Mobile Gaming Market to Grow by USD 82.4 Billion (2025-2029), Rising Popularity of Multiplayer Games Boosts Growth, Report with the AI Impact on Market Trends - Technavio

NEW YORK, Jan. 30, 2025 -- Report on how AI is redefining market landscape - The global mobile gaming market size is estimated to grow by USD 82.4 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 11.3% during the forecast period. Rising popularity of multiplayer mobile games is driving market growth, with a trend towards growth in availability of free-to-play mobile games. However, increasing cost of mobile gaming development poses a challenge. Key market players include Activision Blizzard Inc., Behold Studios, CyberAgent Inc., DeNA Co. Ltd., Electronic Arts Inc., Epic Games Inc., GungHo Online Entertainment Inc., Larva Game Studios, Microsoft Corp., Modern Times Group MTG AB, NetEase Inc., Netmarble Corp., NEXON Co. Ltd., Niantic Inc., Nintendo Co. Ltd., Sega Sammy Holdings Inc., Square Enix Holdings Co. Ltd., Tencent Holdings Ltd., The Walt Disney Co., and Ubisoft Entertainment SA.

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Market Driver

The mobile gaming market is experiencing significant growth, driven by increased advertising investment in the gaming industry. Smartphones are at the heart of this trend, with product differentiation and advertisement strategies capitalizing on smartphone hardware capabilities. Unity Technologies and other game engines enable developers to create high-quality games, but battery drain and screen resolution are key challenges. 5G and 5G connectivity are revolutionizing mobile gaming, offering ultra-low latency and higher data speeds. Geopolitical tensions and economic conditions impact mobile subscribers' access to cellular services. In-game purchases and cloud gaming services, like Amazon App Store and Google Play, are driving revenue growth. Smartphone penetration and smartphone ownership continue to rise, particularly among digital frontrunners with higher income levels. Mobile chipsets and battery power are crucial for running AAA-caliber mobile games, including Action or Adventure, Casino, Sports, Role Playing, and Casino gambling. Platforms like Android and iOS dominate the mobile gaming sector, with Google Play Store, Apple App Store, and Amazon App Store leading the way. In-app purchases and advertisements are essential monetization strategies, with social connectivity and multiplayer gaming experiences enhancing user engagement. Smart devices, including tablets and handheld gaming devices, are expanding the mobile gaming landscape. The mobile gaming revolution is transforming the industry, attracting potential players and challenging traditional gaming formats like PC games and consoles. 

Free-to-play mobile games, part of the freemium business model, offer gaming providers a platform to showcase their products and convert free users into paying customers. These games are accessible for download on the Google Play Store and Apple App Store at no cost. In-game transactions involve the use of virtual currencies to purchase virtual goods, such as clothing, models, and other items. Users may opt to spend real money on virtual products, including coins, magic wands, houses, guns, and swords. Notable free-to-play mobile games include Clash of Clans, Pokemon GO, The Sims FreePlay, and Brawl Stars. 

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Market Challenges

• The mobile gaming market is a rapidly growing industry, with smartphones becoming the go-to device for gaming. However, there are several challenges for game developers and publishers. Advertising investment is crucial for reaching potential players, but smartphone hardware capabilities, such as battery drain and screen resolutions, can impact advertising strategies. Unity Technologies and other game engines help overcome performance limitations, but 5G connectivity and ultra-low latency are essential for high-quality mobile gaming experiences. Geopolitical tensions and economic conditions can also impact the market. In-game purchases and cloud gaming services offer new revenue streams, but battery power and processing power are key considerations for mobile chipsets. With the increasing penetration of smartphones and 5G technology growth, the mobile gaming sector is projected to surpass PC games. Game publishers and indie developers must adapt to these challenges and leverage social connectivity, multiplayer gaming experiences, and personal digital assistance to engage players. Platforms like Google Play Store, Apple App Store, Amazon App Store, and others play a crucial role in app discovery and monetization through in-app purchases and advertisements. The future of mobile gaming lies in the convergence of smartphone technology, wireless bandwidth, and the mobile revolution.
• The mobile gaming market experiences a significant rise in development costs due to increasing consumer demand for enhanced game content. Complex graphics, custom characters, intricate objects, and advanced visual effects necessitate the employment of skilled artists and use of specialized software. Consequently, expenses related to art creation have escalated. To stay competitive, mobile gaming companies hire actors from the film industry to voice virtual characters, further increasing production costs.

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Segment Overview

This mobile gaming market report extensively covers market segmentation by

1. Platform 
   • 1.1 Online
   • 1.2 Offline
2. Type 
   • 2.1 Casual gaming
   • 2.2 Professional gaming
3. Geography 
   • 3.1 APAC
   • 3.2 North America
   • 3.3 Europe
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Online- The mobile gaming market's online segment is experiencing significant growth due to the increasing usage of mobile devices and internet penetration worldwide. Many online mobile games are free to download from application stores, allowing gamers to play from anywhere, anytime. Social interaction is a key factor, with games like chess enabling community building and chat features. Massively multiplayer online (MMO) games, which allow multiple players to game simultaneously, also contribute to the segment's growth. In-app purchases and microtransactions for virtual goods, such as weapons, potions, and avatars, are a significant revenue driver. Popular games like Candy Crush Saga and Pokémon GO utilize this business model. With more time spent on mobile devices for gaming than on consoles or PCs, the likelihood of in-app purchases is high, fueling the online segment's expansion and the overall mobile gaming market's growth.

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Research Analysis

The mobile gaming market is experiencing explosive growth, driven by the widespread use of smartphones and tablets. Advertising investment in the gaming industry, with advertisers recognizing the vast potential audience reach. Product differentiation is key, as developers leverage advanced smartphone hardware capabilities like Unity Technologies to create gaming experiences. 5G and ultra-low latency are revolutionizing mobile gaming, offering faster downloads and smoother gameplay. However, challenges remain, such as battery drain and geopolitical tensions impacting app stores like Google Play Store and Apple App Store. In-app purchases and social connectivity are essential for monetization and multiplayer gaming experiences. Game developers, from indies to industry giants like Electronic Arts, continue to innovate, with cloud gaming services like Google Play offering hyper-scale cloud capabilities. Screen resolutions and smartphone penetration also influence the market's direction.

Market Research Overview

The mobile gaming market is experiencing explosive growth, fueled by the widespread adoption of smartphones and the advancement of smartphone hardware capabilities. Unity Technologies and other game engines enable product differentiation, while advertisement strategies cater to mobile subscribers. Advertising investment in the gaming industry is on the rise, with in-game purchases and cloud gaming services driving revenue. 5G and hyper-scale cloud capabilities offer ultra-low latency and higher data speeds, enhancing the mobile gaming experience. Geopolitical tensions and economic conditions may impact the sector, but the mobile gaming sector continues to thrive, with game developers and publishers releasing AAA-caliber mobile games across various genres, including Action or Adventure, Casino, Sports, Role Playing, and Casino gambling. The mobile gaming market is a dynamic and innovative space, with new technologies and platforms, such as Android and iOS, driving growth and engaging potential players, including Tablet users and Smartphone owners.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Platform
  • Online
  • Offline
• Type
  • Casual Gaming
  • Professional Gaming
• Geography
  • APAC
  • North America
  • Europe
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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