ReportSensor Tower
The State of Mobile Gaming: An Analysis of Mobile Gaming Market Trends and Top Titles in the U.S., Europe, and Asia
1 Jan 202178 pages~69 min full read
The mobile gaming market is bifurcated between mature markets like the U.S., Japan, and China, which generate the bulk of global revenue, and emerging regions like India and Brazil, which drive the majority of download volume.
See it on page 11Hyper-casual games are the fastest-growing segment, surging from 757 million installs in Q1 2018 to over 3.4 billion in Q1 2021, representing more than 30% of all mobile downloads.
See it on page 54Freemium models are the industry standard, accounting for 99% of App Store revenue, while subscription models remain a minority, utilized by only 29% of top U.S. games.
See it on page 60Asia remains a massive revenue engine, generating $12 billion in Q1 2021, even as China experienced a 44% year-over-year decline in installs alongside rising per-user spend.
See it on page 33Advertising revenue is heavily concentrated in puzzle and hyper-casual genres, which captured over 30% of total ad spend across major networks in 2020.
See it on page 67The U.S. remains the primary revenue market, contributing 28% of global spend in 2020 and generating $7 billion in Q1 2021 alone.
See it on page 6Major publishers like Playrix and Supercell dominate European revenue, while titles such as PUBG Mobile and Honor of Kings maintain top positions in global download and revenue charts.
See it on page 26The analysis demonstrates that the mobile‑gaming market expanded dramatically during the COVID‑19 pandemic, with global quarterly revenue reaching $33 billion in Q2 2020 and downloads climbing 39 % to 16 billion. The United States remains the dominant spend market, contributing 28 % of worldwide revenue in 2020 and generating $7 billion in Q1 2021, while emerging regions such as India (12 % of global installs) and Brazil drive download growth but lag in monetization. Hyper‑casual and shooter titles—PUBG Mobile, Garena Free Fire, Subway Surfers—consistently occupy top download positions worldwide.
In 2020 and early 2021, revenue concentration persisted in mature markets (U.S., Japan, China), yet fast‑growing regions like Europe and Southeast Asia presented expanding opportunities. European revenue was led by Playrix ($700 M) and Supercell ($600 M), with Israeli publishers also in the top‑10, while installs remained near pandemic highs at roughly 4 billion in Q1 2021. In Asia, India’s explosive download growth (nearly 3 billion installs in Q3 2020) and Indonesia’s 26 % YoY rise positioned the region as the dominant market, with PUBG Mobile and Honor of Kings topping download charts. Despite a 44 % YoY decline in Chinese installs, mobile‑game spend there continued to rise, contributing to Asian revenue of $12 billion in Q1 2021.
Genre‑level insights reveal hyper‑casual games as the fastest‑growing segment, expanding from 757 million installs in Q1 2018 to over 3.4 billion by Q1 2021 and accounting for more than 30 % of all mobile downloads that quarter. Freemium models dominate monetization, with 99 % of App Store revenue derived from free titles; subscription adoption remains a minority (≈29 %) among top U.S. games. Advertising revenue is heavily concentrated in puzzle and hyper‑casual titles, which captured over 30 % of ad spend across major networks in 2020. Playrix led overall ad spending, especially for its puzzle franchises, while Zynga’s acquisition of Rollic Games spurred a sharp increase in hyper‑casual ad spend on AdMob and Facebook.
Overall, the data underscore a mobile‑gaming ecosystem where mature markets generate the bulk of revenue, emerging regions drive download growth, hyper‑casual and battle‑royale titles dominate user acquisition, and freemium monetization models—supported by advertising—remain the primary revenue engine.
