The video game industry rode a massive pandemic wave over the past few years as people flocked to interactive entertainment while stuck at home.
However, the party paused in 2022 amidst financial uncertainty and a slump, now slowly getting back to its feet and forcing a market correction.
Recently data.ai predicted the forecast for mobile app and gaming markets in 2024 and shows some positive signs for the gaming industry in the upcoming year.
As per the report, overall mobile gaming spending should recover in 2024 after stabilizing this year. Several major markets plus resurgent genres look to Ignite the next industry expansion.
Let’s investigate the data and trends fueling this forecasted gaming growth comeback!
2023 Mobile Gaming Spend Cool-off Before 2024 Re-Ignition
After hitting astronomical highs of $115+ billion during lockdown peaks, consumer gameplay spending slowed off the pace in 2022.
Data.ai expects that cooldown to continue in 2023 with an extra -3% year-over-year decline to $107.5 billion total.
But the lull sets the stage for a roaring return – their models call for 4% aggregate gaming spend growth in 2024 to $111.4 billion.
That revival falls just short of the all-time COVID-era crest but still signals the industry’s enduring strength.
With critic claims about gaming’s “collapse” proving premature, what market forces does data.ai expect to spark the imminent comeback?
US and Asian Markets Positioned to Re-accelerate Spending
Forecasters highlight the United States as the dominant driver of 2024 gaming gains. American players alone should contribute 40% of that year’s total global spending increase.
Japan ranks the next heaviest hitter at 16% of new gaming revenues ahead of South Korea, Taiwan, and major European markets like Germany and the United Kingdom.
The emphasis on established gaming hotspots across North America and Asia underlines the entertainment medium’s continued penetration into mainstream culture. As adoption expands in these lucrative regions, even slight upticks yield big monetary momentum.
And with console leaders PlayStation, Xbox, and Nintendo all based stateside or in Japan, new hit software there paves profit potential.
RPGs, Match-3, and Party Games Called Out as Top-Grossing Genres
Equally telling, data.ai’s number-crunchers predict specific gameplay styles will fuel disproportionate influxes by 2024.
Epic roleplaying adventures (RPGs) like Genshin Impact and Honor of Kings should drive nearly 1 out of every 5 dollars spent industry-wide they determine. And the casual appeal of puzzle/match games such as Candy Crush will account for nearly identical revenue impact.
Party games rounding out the top forecasted money-makers also underline gaming’s expanding accessibility. As more demographics get into video games mixing social play options with familiar formats, their comfort converts into serious sales.
Combined, RPGs, match-3, and party games are expected to be behind 40 cents out of every incremental dollar spent by 2024. That’s the kind of multiplier effect needed to spur the predicted 4% overall rebound.
What Could Disrupt Gaming’s Anticipated Growth Trajectory?
Of course, predicting industry gains over two years out holds challenges. And data.ai acknowledges potential headwinds that could disrupt gaming’s anticipated ascent.
- Macroeconomic impacts on discretionary spending: The global economy faces uncertainty due to factors like inflation and interest rate hikes. This could lead to consumers tightening their belts and reducing their spending on entertainment, including mobile gaming.
- Crackdown on fingerprinting in advertising: Recent regulations aimed at protecting user privacy may impact targeted advertising, a key revenue driver for mobile games. Developers will need to adapt their monetization strategies to navigate these changes.
- Growth of alternative app store distributions: The emergence of alternative app stores like Epic Games Store and Amazon App Store could challenge the dominance of Google Play and Apple App Store. This could lead to increased competition and fragmentation in the market.
- Regulations on gaming: Governments around the world are increasingly scrutinizing the gaming industry, particularly in areas like loot boxes and age-gating. These regulations could make it more difficult for developers to operate and reach their target audience.
Looking Ahead
Overall, the data paints a cautiously optimistic picture for the future of mobile gaming. The market is expected to rebound in 2024, driven by growth in key regions and popular genres.
However, navigating potential headwinds like economic uncertainty and regulatory changes will be crucial for continued success.
By adapting to evolving trends and remaining adaptable to the changing landscape, the mobile gaming industry can ensure its continued growth and captivate players for years to come.
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