The MMORPG gaming market is expected to grow at a CAGR of 9.5% during the forecast period of 2021-2026. The increasing trend for online gaming among millennials has led to the creation of a virtual world for video gamers, where they get a virtual economy, currency, trade environment, and real-time scenarios to deal with. The increasing gaming player bases, revenues, and investment in the gaming market across the globe are also aiding the growth of the MMORPG gaming market.
- The increasing penetration of the internet is boosting the growth of MMORPG gaming across the world. Access to the internet in developing economies such as India and Brazil, among other countries, is aiding internet users' growth. According to the India Brand Equity Foundation, internet penetration in India accounted for 50% in February 2020 from 4% in 2007. Also, according to the data of GlobalWebIndex, it indicates that more than 1 billion people worldwide are now interested in internet streaming each month.
- With the help of advanced gaming technology, the game developers successfully keep the gamers engaged in the role-playing games and encourage them to stake more real money to receive the benefits or "boosters" over the games. This strategy has also facilitated the MMORPG game publishers and developers to generate more sales by retaining players and attracting others. According to the Enterprise Software Association, almost 50% of gamers have made a microtransaction in the past year.
- Among the various gaming platforms, the gaming console is also expected to witness considerable growth during the forecast period in the MMORPG market, owing to increasing gaming subscriptions among the players, increasing adoption of sport, and video game advertising. The rise of video games through consoles is growing and might show potential growth in the coming years. As a response to this trend, connectivity and entertainment providers could target the console gamers by offering console-related video services, such as live sports, fast broadband, and monetizing the audience more optimally through OTT ad-supported services.
- North America is expected to be the fastest-growing market for MMORPG gaming due to a significant rise in gaming across the United States and Canada population. According to the Enterprise Software Association, 60% of Americans play video games daily, and 56% of gamers play multiplayer games at least once a week. Over 30% of consumers pay for gaming subscription services. The gaming ecosystem in the region is witnessing the increasing adoption of direct-to-consumer subscription services from technology enabling companies.
- With an outbreak of the COVID-19, the market witnessed a positive growth with the increasing popularity of online multiplayer games, as people stayed at home for the maximum time, due to lockdowns being imposed by various governments as well as to stay safe from being affected. Mobile platform is witnessing a significant increase in consumer engagement with mobile-based gaming, especially in mobile-first markets, such as Asia, Middle East, and Latin America. According to Verizon, the usage of gaming apps rose 75% week-over-week during April 2020 and is expected to increase further.
Key Market Trends
Mobile Platform is Expected to Grow at a Considerable Rate
- A mobile platform, such as smartphone gaming has been exploded in the past couple of years. There were more than 213 million mobile game players in 2020 in the United States alone. This growing demand for mobile-based gaming is a direct result of the multiple technological advancements in the market, such as AR, VR, cloud gaming, and 5G. This trend is not surprising considering that the mobile gaming platform industry primarily relies on new technology. Another trend in the market includes the rise of the hyper-casual game genre.
- The smartphone gaming platform is witnessing rapid growth and is representing a cost-effective opportunity for investors, mobile developers, and publishers. It is also anticipated that by 2021, the number of mobile online gamers in the Southeast Asian region would rise to 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 are preferring games on mobile devices. The increasing services and investment in 5G infrastructure are also vital toward 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.
- Various MMORPG games are being provided in the android platform that is expected to gain significant traction in the mobile-based gaming platform in the forecasted period. People prefer more paid application MMORPG games on the Andriod platform. For instance, old-school RuneScape for mobile devices has gained a lot of traction and is one of the best MMORPG on Mobile, where charges range from USD 10.99 per month to USD 99.99 per year.
- While there are multiple gaming options available for smartphones, the size of the screen might be too limiting to get the immersive gaming experience. A gaming tablet has been an excellent product for consumers who want to enjoy games on the go. Tablet's bigger screen, more battery life, and excellent processing power have been the most important factors for their growth in the market.
