Global Online Games of Skill Market by Game Type(Fantasy Sport, Card Based Games, E-Sports & Strategy Games) and by Geography(North America, Europe, APAC & ROW), Analysis & Forecast, 2016-2022
While numerous categories of online games are available, games of skill are defined as online games in which the outcome of the game is determined either fully or partially by the skill of the player in the form of dexterity, logic abilities, knowledge or strategic thinking. This definition has legal implications as real money games of chance or luck are illegal in several jurisdictions while games of skill are not. Following the definition, games such as fantasy sports, eSports, strategy games, brain games, word games and trivia games where players compete against each other, fall under the category of skill based games.
The digital gaming boom has led to the expansion of the industry far beyond its traditional ecosystem of developers, publishers and operators, and inculcates a host of players from adjoining verticals such as media firms, investment firms, event organizers and advertising agencies. Although, as the competition in the market intensifies, it is becoming increasingly difficult for developers to generate brand loyalty and sustain a revenue generating consumer base despite the integration of gaming platforms with social media that has made it easier than ever for players to recommend games to other prospective players.
The report on ‘The Global Games of Skill’ is a meticulous compilation of the various facets of the smokeless tobacco industry. After a thorough analysis of the current trends, the market dynamic chapter includes the key push and pull forces prevailing in the global games of skill market. Owing to the dependency of the market growth on the legal and regulatory framework, the report at each step has considered the effect of laws (both implemented and anticipated) in terms of regulations and taxation in estimation and forecast of the market size.
The increasing proliferation of smartphones, provision of secure payment gateways, improving internet accessibility across the globe and availability of a diverse range of gaming options are expected to keep driving the industry despite the legal and regulatory challenges impeding the industry in several key market regions. Therefore, the global games if skill market estimation and forecast has been initiated with an exhaustive set of assumptions, following which market size information for both key geographical areas and key gaming types has been provided.
The report involves a mix of companies chosen on the basis of their market developments, revenue generation and market share in the industry. The companies profiled in the report include Playtech, Activision, Amaya, EA, Square Enix and Unisoft among others.
Key Questions answered in the report:
The global games of skill market is expanding and exploring new avenues. The diverse consumer base has paved way for an array of new revenue streams and integrated payment solutions ranging from subscriptions fees, pay-per-play, in-app purchases, royalties to premium account and upgrade remunerations. While initially users in developing economies showed a predisposition towards free to play games due to concerns regarding safety of online payment gateways, the user base is now migrating towards real money online games and turning into a loyal revenue base.
North America being an early adopter of new technology and new models of media consumption already boasts of a mature market worth $XX.XX billion and thus will witness a slow growth throughout the forecast period. While APAC being led by two of the largest developing nations, India and China is expected to grow at a CAGR of XX.XX% to become a $XX.XX billion market by 2025. Improving internet connections, and availability of low cost smartphones will be the primary growth drivers in the region. While rising incomes of middle class populations and search for alternative modes of recreation by the large youth populations of the two nations will further escalate the growing demand for interactive media.
The following figure provides a snapshot of the market share of key geographies in the global games of skill market:
Global Games of Skill Market Share (2015) of Key Geographies
Global Game of Skills Market Report Forecast 2016
BIS Research Analysis
Strategy games and brain games which are played primarily on smartphones and tablets are the largest contributing segment to the online games of skill market and are continued being so throughout the forecast period. Their large revenue can be attributed to the widespread success of games such as Clash of Clans, Game of War: Fire Age and Puzzles and Dragons, each of which bring in billions in revenue each year and are top grossing games in most countries. Card based games that consist of online poker, rummy and blackjack make the second largest revenue due large wagering on online poker across North America, Europe and India, as well soaring popularity of online rummy (Indian Poker) in the Indian subcontinent. However, its e-sports which have expanded far beyond the conservative boundaries of South Korea in recent years and are now holding tournaments across the globe drawing millions of viewers, that will experience the fastest growth. However, its e-sports which have expanded far beyond the conservative boundaries of South Korea in recent years and are now holding tournaments across the globe drawing millions of viewers, that will experience the fastest growth at the CAGR XX.XX% throughout the forecast period. While fantasy sports although growing at a considerable CAGR of XX.XX%, will continue contributing only a meagre share of the market.
While no global leader exists in other segments, Amaya Inc., has emerged as the undisputed leader of the online poker market, after its acquisition of PokerStars and Full Tint in 2014, which currently make up XX% and XX% of the market respectively, thus giving the company control of the XX% of the global market. 888 follows second with a XX% market share, while the next few positions are occupied by William Hill, GVC, Playtech and Betsson.
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