Online Microtransaction Global Market Report 2024

The online microtransaction market size has grown rapidly in recent years. It will grow from $73.27 billion in 2023 to $80.88 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historical period can be attributed to the expansion of the gaming industry, the digitalization of entertainment, the adoption of the free-to-play model, the popularity of virtual goods and cosmetics, and the proliferation of mobile gaming.

The online microtransaction market size is expected to see rapid growth in the next few years. It will grow to $121.18 billion in 2028 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to the expansion of the digital economy, the continued dominance of the free-to-play model, the integration of live streaming and esports, the utilization of blockchain and digital assets, and the incorporation of personalized and social interaction features. Major trends in the forecast period include cross-platform monetization, integration of blockchain and cryptocurrency, the emergence of social commerce and virtual marketplaces, offerings focused on personalization and customization, and increased regulatory scrutiny with a focus on consumer protections.

The anticipated growth in the online microtransactions market is expected to be driven by the increasing prevalence of in-app purchases in mobile apps. In-app purchases (IAP) allow users to buy digital goods, content, or features within mobile apps or software, particularly in free or freemium apps. This integration of in-app purchases is such as ly to fuel online microtransactions by providing users with a convenient and accessible means of acquiring digital items and content, thereby contributing to enhanced revenue in the online microtransactions market. For instance, as of July 2023, Business of Apps reported that approximately 50% of non-gaming apps and 79% of gaming apps use the in-app purchase strategy. In Q1 2021, Google Play generated $36.7 billion in sales, while the Apple App Store recorded $31.8 billion in sales, with expectations to reach nearly $200 billion by 2025. Therefore, the increasing feature of in-app purchases in mobile apps is poised to drive the growth of the online microtransactions market in the forecast period.

The substantial expansion of the gaming industry is set to play a pivotal role in propelling the development of the online microtransactions market. Online microtransactions involve real money transactions to access in-game currency or virtual items, enhancing the gaming experience for players. According to a 2019 report by Ernst & Young Global Limited, the global games market is projected to reach $196.0 billion by the end of 2022, growing at a CAGR of 10.0%. In January 2022, the Entertainment Software Association reported that total consumer spending on video games in the United States reached $60.4 billion in 2021, marking an 8% increase from the previous year. Spending on content increased by 7% to $51.7 billion in 2021, while hardware saw a 14% increase, reaching $6.1 billion. Accessories spending by consumers increased by 2% to $2.7 billion. Therefore, the growth of the gaming and video gaming industry is expected to drive revenues for the online microtransaction market in the foreseeable future.

The projected growth of the online microtransactions market may face limitations due to stringent regulations imposed on microtransactions during the forecast period. For example, in July 2022, the UK government highlighted concerns about the potential harm associated with loot boxes in video games. The Department for Digital, Culture, Media & Sport (DCMS) issued a call for information in September 2020, seeking input on this matter in conjunction with an examination of the Gambling Act. Evidence was gathered from various sources in response to the call for evidence. Consequently, strict regulations imposed by the government to set limits on transactions may adversely impact the growth of the online microtransactions market over the forecast period.

Major companies are introducing innovative gaming technology, such as Champions Tactics. Developed by Ubisoft Entertainment, a France-based video game publisher, Champions Tactics is the first game from the company to utilize blockchain technology. Launched in June 2023, this blockchain-based technology enhances online gaming by improving security, enabling true ownership of in-game assets through NFTs, ensuring transparency, facilitating interoperability, automating processes with smart contracts, and promoting decentralization. These advancements allow players to influence game development and governance.

A notable trend in the online microtransactions market is the adoption of new loot box policies by major companies to align with the guidelines of the U.S. game industry trade group, the Entertainment Software Association. Companies such as Microsoft, Nintendo, and Sony are planning to implement new policies by the end of 2020. This trend reflects a commitment to transparency and disclosure in loot box mechanics, shaping the growth trajectory of the online microtransactions market.

In June 2022, iCandy Group, an Australia-based online game developer, acquired Flying Sheep Studios for $2.1 million. This acquisition positions iCandy Group to enter the European market and become a global AAA metaverse gaming powerhouse. Flying Sheep Studios, an independent gaming studio based in Germany, specializes in creating web-based games with fluid 3D graphics that rival native applications. These games, featuring in-app purchases generating microtransactions, require no downloads or installations.

Major companies operating in the online microtransaction market report are Microsoft Corporation, The Walt Disney Company, Tencent Holdings Limited, Sega Sammy Holdings Inc., Sony Interactive Entertainment LLC, NetEase Inc., Valve Corporation, Activision Blizzard Inc., Bandai Namco Entertainment Inc., Electronic Arts Inc., CyberAgent Inc., Take-Two Interactive Software Inc., Square Enix Holdings Co. Ltd., Zynga Inc., Nexon Co. Ltd., King Digital Entertainment PLC, Konami Holdings Corporation, NCSoft Corporation, Supercell Oy, Ubisoft Entertainment S.A., Riot Games Inc., Smilegate Holdings Inc., Wargaming Public Co. Ltd., Capcom Co. Ltd., GungHo Online Entertainment Inc., Glu Mobile Inc., Niantic Inc., Machine Zone Inc., Kabam Inc., Gameforge 4D GmbH, Rovio Entertainment Corporation, Miniclip SA, Playtika Holding Corp., Big Fish Games Inc., GREE Inc., DeNA Co. Ltd., Com2uS Corp., Jam City Inc., Scopely Inc. The Asia-Pacific was the largest region in the online microtransaction market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global online microtransaction market report during the forecast period. The regions covered in the online microtransaction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Online microtransactions encompass various types, including in-game currencies, random chance purchases, in-game items, and expiration. In-game purchases involve players buying items or points to enhance their characters or improve the overall gaming experience within a virtual world. These transactions operate under different models such as the prepay model, postpay model, and others. Online microtransactions are prevalent across various platforms, including mobile devices, consoles, and PCs.

The online microtransaction market research report is one of a series of new reports that provides online microtransaction market statistics, including online microtransaction industry global market size, regional shares, competitors with an online microtransaction market share, detailed online microtransaction market segments, market trends and opportunities, and any further data you may need to thrive in the online microtransaction industry. This online microtransaction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the online microtransaction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The online microtransaction market includes revenues earned by entities by providing in-game virtual goods. Microtransactions often appear in free-to-play games that do not have any cost for downloading the game and only include the online cost for virtual goods. Microtransactions are done to unlock specific features or enhance the special abilities, content or character in a game. In-game purchases are items or points a player purchases for use within a virtual world to improve a character or enhance the playing experience. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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