Latin America is Expected to Hold Significant Market Share
- Latin America is one of the largest gaming markets with over 230 million gamers and growing at 13.5% a year. The number of gamers in Brazil and Mexico has passed those in Germany and the UK and shows no sign of slowing. Latin America isn't just experiencing growth in the number of people playing video games. They are also developing their own games. For Instance, an indigenous game named 'Argentum Online' became the first game in history which originated in Argentina and was able to have an Esports competition. The Argentum Cup was the first Esports tournament of the video game. The match began on 1st May 2021, and it was telecasted on the official Twitch channel of the event.
- The GSMA report, ‘The Mobile Economy Latin America 2020,” forecasts 62 million 5G connections across the region by 2025, representing a near 10% adoption rate. By that same year, 4G will account for 67% of total connections. 5G connection has higher speeds and ultra-low latency, which will make the gaming experience seamless and fuel the growth of the market studied.
- According to the Ministry of Culture Argentina, 60% of new smartphone users prefer playing games on smartphones. According to Adsmovil, there are 68.8% of adult mobile gamers in the country, and majorly, these are the primary audience for MMORPG gaming in the country. Moreover, during the COVID 19 pandemic number of mobile gamers are also increased due to the lockdown situation. Hence this considerable demand can create substantial market potential for the major vendors in this market.
- Brazil's gaming industry is on the rise, with the potential to compete with other countries. Brazil's gaming industry is enormous, with 75.7 million players and 59% of internet users watching gaming-related video content online. The country is second only to Mexico in Latin America, despite having 20 million more players, with an estimated revenue of USD 1.6 billion.
- Brazil has over 62 million active gamers, which is more than most major European markets have. In the past two years, the country's gaming population increased by over 28%, in particular, because of the advancement of smartphone penetration and the popularity of mobile games. Therefore, the penetration of smartphone and mobile gaming is expected to create significant opportunities for the market. According to China Link Trading, revenue generated on the smartphone/mobile platform in Brazil accounted for USD 533 million in 2020.
The MMORPG gaming market is fragmented in nature and comprises a large number of global and regional players. These players are majorly based in the Asia Pacific region and are focusing on expanding their consumer base. These gaming developers are investing more in the research and development activities to offer new solutions for gamers. The companies are also entering into strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge.
- July 2020 - Nexon Co. Ltd launched V4, a new AAA cross-platform MMORPG, on mobiles through the App Store and Google Play, It is developed by NAT GAMES Co. Ltd, a consolidated subsidiary of Nexon. V4 is powered by Unreal Engine 4 and delivers console-quality graphics and a AAA gameplay experience on mobile. Also, Nexon's official V4 PC client allows cross-play and progression with a mobile account.
- June 2020 - Atari announced a partnership with Native Gaming and Black Dog Venture Partners to integrate the upcoming Atari Token in Native Gaming's MMORPG.
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1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of the Covid-19 on the Market
4.5 Market Drivers
4.5.1 Rising Smartphone Penetration and Increasing Penetration of Internet among Developing Economies
4.5.2 Technological Advancement such as IoT, AR, and VR
4.5.3 Emergence of Gamification
4.6 Market Challenges
4.6.1 Hardware and Connectivity Issue
4.6.2 Fraudulent Gaming Activities
5.1.3 Gaming Console
5.2.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.2.3 Asia Pacific
184.108.40.206 South Korea
220.127.116.11 Rest of Asia Pacific
5.2.4 Latin America
18.104.22.168 Rest of Latin America
5.2.5 Middle East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle East and Africa
6.1.1 Activision Blizzard Inc.
6.1.2 Electronic Arts Inc.
6.1.3 Ubisoft Entertainment SA
6.1.4 NCSOFT Corporation
6.1.5 Giant Interactive Group Inc.
6.1.6 Tencent Holdings Limited
6.1.7 Amazon Game Studios
6.1.8 Nexon Co. Ltd.
6.1.9 Jagex Limited
6.1.10 Bright Star Studios
6.1.11 Daybreak Game Company
6.1.12 CCP games UK Ltd
6.1.13 Neteasegames Inc.
6.1.14 Aeria Games
6.1.15 Gravity Corporation