The ubiquity of good wireless broadband and advanced handsets is having ripple effects: The global mobile entertainment market was valued at approximately $58.44 billion in 2016 and is expected to reach $128.12 billion by 2022, according to Zion Market Research.
And there’s nowhere to go but up. The firm said in a fresh report that the market is expected to grow at a CAGR of around 17.06% between 2017 and 2022.
Mobile entertainment, defined as games, different applications, videos and music, is tightly tied to device trends.
“On account of the consequent rise in mobile applications due to the technological advancement, the market for mobile entertainment is growing continuously,” the report noted. “The increasing population and easy availability of network accessibility is expected to boost the sales of mobile entertainment applications. The user does not need to pay for every mobile application every time, therefore, the demand for mobile entertainment applications such as Spotify, Temple Run 2, Neko Atsume: Kitty Collection, Amazon Kindle, etc. is increasing continuously. Affordable prices of smartphones and rising demand from the young population are some of the emerging trends which are likely to open new market avenues in the near future.”
Asia-Pacific dominated the mobile entertainment market due to the high penetration of smartphones and the advancement in technology in the region. The electronics industry in Asia-Pacific is growing at a rapid pace due to increasing disposable income, Zion said; China and India are the leading contributors to the mobile entertainment market in Asia-Pacific. China is expected to account for 28.34% of the global smartphone market in 2018, and Chinese smartphone companies reported 40% share in the Indian smartphone market too, which was the second largest in the world in 2015.
North America and Europe together recognised a major market share in 2015. Higher purchasing power along with technological awareness in users is expected to drive the regional mobile entertainment industry in the coming years. The mobile entertainment market in North America is expected to have significant growth during the years to come owing to the balanced adoption rate of smartphones.
Latin America is one of the fastest growing regional markets for mobile entertainment due to developing mobile applications and increasing adoption of smartphones. In Latin America, the smartphone penetration per capita was 7.6% in 2011. In 2017, the smartphone penetration per capita is projected to reach 39.1%.
The Middle East and Africa are likely to have moderate growth for the mobile entertainment market during the estimated five years. Shifting technological preferences in the young population are expected to fuel the mobile entertainment market within the forecast period. The upcoming trends in mobile entertainment, like an increase in adoption of cloud services for streaming, opens up a new opportunity for the market in coming years.