Online Games - MENA

MENA

Highlights

Revenue in the Online Games market market in MENA is projected to reach US$515.50m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.02%, which will result in a projected market volume of US$690.70m by 2029.
In the Online Games market market within MENA, the number of users is anticipated to reach 69.5m users by 2029.
User penetration in MENA will be 10.6% in 2024 and is expected to rise to 11.5% by 2029.
In a global context, the majority of revenue will be generated China, which is projected to reach US$6.53bn in 2024.
The average revenue per user (ARPU) in the Online Games market market in MENA is projected to be US$8.54 in 2024.
The MENA region is witnessing a surge in online gaming popularity, driven by increasing internet penetration and a youthful, tech-savvy population.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Online Games market in the Middle East and North Africa (MENA) region has seen significant growth in recent years.

Customer preferences: Customers in the MENA region have shown a strong preference for online games, with a particular focus on mobile gaming. This can be attributed to the high smartphone penetration rate in the region, as well as the increasing availability of affordable mobile data plans. Additionally, the young population in MENA, which is known for its tech-savviness, has also contributed to the popularity of online games.

Trends in the market: One of the key trends in the online games market in MENA is the rise of local game developers. In the past, the market was dominated by international game developers, but there has been a shift towards locally produced games. This can be attributed to the increasing demand for culturally relevant content and the rise of local talent in the gaming industry. Local game developers are able to cater to the specific preferences and tastes of the MENA audience, resulting in a more engaged and loyal user base. Another trend in the market is the increasing popularity of multiplayer online games. As internet connectivity improves in the region, more players are able to participate in online gaming communities and compete against each other. This has led to the emergence of esports in MENA, with tournaments and competitions attracting a growing number of participants and viewers. The rise of esports has also created new opportunities for game developers, as they can monetize their games through sponsorships and advertising.

Local special circumstances: One of the unique aspects of the online games market in MENA is the cultural and religious sensitivities that need to be taken into account. Game developers need to ensure that their content is in line with local values and norms, which may differ from those in other regions. This requires careful localization and adaptation of games to suit the MENA audience. Additionally, there are certain restrictions on content that is considered inappropriate or offensive, which can impact the types of games that are available in the region.

Underlying macroeconomic factors: The growth of the online games market in MENA can also be attributed to the overall economic development in the region. As countries in MENA continue to diversify their economies and invest in technology and innovation, there is a greater focus on the digital sector, including the gaming industry. This has led to increased investment in game development studios and infrastructure, as well as government support for the growth of the online games market. Additionally, the rising disposable incomes in the region have also contributed to the increased spending on entertainment, including online games. In conclusion, the Online Games market in MENA has experienced significant growth due to customer preferences for mobile gaming, the rise of local game developers, the increasing popularity of multiplayer online games, and the unique cultural and religious sensitivities in the region. These trends are supported by underlying macroeconomic factors such as economic development and rising disposable incomes. As the market continues to evolve, it is expected that the online games industry in MENA will continue to thrive and offer new opportunities for both local and international game developers.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Video Games market. Digital video games are defined as fee-based video games distributed over the internet. These include online games, download games, mobile games, and gaming networks. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.