Online Casual Games - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Online Casual Games Market size is estimated at USD 20.48 billion in 2024, and is expected to reach USD 27.56 billion by 2029, growing at a CAGR of 6.12% during the forecast period (2024-2029).

During the COVID-19 pandemic, due to nationwide lockdowns, some people turned to game platforms to pass the time. Hence, these platforms attracted thousands of new visitors to online traffic. Video gaming trends are experiencing a massive surge in players and revenue.

Key Highlights

• Rising internet access, greater smartphone penetration, and the introduction of high bandwidth network connectivity, such as 5G, have all contributed to an increase in online casual gaming demand. According to the GSMA research, by the beginning of last year, 170 mobile operators had started commercial 5G services with a 7population penetration by the end of last year, creating new prospects for mobile manufacturers to put 5G handsets into the market.
• The popularity of casual online games has expanded dramatically. Because of the ease and excitement they provide, they are the most popular and finest casual games worldwide. They have low system requirements. And while they are very engaging, they do not require the utmost focus. In other words, these games are a fantastic way to kill time. Furthermore, there are also some incredibly enjoyable games for children.
• Leveraging cloud technology in the casual games market is projected to drive demand and multiplayer engagement for various games, increasing market growth over the forecast period.
• Online gaming is the largest contributor to the overall gaming market. The continuous advancement of numerous technologies in computers, smartphones, and systems, such as processors, graphics, and other hardware and software, has resulted in the expansion of the online casual gaming sector. Furthermore, continuous advancements in network connectivity fuel the demand for casual online gaming.
• With the outbreak of COVID-19, the industry saw a positive development due to the increasing popularity of online multiplayer games, as individuals stayed at home for the longest time due to lockdowns imposed by various governments, as well as to avoid being impacted. Consumer engagement with mobile-based gaming is increasing significantly on the mobile platform, particularly in mobile-first markets, such as Asia, the Middle East, and Latin America.

Online Casual Games Market Trends

The Increasing Penetration of Internet and Smartphones Boosted the Demand for the Online Casual Games Market

• The mobile platform, such as smartphone gaming, has surged in the last few years. Last year, there were 228.7 million active mobile game players across the United States and Canada, marking a 4% year-over-year reduction compared to 2020 but a 9% increase over 2019.
• Moreover, according to App Annie, global consumer expenditure on mobile games exceeded USD 116 billion in 2021. As per the firm's recent State of Mobile 2022 study, this marked a 15% year-over-year growth.
• The smartphone gaming platform is rapidly expanding and represents a low-cost potential for investors, mobile developers, and publishers. It is also expected that by 2021, the number of mobile online gamers in Southeast Asia will reach 250 million.
• The release of 5G and unlimited data plans is also expected to be key factors toward the success of cloud gaming globally, as most gamers currently prefer games on mobile devices. The increasing services and investment in 5G infrastructure are also vital to this success. According to Ericsson, the number of 5G mobile subscriptions in the Asia-Pacific region is anticipated to reach around 1,545 million by 2025.
• The market players have been targeting growth opportunities by investing in other parts of the world. For instance, Voodoo invested in Teskin, an Israeli casual game developer, in November 2021, and Teskin will join Voodoo's simple business section. However, both companies will operate independently and work on their respective initiatives. Teskin has accumulated over 20 million lifetime downloads across its portfolio of casual mobile games in just four years. It intends to increase its team size and invest in new casual games.

Asia-Pacific Region Expected to Increase its Market Share

• Asia-Pacific is expected to have a considerable market share in the gaming sector, with China, Japan, and South Korea displaying strong growth potential. With rising technological utilization, China is one of Asia's most important economies. Increasing exports and innovating new games and systems are important gaming drivers. China is one of the Asia-Pacific countries with a significant COVID-related increase in its gaming companies.
• Many significant players are making acquisitions and forming partnerships in Japan to strengthen their regional position. For instance, last year, the Japanese publisher Sega began a strategic agreement with Microsoft to develop the Super Games platform using the Microsoft Azure cloud platform.
• The availability of cheap internet and low-cost smartphones is a major driver of the development of casual games in India. According to the IAMAI research Unpacking a billion dollar industry: Digital games and sports in India, 2021, more than 43% of smartphone users play at least one casual game. India will have over 900 million mobile subscribers by 2023. 94% of India's 420 million casual gamers play on mobile devices.
• China produced USD 89.5 billion in income last year, according to figures from the Mobile Game Index 2nd Edition published by adjoe. The United States is second with USD 58.3 billion, followed by Japan with USD 50 billion. Also, last year, the number of app downloads in China (58.1 billion) was nearly equal to the rest of the globe (59.7 billion).
• According to the Gambling Insider Magzine, India is (arguably) one of the most distinct gaming marketplaces, owing to the wide range of games available and the diverse user base. Sports enthusiasts are interested in fantasy sports, esports is popular among Gen-Z and young adults, and card games (such as poker and rummy) are popular among all age groups. Throughout this, the casual gaming sector in India has grown dramatically in recent years, and it is expected to produce INR 169 billion in revenue by 2025 due to a rising user base and a little boost from the pandemic.

Online Casual Games Industry Overview

The online casual games market is fragmented and comprises many global and regional players such as Ubisoft Entertainment, Zynga Inc., Microsoft Corporation, Apple Inc. (Apple Arcade), and Konami Digital Entertainment. These players are majorly based in the Asia-Pacific region and focus on expanding their consumer base. These gaming developers are investing more in R&D activities to offer new solutions for gamers. The companies are also entering into strategic partnerships and other organic and inorganic growth strategies to earn a competitive edge.

• February 2022: Ubisoft announced that it would introduce its subscription service, Ubisoft+, to the Xbox platform in the future. Ubisoft+ gives gamers access to over 100 Ubisoft games, including new releases, DLC, and classics, as well as prizes, such as personalization items, boosters, and other in-game bonuses. Ubisoft+ is presently available on PC, Stadia, and Amazon Luna and will be accessible on Xbox.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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