The mobile gaming landscape is undergoing significant transformations, driven by shifting consumer behavior, emerging technologies, and innovative business models. In this report, we'll delve into the latest trends, insights, and opportunities shaping the future of mobile gaming.

State of Mobile Market

According to data.ai's 2024 report, the mobile market experienced a remarkable rebound in 2023, with consumer spending reaching a new high at $171 billion, marking a 3% year-over-year increase. App downloads reached an impressive 257 billion, up by 1%, while mobile advertising spending surged by 8% to $362 billion. Users spent a staggering 5.1 trillion hours in mobile apps on Android alone, indicating a 6% increase from the previous year.

Despite this growth, revenue from mobile games saw a 2% decrease, reaching $107.3 billion in 2023. This decline is primarily attributed to a slump in the Chinese market by $4.62 billion. However, positive growth was observed in South Korea, Latin America, and several Western European countries. Notably, a shift in revenue from mobile stores to alternative payment methods and the rise of web and PC gaming contributed to the changing dynamics.

Gaming Mobile Market by Downloads

Hyper-casual projects remain the most downloaded genre, accounting for 28% of total downloads. In 2023, 16.4 billion hyper-casual projects were downloaded, a 7.5% decrease from the previous year. However, this genre saw a 52.9% growth in In-App Purchase (IAP) revenue, now contributing 0.5% to the total IAP market.

Simulation games ranked second with 10.5 billion downloads (18% of the total), a 0.7% increase from 2022. This category includes popular games like Roblox and My Talking Tom. Simulators accounted for 9.5% of the total IAP payments, a decrease of 5.3% from 2022.

Action-adventure games took third place with 5.5 billion downloads (9% of the total), a 12.1% decline from 2022. In terms of IAP payments, this genre declined by 10.3% in 2023, now representing 5.8% of the total IAP market.

New games are attracting more installations than older projects, indicating people's willingness to try new products. While there may be challenges, success stories like miHoYo, Scopely, and Century Games demonstrate that great results can be achieved.

Gaming Mobile Market by Revenue

RPGs emerged as the most profitable genre globally, generating $24.5 billion in 2023, representing 30% of the entire IAP market. However, this genre experienced a 3.8% decline from the previous year. In terms of downloads, RPGs grew by 19.7%, accounting for 3% of the market share.

Strategy games secured the second position with $10.7 billion in revenue, accounting for 13% of the total IAP market. This genre saw an 11.7% decline in revenue in 2023 but grew by 2.2% in terms of downloads, holding a 2% market share.

Match projects took third place with $10.2 billion in revenue, growing in all aspects: IAP revenue increased by 16.3% (13% of the total volume), and downloads grew by 6.7% (5% of the total volume).

The number of new games entering the top 1000 by revenue reached a minimum since 2019, with a slight decline compared to 2022. However, the average revenue of new projects compared to old ones shows growth in many markets, indicating that new projects are approaching the revenue figures of old projects.

Final Thoughts

As the mobile gaming industry continues to evolve, these findings from data.ai's 2024 report hold particular relevance for the world of web3 gaming. The trends observed in mobile gaming, such as the shift in revenue sources, genre dynamics, and the increasing preference for new gaming experiences, offer valuable insights for developers and investors venturing into the web3 space.

The challenges and successes documented in the report serve as a roadmap for navigating the intersection of mobile and web3 gaming.