70% of developers prioritizing data analytics and 50% investing in AI tools.
See it on page 27In-app purchase revenue grew 28% year-over-year to $374.1 million, while advertising revenue increased by 6.1%.
See it on page 31Investment in the MENAP region is accelerating, with seed-stage funding reaching $15 million across 20+ startups, bolstered by dedicated vehicles like SHFT’s $15 million Gametech Fund.
See it on page 39Private deals currently account for 68% of total investment activity in the gaming sector.
See it on page 19The report argues that the MENAP region is poised to become a major hub for gaming, driven by rapid mobile‑gaming adoption, esports growth and an expanding local startup ecosystem. It identifies talent development, IP creation and cross‑industry collaboration as key levers for sustained expansion, while noting challenges such as technical upskilling, content localisation and stakeholder coordination.
Globally, the gaming market is shifting toward cloud‑based development and AI‑powered tools, with 68 % of studios already using AWS for Games and a projected $7.1 bn market by 2032. Generative AI is expected to reach a $7.1 bn valuation in gaming by 2032, growing at 23.3% CAGR, and private deals now account for 68 % of total investment activity. In MENAP, the market is projected to hit $2.8 bn by 2026 at a 10% CAGR, underpinned by mobile adoption and esports expansion.
Mobile‑first development dominates, with 70 % of developers prioritising data analytics and 50 % investing in AI tools. In‑app purchases, advertising and subscriptions drive revenue, with IAP rising 28 % YoY to $374.1 million and ad revenue up 6.1%. Platform shifts such as iOS SKAN 4.0 and Android privacy changes are reshaping monetisation strategies, while cloud‑gaming infrastructure is projected to grow 250 % by 2030.
Investment flows reflect these trends: seed‑stage funding in MENAP has reached $15 million across 20+ startups, and international firms target the region for free‑to‑play and Web3 opportunities. Funds like SHFT’s $15 million Gametech Fund aim to provide capital, expertise and networking to help local studios compete globally. The overall outlook indicates a 6.1% YoY revenue growth for global and MENAP gaming, with a 15 % rise in mobile gaming and a 43 % share captured by platform‑based titles.
