Market Trends of Subscription-Based Gaming Industry
The Mobile Gaming Segment is Expected to Hold Significant Market Share
- Mobile gaming has emerged as a significant segment in the gaming subscriptions market due to its accessibility and widespread adoption. These subscriptions offer access to a curated selection of premium mobile games for a monthly or yearly fee. Subscribers can enjoy ad-free gaming experiences with full access to all features and content of the included games.
- Cross-platform subscriptions have become popular with the increasing integration of gaming ecosystems across multiple platforms. Subscribers can access games on their mobile devices and other platforms such as consoles, PCs, or streaming devices that offer seamless gaming experiences.
- Certain mobile games offer a multiplayer experience that requires a subscription for access to online multiplayer modes, exclusive tournaments, or additional social opportunities for competitive play.
- Some mobile gaming subscriptions focus on educational or learning-oriented games, catering to parents and educators looking to engage their children in fun and educational activities on mobile devices. These subscriptions often include various educational games and interactive content designed to enhance learning outcomes.
- The increasing number of smartphone users globally provides a significant growth opportunity for subscription-based mobile game services, as they offer a convenient, affordable, and diverse gaming experience to a broad audience. According to the GSMA, by 2030, North America’s smartphone adoption rate is expected to increase to 90%, with regions like CIS and Asia-Pacific projected to register more significant growth.
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Asia-Pacific is Expected to Witness Significant Growth in the Market
- Asia-Pacific has witnessed significant advancements in internet infrastructure, with the widespread availability of high-speed broadband and 5G networks in urban and rural areas. This improved connectivity enables seamless streaming of cloud-based games with minimal latency and buffering, thus driving the demand for subscription-based gaming in the region.
- China boasts the world's largest gaming population, with millions of gamers across various age groups and demographics. According to the industry association CGIGC, in July 2023, China's video game player population grew to 668 million. The popularity of gaming as a form of entertainment, social activity, and competitive sport fuels the demand for diverse gaming experiences offered by subscription-based gaming platforms.
- The Chinese government has supported technological innovation and digital entertainment industries, including gaming. Policies and initiatives promoting the development of cloud infrastructure, gaming content, and digital services contribute to the growth of the gaming subscriptions market in China. For instance, in December 2023, the National Press and Publication Administration (NPPA) approved 105 new online games via WeChat, describing the move as a show of support for the prosperity and healthy development of the online game industry.
- In December 2023, according to the Ministry of State for Trade and Industry, Singapore had the potential to become a hub for gaming and esports in Asia, where 45% of the world's gamers live. Almost a third of Singapore's population class themselves as gamers, making the country a lucrative market for subscription-based gaming.
- The growing demand for subscription-based gaming in the region is fueled by advanced internet infrastructure, a strong gaming culture, technological innovation, government support, strategic partnerships, and changing consumer preferences.
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