Market Forecast reports and market data
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Mobile AR/VR/MR – Where's the market headed and what do the numbers look like?
The mobile augmented reality (AR), virtual reality (VR), and mixed reality (MR) market represents the fourth wave of consumer technology, characterized by rapid growth and increasing scale.
- Mobile AR is the dominant growth sector, projected to reach a 3.5 billion user base and $85–$90 billion in revenue over the next five years, significantly outpacing VR.
- VR is forecast to remain an entertainment-focused niche, reaching 50–60 million units and $10–$15 billion in revenue within five years.
- Asia is set to become the largest regional market, eventually accounting for over 50% of global AR/VR revenue, with China leading in mobile AR and the U.S. maintaining a lead in VR.
Fireside Chat: Where next for mobile?
The mobile gaming industry is currently defined by a fundamental shift toward social connectivity and the convergence of core gaming experiences.
- The mobile gaming industry is shifting toward a post-platform model where success is defined by community engagement and seamless cross-platform accessibility rather than hardware-specific ecosystems.
- Growth is currently sustained by hardware advancements, the expansion of emerging markets like India, and the widespread adoption of cross-platform play.
- Artificial intelligence is becoming a critical tool for developers to personalize user experiences and optimize internal development workflows.
2018 Global Games Market Report: Trends, Insights, and Projections Toward 2021
The 2018 Global Games Market Report provides a comprehensive analysis of the gaming industry’s rapid expansion, projecting total global revenues to reach $137.9 billion in 2018.
- The global games market is projected to reach $137.9 billion in 2018, driven by a strategic shift from product-based sales to long-term engagement models.
- Mobile gaming is the industry's dominant segment, generating $70.3 billion and accounting for 51% of total global revenue.
- The Asia-Pacific region remains the largest market, contributing 52% of total global gaming revenue.
Games in 2020 – The future of entertainment, esports and beyond
The presentation explores the evolution of gaming toward a future defined by cloud-based infrastructure, interactive spectating, and the convergence of players and viewers.
- The gaming industry is transitioning from local, hardware-dependent play to a cloud-native ecosystem that utilizes server-side rendering to bypass local processing limitations.
- The 'Experience 3.0' model dissolves the traditional barrier between passive viewers and active players, allowing audiences to influence live game events through real-time inputs.
- 5G technology is a critical infrastructure requirement for this shift, providing the low-latency connectivity necessary to offload complex compute tasks from consoles to the cloud.
M&A in the games sector – 2017 recap and 2018 predictions
The gaming industry experienced a period of stabilization in 2017, following the record-breaking performance of 2016.
- The mobile gaming sector remains the primary driver of industry growth, consistently outpacing both PC and console segments.
- Publicly listed Nordic companies, including Stillfront, Paradox, and MTG, have emerged as aggressive acquirers of small-to-mid-sized studios, providing a new exit path for developers.
- Valuation multiples for large, mature companies are holding steady at approximately three times sales and eleven times EBITDA, typically executed via full cash payments.
Global Mobile Market Report 2018
The global mobile market is undergoing a significant transformation characterized by a shift toward immersive, competitive gaming experiences and the integration of high-engagement subscription services.
- Mobile gaming generated $70 billion in 2018, representing 76 percent of the $92.1 billion total global app store revenue.
- Global smartphone adoption is projected to reach 3.8 billion users by 2021, with the Asia-Pacific region serving as the primary driver of market penetration.
- The mobile market is shifting toward immersive, competitive gaming experiences and subscription-based service models.
2018 Global Esports Market Report
The 2018 Global Esports Market Report provides a comprehensive analysis of the esports industry as it transitions toward a mature, multi-billion-dollar business model.
- Global esports revenue is projected to reach $906 million in 2018, marking a 38.2% year-on-year increase.
- Brands drive 77% of total market revenue, signaling a shift from experimental spending to long-term sponsorship commitments.
- Media rights represent the fastest-growing revenue stream, with a projected compound annual growth rate of 49.8% through 2021.
The present and future of HTML5 games
The HTML5 gaming sector is emerging as a significant mobile-first industry, driven by the integration of portable, browser-based games into major social networks such as Facebook, WeChat, and Vkontakte.
- HTML5 has become the primary cross-platform mobile development standard following the phase-out of native Flash support, prioritizing instant accessibility by removing app store download friction.
- Playable ads are a dominant marketing format, with industry reports indicating that over 45% of modern mobile advertisements now utilize this interactive approach.
- HTML5 games serve as high-impact viral marketing tools; for example, a branded game on iFunny achieved 1.5 million plays and 60,000 likes within 24 hours.
Where is the mobile games market going next?
The mobile gaming industry is transitioning from a period of rapid, creative chaos into a phase of long-term stability characterized by market consolidation and the dominance of established brands.
- The mobile gaming market is transitioning into a mature, winner-takes-all landscape where established incumbents with high player investment are increasingly difficult for new entrants to displace.
- Strategic success is shifting toward brand equity and established intellectual property, mirroring the film industry's reliance on sequels and franchises to mitigate the financial risks of original development.
- Market monetization is bifurcated between high-volume, ad-based games and high-grossing titles that rely on in-app purchases and continuous content updates to drive lifetime value.
Game video streaming: Your game is being watched more than it is being played
The gaming industry is undergoing a fundamental shift where the consumption of video games is increasingly defined by watching others play rather than direct participation.
- Video streaming currently accounts for 30% of total game consumption and is projected to surpass active gameplay within five years.
- Games must be designed as broadcast-ready entertainment to ensure long-term community engagement, as viewership is becoming a primary driver of market success.
- Major franchises like Grand Theft Auto have achieved over 3.3 billion hours of watch time on YouTube, demonstrating that game viewership can exceed the reach of top-tier traditional television media.
The current M&A market for games & predictions for 2017
The mergers and acquisitions landscape in the games industry experienced a record-breaking year in 2016, characterized by an unprecedented volume of mega-deals.
- The 2016 games industry M&A market reached a record $24.1 billion in disclosed deal value, nearly doubling the previous 2014 record of $12.5 billion.
- Four mega-deals, including Tencent’s acquisition of Supercell and Activision’s purchase of King, accounted for over 80% of the total 2016 market value.
- Market consolidation is being driven by a 'land grab' strategy where large publishers acquire studios to combat rising user acquisition costs and leverage live-ops capabilities.
Casual Games Sector Report: 2017
The global games market is undergoing a period of rapid expansion and structural transformation, with total revenues projected to exceed $100 billion by 2017.
- The global games market is projected to grow at a 12.5% CAGR, exceeding $100 billion in revenue by 2017, with growth driven by emerging regions including Asia, Eastern Europe, Latin America, and the Middle East/Africa.
- Mobile gaming is the fastest-growing segment, with revenues expected to rise from over $17 billion in 2013 (23% of the market) to over $35 billion by 2017 (34% of the market).
- The number of mobile gamers is forecast to increase from 1.33 billion in 2013 to 1.82 billion by 2017, with significant growth occurring in both mature and emerging markets.