Mobile and Handheld Gaming Market

Mobile and Handheld Gaming Market Outlook (2024 to 2034)

The global mobile and handheld gaming market size is on track to reach US$ 9,660.1 million in 2024. The market is poised for rapid growth, with an extraordinary compound annual growth rate (CAGR) of 13.8% projected through 2034. This expansion is anticipated to elevate the market to a substantial valuation of US$ 35,189.6 million by 2034.

Currently, the media industry's booming segment is, by far, the gaming sector. IP related to gaming has become essential for drawing in new viewers and suggesting room for expansion. The multibillion-dollar gaming industry is seeing unprecedented growth as increasing numbers of individuals participate in, watch, and broadcast e-sports. The mobility of mobile or handheld gaming is one of the main factors driving the craze. The increasing convergence of entertainment, technology, and gaming experiences opens up new avenues for growth, presenting exciting opportunities for mobile and handheld gaming market players.

Smartphones are one of the main factors contributing to the development of the global mobile and handheld gaming market. In the last two decades, mobile gaming has surpassed other platforms, especially with the introduction of smartphones, which has made it possible for the field to flourish. Innovative mobile game development has already begun on platforms such as Facebook and Instagram, which want to guarantee strong product distinction and leverage the popularity of these games to improve their advertising campaigns.

Key Mobile and Handheld Gaming Market Growth Factors

• One of the main factors propelling the market's growth is the growing trend and popularity of video games among youth. Benefits of portable gaming consoles include the ability to play games anywhere without the need for an internet connection, as well as the ability to play online. Additionally, the fact that these consoles are lighter and more compact than home video game consoles has helped the market expand. During the projection period, a significant growth rate is anticipated for the surge in sophisticated technologies in the portable gaming sector and the widespread use of video games with improved visuals.
• Compared to PC/console games, mobile games need twice as many hours of playtime each week, and the mobile gaming industry is more varied. High-quality visuals and gaming experiences are now possible on mobile devices, and the development of smartphones has made complex gameplay that was previously exclusive to PCs possible. As smartphones continue to evolve, the potential for groundbreaking gaming experiences also grows. It solidifies the mobile and handheld gaming industry's role as a driving force in the ever-expanding landscape of digital entertainment.
• Maintaining a competitive edge in the dynamic global mobile and handheld gaming market is imperative, with the adage 'Innovate or die' holding significant weight. It's critical to keep up with emerging technology like wearables, game streaming, and VR headsets to capture the attention of customers. The mobile and portable gaming industry is going to be significantly shaped by emerging trends, including head trackers, motion sensors, color detection, artificial intelligence, and sound sensing.
• The gaming industry is distinct in the Middle East. The GCC region's governments have made significant investments in the sector, seen its potential, and put plans in place to attract gaming enterprises. A National Gaming and E-sports Strategy in Saudi Arabia aims to produce thirty games by 2030; in the United Arab Emirates, AD Gaming and DMCC Gaming Center want to draw in international companies.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 9,660.1 million
Forecasted Market Value (2034F)	US$ 35,189.6 million
Global Market Growth Rate (2024 to 2034)	13.8% CAGR
Tablet Segment Growth Rate (2024 to 2034)	14.5%
Commercial Segment Growth Rate (2024 to 2034)	14.1%
North America Market Share (2024)	25.8%
East Asia Market Share (2024)	30.7%
Key Companies Profiled	NVIDIA Microsoft Ubisoft Entertainment Samsung King Supercell Disney

What are the Key Factors Stimulating the Global Mobile and Handheld Gaming Market Growth?

“The Technology Boom Propelling Mobile and Handheld Gaming to New Heights”

The mobile and handheld gaming market forecast reveals a promising route to success as the industry continues to embrace innovative technologies, paving the way for sustained growth. The sector is seeing a revival due to a rise in participants. This is because of the rapid advancements in technology, which are increasing demand for handheld and mobile gaming consoles around the globe.

Over the projection period, virtual reality and augmented reality have been identified as the upcoming key breakthroughs in the global mobile and handheld gaming market. To promote virtual reality (VR) and move it from its existing niche position in the global mobile and portable gaming industry, several leading companies are investing enormous quantities of money in high-end, sophisticated technology.

One business that has done more to advance the idea of virtual reality gaming than many others is NVIDIA. With a broad product range, NVIDIA meets the demands of its customers and offers virtual reality solutions. With the release of its Oculus-powered Samsung Gear VR virtual reality device, Samsung Electronics has also ventured into the virtual reality space. As the significance of PC and console gaming ages, mobile virtual reality is one of the few markets that may create enthusiasm in the mobile and handheld gaming space.

“In-game Purchases and Edge Data Centers Fueling the Mobile and Handheld Gaming Market Boom”

The freemium model has undeniably become a driving force in the mobile and handheld gaming market. Smartphone owners can engage in mobile games for very little money or for free. This significantly reduces the entrance barrier, growing the audience and enabling games to demonstrate value without needing payment upfront from the player.

One major source of income for the mobile gaming business is in-game purchases, or the ability to buy extra features within games. The flexibility of in-game payment options further aids global mobile gaming revenue growth. As users immerse themselves in these initially free experiences, they gradually recognize the "need" to invest money to enhance their gaming encounters.

