Major players in the online microtransaction market are SmileGate (CrossFire); Riot Games, Inc.; Nexon Co., Ltd.; Wargaming.net; NCSoft; Activision Blizzard Inc.; Electronic Arts Inc.; Valve Corporation; Tencent Holdings Ltd.; NetEase Inc.; Microsoft Corp.; GungHo Online Entertainment Inc.; CyberAgent Inc.; The Walt Disney Co.; Ubisoft Entertainment.; Niantic Inc. and Take-Two Interactive.
The global online microtransaction market will grow from $67.94 billion in 2022 to $76.66 billion in 2023 at a compound annual growth rate (CAGR) of 12.8%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The online microtransaction market is expected to grow to $117.95 billion in 2027 at a CAGR of 11.4%.
The online microtransaction market includes revenues earned by entities by providing in-game virtual goods.Microtransactions often appear in free-to-play games that do not have any cost for downloading the game and only include the online cost for virtual goods.
Microtransactions are done to unlock specific features or enhance the special abilities, content or character in a game.In-game purchases are items or points a player purchases for use within a virtual world to improve a character or enhance the playing experience.
Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.The value of goods in this market includes related services sold by the creators of the goods.
Only goods and services traded between entities or sold to end consumers are included.
Online microtransactions are in-game purchases of virtual items for small amounts of money.
The Asia Pacific was the largest region in the online microtransaction market in 2022.Asia Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in the online microtransaction market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of online microtransaction are in-game currencies, random chance purchases, in-game items, expiration.In-game purchases are items or points purchased by a player for use within a virtual world to improve a character or enhance the playing experience.
The various model involved are prepay model, postpay model, and others and are used in mobile, console and PCs.
The expansion of the gaming industry is to act as a major driver for the development of the online microtransaction market.Online microtransaction uses real money to gain access to currency in-game or virtual items, which improves the gaming experience of the player.
According to Ernst & Young Global Limited’s report published in 2019, the global games market is expected to reach $ 196.0 billion by the end of 2022, growing at a CAGR of 10.0%. Moreover, in January 2022, according to an article published by Entertainment Software Association, a US-based trade association of the video game industry, in the United States, total consumer spending on video games reached $60.4 billion in 2021, an increase of 8% from the previous year. Spending on content as a whole increased by 7% from 2020 to $51.7 billion in 2021. Hardware saw a 14 percent increase, reaching $6.1 billion. Spending on accessories by consumers increased by 2% to $2.7 billion. Therefore, the growth of the gaming and video gaming industry is expected to propel the revenues for online microtransaction market in the near future.
Stringent regulations imposed on the microtransactions are projected to limit the market growth during the period.For instance, in July 2022, according to an article published by the Government of UK, in September 2020, Department for Digital, Culture, Media & Sport (DCMS) issued a call for information regarding loot boxes in video games because to worries that they can be harmful.
It was created in conjunction with our examination of the Gambling Act.Evidence from a variety of sources has been gathered in response to the call for evidence.
Therefore, stringent regulations imposed by the government on setting the limit of transactions is to have an adverse effect on the growth of the online microtransactions market over the forecast period.
The companies adopting new loot box policies in order to adhere to the guidelines of the U.S. game industry trade group, the Entertainment Software Association is a major trend in the online microtransaction market. Companies such as Microsoft, Nintendo, and Sony are planning to have new policies by the end of 2020. Consequently, the players aiming to adopt new disclosure policies of a loot box is the latest trend shaping the growth of the online microtransactions market.
In April 2020, Riot Games, an American video game developer, publisher, and esports tournament organizer acquired Hypixel Studios Inc. for an undisclosed amount. This acquisition represents the expansion of a long-standing relationship, with Hypixel Studios gaining access to Riot Games’ experience in developing and publishing acclaimed, player-focused games. Hypixel Studios Inc., a Canada based Computer game developer.
The countries covered in the online microtransaction market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The online microtransaction market research report is one of a series of new reports that provides online microtransaction market statistics, including online microtransaction industry global market size, regional shares, competitors with an online microtransaction market share, detailed online microtransaction market segments, market trends and opportunities, and any further data you may need to thrive in the online microtransaction industry. This online microtransaction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.