MMORPG Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

MMORPG Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The MMORPG gaming market is expected to grow at a CAGR of 10.5% during the forecast period. 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. The increasing gaming player bases, revenues, and investment in the global gaming market are also aiding the growth of the MMORPG gaming market.

Key Highlights

• The increasing penetration of the internet is boosting the growth of MMORPG gaming worldwide. Access to the internet in developing economies such as India and Brazil, among other countries, is aiding internet users' gain. For instance, according to the India Brand Equity Foundation, internet penetration in India accounted for 45% in January 2021 from 4% in 2007. Also, according to the data of the Global Web Index, it indicates that more than 1 billion people across the world 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, growing sports adoption, and video game advertising. The rise of video games through consoles is growing and might show potential growth in the coming years. In response to this trend, connectivity and entertainment providers could target console gamers by offering console-related video services, such as live sports and fast broadband, and monetizing the audience more optimally through OTT ad-supported services. Further, many companies have witnessed a tremendous spike in MMORPG games in the recent period. For instance, Pokemon Go, developed by Niantic, Nintendo, and The Pokémon Company, was downloaded by over 1 billion users. Also, Fortnite attracted nearly 250 million gamers in less than two years of its launch.
• One of the factors limiting the expansion of the MMORPG market is the absence of distributed network connections. In places with inadequate broadband infrastructure, creating a server for client-server MMORPGs is particularly challenging. Many players can connect simultaneously to the same virtual world due to the game's immersive play experience. In order to avoid affecting the player's gaming experience, the game design needs strong and consistent connections. The lack of extensive network access in developing countries makes players lose interest in gaming. Such issues may hamper the growth of the global MMORPG market during the projected period.
• With the outbreak of COVID-19, the market witnessed 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 and keeping safe from being affected. The mobile platform is witnessing a significant increase in consumer engagement with mobile-based gaming, especially in mobile-first markets, such as Asia, the 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 TrendsMobile and Tablet Platform are Expected to Grow at a Considerable Rate

• MMORPG gaming has exploded in the past couple of years, especially on mobile platforms like smartphones and tablets. 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 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 prefer games on mobile devices. The increasing services and investment in 5G infrastructure are also vital to 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.​
• MMORPG games are being provided on the android platform, which 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 MMORPGs on Mobile, where charges range from USD 10.99 per month to USD 99.99 per year.
• All the MMORPG game-developing companies are releasing their products for mobile phones due to their market potential. For example, Ashfall, a shooter MMORPG from NetEase, has been released. Ashfall, formerly known as Project 56, would be launched on PCs and mobile devices in 2023.
• While multiple gaming options are available for smartphones, the screen size might be too limiting to get an immersive gaming experience. A gaming tablet has been an excellent product for consumers who want to enjoy games on the go but want the option of a larger screen. Multiple gaming phones are available and more portable than a tablet. However, the bigger screen, much more battery life, and excellent processing power of the tablets have been the most important factors for their growth in the market.

Latin America Is Witnessing The Highest Growth Rate

• Latin America is experiencing the fastest growth in the MMORPG industry. Global technicians' knowledge of the local game is more crucial than ever due to the region's growing market potential. The region has had substantial growth in both cellphone penetration and internet connectivity. According to GSMA, 73% of the region's population would be using mobile devices by 2025. Meanwhile, 80% of all internet connections in the region are anticipated to come from cell phones.
• In addition, according to the report, the region will have 62 million 5G connections 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, mobile gamers also increased due to the lockdown situation. Hence this considerable demand can create substantial market potential for the major vendors in this market.
• Brazil is one of the most promising markets in Latin America because of the country's young population's growing demand for mobile games and its rapidly urbanizing population. According to the World Bank, one-third of Latin America's youth population is made up of Brazilian youth, which accounts for 19% of the country's population between the ages of 15 and 24. This huge youth population is driving the MMORPG market in the region.
• Additionally, Telefonica and NEC Corporation would conduct pre-commercial open RAN testing in Brazil. For its 4G and 5G RAN growth in terms of deployments between 2022 and 2025, the operator expects to open RAN to account for up to 50% of the growth according to GSMA, which is showing the growth of internet penitration in the region and would indirectly drive the MMORPG market in Latin America.

Competitive Landscape

The MMORPG gaming market is fragmented in nature and comprises many global and regional players. These gaming developers are investing more in 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.

• March 2022 - The release of Dungeon & Fighter Mobile in Korea was announced by NEXON Co. Ltd, a global leader in virtual worlds. The new game expands Dungeon & Fighter's arcade action and enjoyment to mobile, the gaming industry's fastest-growing platform. On one of eight servers that can accommodate a total of one million players concurrently, the players first choose a character.
• June 2021 - Amazon Games and Smilegate RPG announced that MMOARPG Lost Ark would be available in North America and Europe on PC in 2021. Players can sign up at playostark.com to learn more about the game and the upcoming beta, which is coming later this summer. Lost Ark is a AAA free-to-play, massively multiplayer online action role-playing game that is only currently available in Korea, Japan, and Russia, where it boasts millions of active players.
• March 2021 - DaHua studios of global games developer and operator NetEase Games and Codemasters launched a new, cross-platform racing game, Racing Master. It is available on both iOS and Android during its beta test. Racing Master will follow on other formats, with a Beta available in the US and Canada from March. Racing Master is a real-time simulation racing game. To become a racing champion, one must race against players in different cities worldwide.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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