The ongoing evolution of games into dynamic services ensures a sustained revenue stream by offering users a personalized gaming experience. Moreover, cloud gaming services use streaming media services, global content delivery networks, and hyper-scale cloud capabilities to create the next wave of interactive, immersive, and social entertainment platforms.

Global mobile gaming growth is fueled in part by the spread of edge data centers. This combination of accessibility, engagement, and monetization strategies underscores the significant impact of the freemium model on mobile and handheld gaming market growth.

Which Factors Pose Challenges to the Development of the Mobile and Handheld Gaming Industry?

“Adapting to Mobile and Handheld Gaming Market Trends without Breaking the Bank is a Significant Challenge”

The ongoing requirement for software and hardware innovation to meet changing customer expectations is one significant obstacle. The growing price of video games is one such barrier that might impede market advancement. This is undesirable at a time when many people are struggling financially. A sizeable fraction of the individuals who keep the game industry running are being shunned by current and anticipated future prices. Finding the ideal ratio to combine price and performance is an ongoing struggle.

“Standing Out in the Crowd to Tackle Market Saturation and Intense Competition is a Key Restraint for Market Players”

The difficulty of maintaining growth is exacerbated by market saturation and fierce competition. With so many gaming alternatives accessible, developers need to make significant investments in user acquisition and advertisement strategies to differentiate themselves in a competitive industry. Additionally, customer retention becomes crucial, necessitating a careful balance between user-friendly interfaces and captivating content. A further degree of complexity is added by the constantly shifting regulatory landscape, particularly with regard to privacy and data protection.

Country-wise Insights

The North America mobile and handheld gaming market share is gearing up for remarkable growth, foreseeing an impressive CAGR of 14.0% through 2034. There are many smartphone users in the region, and mobile games are very well-liked by people of all ages. The market is driven by an established gaming culture, extremely high smartphone penetration, and advantageous economic conditions, particularly in the United States and Canada.

Between 2019 and 2027, there is expected to be a sharp rise in 5G subscribers in North America, from over 1.07 million to about 399.99 million. The highest rate of smart device adoption is seen in this region. Given the substantial impact that smartphones have had on the industry's development, this region presents an excellent opportunity for the market to grow throughout the projected period. In 2024, the United States takes the lead in the mobile and handheld gaming market, boasting an estimated market share of 78.2%.

The mobile and handheld gaming market in East Asia is poised for substantial advancement, targeting a 14.9% CAGR until 2034. East Asia's mobile economy is expanding at an astounding rate. The spread of low-cost Android smartphones and digital financial inclusion is making emerging markets in the area more accessible.

Through e-payment options and the ability to spend money on apps and the internet, smartphones have made it possible for the unbanked people living in these developing communities to engage in the digital economy. This, together with the growth in gaming, has led to an increase in user acquisition expenditure, particularly in developing countries. In this region, China takes the spotlight as a key player in the mobile and handheld gaming industry, holding a substantial market share of 50.3% in 2024.

What Factors Contribute to the United States' Dominance in the Global Mobile and Handheld Gaming Market?

“Mobile Takes the Lead as AR, VR, Cloud, and 5G Reshape the United States Gaming Landscape”

The diversity of gaming platforms in the United States is well-known. In the United States, mobile gaming has surpassed both console and PC gaming as the most popular type of gaming. Furthermore, the growing popularity of mobile games is a consequence of several technological developments and enhancements, including AR, VR, cloud gaming, and 5G. Given that the mobile gaming business mostly depends on new technology, this trend is not surprising.

Attributes	Details
United States Market Size (2024E)	US$ 1,949.0 million
United States Market Size (2034F)	US$ 6,995.4 million
United States Market CAGR (2024 to 2034)	13.6%

The country has also seen a rise in the popularity of cloud gaming services, which let consumers stream and play games on their smartphones. For example, Now.gg, a California-based company that operates under the Android-PC gaming company Bluestacks, introduced a mobile cloud platform in June 2021 for game developers aiming to reach low- and mid-end smartphone consumers. The platform allows players to enjoy high-performance games without any latency or loss of quality.

To strengthen their positions in the industry, certain of the top video game firms in the United States are concentrating on mobile gaming. For US$ 2.1 billion in February 2023, Electronic Arts Inc. purchased United States-based mobile game developer Glu Mobile. With the acquisition, Electronic Arts' mobile revenue witnessed a fourfold increase.

What Factors Contribute to China's Status as a Flourishing Market for Mobile and Handheld Gaming Developers?

“China's Mobile and Handheld Gaming Corporations Spearhead Global Expansion with Billion-Dollar Turnovers”

China continues to be an important contender in the global mobile and handheld gaming market and has one of the most profitable gaming markets. Around 50% of the global revenue generated by mobile games, including those in China, is attributed to businesses with headquarters there.

These gaming corporations are expanding globally and are investing more aggressively than ever. In April 2023, forty China-based game developers-with a combined turnover of around US$ 2 billion-made it into the top 100 global mobile game publishers.

