By 2018, Mobile Gaming Revenue Predicted to be $45 Billion
According to research from Digi-Capital, an intelligence firm, spending on gaming software across all platforms will hit $88 billion in 2015. The company also forecasts that number will grow 8% annually and by 2018, will surpass $110 billion. Mobile is a key factor in driving growth, more than any other sector (see chart below). Spending on smartphones and tablets will generate more revenue than console games this year, excluding sales from hardware such as the PlayStation 4 systems and Xbox One.
Where mobile games will take $3 of every $10 spent by gamers on software in 2015, that figure will go up to $4 out of every $10 by 2018,” Digi-Capital founder Tim Merel wrote in the report. “Mobile games revenue will grow from $29 billion in 2015 to $45 billion by 2018 at 15 percent annual growth. Asia has dominated mobile games revenue since 2013, compared to both North America and Europe, and Digi-Capital forecasts Asia to take over 50 percent of all mobile games revenue in 2018.”
This report also predicts that Android apps will make more total revenue than Apple by 2018 as long as you include China, where the official Google Play store currently has very little presence. According to Stewart Rogers, an analyst at Venture Beat Insight,
Since 2012, when Symbian still had 40 percent market share, Android and iOS have systematically taken over China and now account for all but 2 percent of mobile OS. Clearly, with 74 percent market share, Android is leading the way in terms of install base. But Google has a long way to go in both providing value through Google Play for developers and providing a premium experience for users – two areas Apple do extremely well in.”
Digi-Capital’s report is available for download here.