The social gaming market is estimated to be valued at US$ 31.61 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Social gaming refers to online games or mobile games that emphasize social interaction and connection through integration with social media platforms and profiles. Social gaming allows players to interact, compete and collaborate with other players in real-time through social networking platforms. The popularity of social media platforms has enabled growth in social gaming as players can easily find and connect with friends for playing games. This type of gaming provides an entertaining experience to users through interactive gameplays and allows players to accomplish common goals by teaming up and competing with friends.
Market key trends:
One of the key trends driving growth in the social gaming market is the increasing penetration of smartphones across the globe. Rising disposable incomes have enabled improved access to and affordability of smartphones even in developing regions. The advanced features and functionality of smartphones has boosted their adoption for various uses including social gaming. Smartphones allow players to access games anytime from any location and also help connect with other online players. According to Coherent Market Insights analysis, global smartphone users are estimated to reach around 6 billion by 2023. Widespread availability of high-speed internet networks is also supporting growth in smartphone gaming.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderately low as the social gaming market requires high capital investment to develop advanced gaming applications. However, opportunities for new niche players are still available.
Bargaining power of buyers: The bargaining power of buyers is high as social gamers can switch between games easily based on availability of desired features and engagement. Buyers have low switching costs.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as social gaming companies depend on technology providers, game engine developers and other third-party service providers. However, presence of many suppliers ensures fair competition.
Threat of new substitutes: The threat of new substitutes is high due to constant innovation in gaming platforms, virtual reality and evolution of esports.
Competitive rivalry: is intense among existing players.
SWOT Analysis
Strengths: Social gaming provides engagement and entertainment at low costs. Existing large player base and branded IPs offer a competitive edge to major players.
Weaknesses: Over-reliance on few popular games exposes business model risks. Data privacy and in-app monetisation concerns impact player trust.
Opportunities: Growth of mobile gaming in emerging markets. Integration of advanced technologies like AR/VR provides new experiences.
Threats: Stringent regulations around loot boxes and gambling-like mechanics. Rising competition from YouTube and streaming platforms.
Key Takeaways
The Global Social Gaming Market Demand is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing internet and smartphone penetration. The social gaming market size for 2023 is estimated to reach US$ 31.61 Bn.
Regional analysis: The Asia Pacific region dominates the social gaming market currently due to high mobile usage in countries like China and India. The region is estimated to grow the fastest during the forecast period owing to ongoing digital transformation and rising disposable incomes in emerging economies.
Key players operating in the social gaming market are Zynga, Inc., Wooga GmbH, Playtika Ltd., King, Tencent Holdings Ltd., Electronic Arts, Inc., Renren Inc., CrowdStar, Booyah Inc., and Social Point. Zynga and Tencent have established strong network effects due to their popular franchises like Words With Friends and Honor of Kings respectively. Smaller developers focus on niche genres and communities to challenge incumbents.