Attributes	Details
China Market Size (2024E)	US$ 1,491.7 million
China Market Size (2034F)	US$ 5,763.4 million
China Market CAGR (2024 to 2034)	14.5%

Recently, the brand AYANEO has gained popularity through the release of several handheld devices that offer an engaging gaming experience while on the go. The China-based company was established in 2020, and its intriguing mobile gaming devices immediately made it the talk of the town. Over the past few years, AYANEO has been developing a wide range of portable consoles. It now provides powerful handhelds that are on pace with costly PCs with potent CPUs and GPUs, along with a few substandard choices for cloud gaming services and mobile gaming.

Category-wise Insights

In 2024, the handheld game consoles platform segment is projected to be at the forefront, claiming a substantial 63.1% market share. On the other hand, the deployment operating system segment is set to assert its dominance in the mobile and handheld gaming industry, commanding a notable 55.8% market share in 2024.

What Factors Contribute to the Preference for Handheld Game Consoles as the Primary Platform?

“Stability in Handheld Consoles Offers a Smoother Gaming Experience Unmatched by Smartphones”

The handheld game consoles segment is estimated to hold 63.4% of the mobile and handheld gaming market share by 2034. The adoption of handheld game consoles as a default platform is projected to rise at a CAGR of 13.2% through 2034.

Handheld game consoles dominate the market since these offer a dedicated gaming experience with physical controls. These provide gamers with more immersive and precise gameplay compared to touchscreen controls on mobile devices. Furthermore, a devoted fan base is drawn to portable consoles due to their unique game titles and franchises.

The attractiveness of handheld gaming consoles is increased by the capacity to play top-notch, console-like games while on the go. The stability and consistency of hardware in handheld game consoles contribute to a smoother gaming experience. This eliminates concerns about device specifications and compatibility that can sometimes arise with mobile gaming on various smartphones.

What Contributes to the Expansion of Mobile and Handheld Gaming Market Specifically in the Context of Deployment Operating System?

“Mobile Deployment Operating System Features are Shaping the Mobile and Handheld Gaming Landscape”

The deployment operating system segment is likely to grip 55.1% of the mobile and handheld gaming market share by 2034. The adoption of mobile and handheld gaming in deployment is anticipated to rise at a CAGR of 13.0% through 2034.

The ease with which mobile devices running operating systems like iOS and Android can be integrated has greatly increased the appeal of mobile gaming. Both developers and consumers are drawn to these platforms because of their user-friendly interface, large app stores, and selection of game apps.

Furthermore, fresh features, better visuals, and increased speed are all brought about by the ongoing innovation and changes in operating systems, which improve gaming. Mobile operating systems are app-centric, which makes it simple to access a wide variety of games and makes them accessible to a wider audience.

Competitive Landscape

At the heart of the mobile and handheld gaming market, prominent figures wield significant influence over research and development, innovation, and the overall technological landscape. These key players serve as the driving force behind the booming market, shaping the future of gaming experiences.

The leading players in the market include NVIDIA, Microsoft, Ubisoft Entertainment, Samsung, King, Supercell, and Walt Disney. These leading players employ diverse strategies to gain a competitive edge. Many of them focus on enhancing user engagement by regularly introducing appealing game titles and immersive experiences. Others prioritize building robust ecosystems, integrating seamless cross-platform functionalities and cloud services to create a comprehensive gaming environment. Few of them emphasize strategic partnerships and collaborations to incorporate popular franchises and diverse content.

Recent Developments :

• In November 2023, Sony introduced the "PlayStation Portal," their breakthrough innovation in gaming technology. The purpose of this inventive handheld device is to revolutionize how gamers interact with their preferred PlayStation 5 titles. Sony's state-of-the-art Remote Play technology allows the PlayStation Portal, which has an 8-inch display, to stream PS5 games wirelessly.
• In August 2023, Qualcomm Technologies unveiled the latest Snapdragon G Series for handheld gaming. There are currently three tiers in the Snapdragon G Series for portable gaming: G1, G2, and G3, which includes the new Snapdragon G3x Gen 2 Platform. Smooth game streaming over the cloud and local storage is made possible by the Snapdragon G1 in portable gaming devices without fans. However, with its powerful processor and cutting-edge 5G and Wi-Fi 6/6E connection, the Snapdragon G2 is designed for full-featured mobile and cloud gaming.
• In June 2023, The ROG Ally handheld game console was introduced by Asus in India. It is equipped with Corning's Gorilla Glass Victus protection and features a 7.0-inch full HD (1080x1920p) LCD IPS screen with 500 units of brightness. It has a built-in panel microphone, a two-speaker setup with Smart Amplifier Technology, a refresh rate of 120 Hz, a 7ms reaction time, Dolby Vision, AI noise-canceling technology, Hi-Res certification, and Dolby Atmos.

Segmentation of Mobile and Handheld Gaming Market Analysis

• By Platform :

  • Handheld Game Consoles
  • Smartphone
  • Tablet

• By Operating System :

  • Commercial
  • Residential
  • Deployment

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia and Pacific
  • Western Europe
  • Eastern Europe
  • Middle East and Africa