Social Gaming Is Estimated To Witness High Growth Owing To Opportunity In User Engagement
Social Gaming Market
Social gaming involves playing online games on social media platforms such as
Facebook, Instagram, and others for fun as well as for earning virtual rewards,
money and other forms of incentives. It allows users to play games against
their friends, join communities of players and discuss tactics to improve
performance in games. The global social gaming market is a multi-billion dollar
industry driven by growing internet and smartphone penetration worldwide.
Social gaming provides an entertaining and engaging way for users to spend time
online individually or collaboratively in virtual worlds and communities.
The global Social Gaming Market is
estimated to be valued at Us$ 36.42 Mn
in 2024 and is expected to exhibit a CAGR
Of 6.6% over the forecast period 2024
To 2031, as highlighted in a new report published by Coherent Market
Insights.
Market Opportunity:
One of the key opportunities for growth in the social gaming market is the
increasing user engagement. As social gaming allows multiplayer interactions
and collaboration, it helps increase engagement levels of users on social media
platforms. Developers are focusing on introducing innovative social elements
and new modes of multiplayer gameplay to keep users engaged for longer
durations. New forms of in-game communications and competitions are also
driving higher engagement. The social aspects of gaming encourage ongoing
interactions and help build loyalty among gaming communities. This continued
engagement serves to boost monetization potentials through in-app purchases and
subscriptions, representing a major market opportunity over the forecast
period.
Porter's Analysis
Threat of new entrants: The social gaming market requires significant
investment in research and development which acts as a barrier for new
companies.
Bargaining
power of buyers: Buyers have moderate bargaining power due to the availability
of free and low cost social games.
Bargaining
power of suppliers: The suppliers of social gaming platforms face less threat
due to the dependence of game developers and publishers.
Threat
of new substitutes: Alternative sources of entertainment pose minor threat due
to the innovative gameplay and networking features offered by social gaming.
Competitive
rivalry: Intense competition exists between major social gaming companies due
to similar product offerings.
SWOT Analysis
Strengths: Large user base and network effects for social interaction. Constant
innovation in gameplay and monetization models enhancing engagement.
Weaknesses:
Dependency on app stores and in-app payment mechanisms of platform owners.
Susceptible to frequent technology changes and new trends.
Opportunities:
Growth opportunities in emerging markets with rising internet and smartphone
adoption. Expanding to new genres and platforms beyond mobile.
Threats:
Growing security and privacy concerns around data usage can impact market
growth. Stringent regulations around micro-transactions and loot boxes in some
regions.
Key Takeaways
The Global Social Gaming Market Demand is
expected to witness high growth over the forecast period due to growing eSports
popularity and increasing internet penetration worldwide. The global Social
Gaming Market is estimated to be valued at US$36.42 Mn in 2024 and is expected
to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031.
Regionally,
Asia Pacific dominates the social gaming market currently due to high
smartphone adoption in India and China. The region is expected to retain its
leading position over the next few years as well.
Key players operating in the social gaming market are Waste Management Inc.,
Republic Services Inc., Clean Harbors Inc., Covanta Holding Corporation,
Stericycle Inc., Advanced Disposal Services, Casella Waste Systems, Recology,
Biffa, REMONDIS SE & Co. KG. Social gaming platforms offer rewards,
competition, and collaboration which enhances user engagement. Companies are
investing in cloud, AI and biometrics to offer location-based and personalized
gaming experiences. However, monetizing social gaming also introduces risks
around exploitation and requires responsible approaches. Overall, the market is
poised for steady growth driven by innovative business models and rising
popularity of mobile-first entertainment experiences.
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