How Big is the Global Mobile Gaming Industry?
- Mobile gaming revenue for 2020 is estimated at $85 billion, more than half of the sector’s estimated $165 billion
- Despite the launch of high-profile consoles, most gaming companies are focusing on platform-agnostic subscription services that can penetrate mobile
The Mobile Gaming Takeover
While the gaming market spotlight is focused on new consoles and games this holiday season, the bigger focus for insiders continues to be the mobile sector.
Over the last 20 years, mobile gaming has gone from the industry’s entertaining afterthought to its largest source of revenue—in 2020, the sector is estimated to have generated around $85 billion.
In light of COVID-19 keeping many consumers at home, gaming companies like Electronic Arts and Activision Blizzard have reported higher year-over-year revenues and greater market penetration than ever before.
Companies Race to Capitalize on Mobile Gaming
The massive industry growth hasn’t gone unnoticed by companies outside of the gaming sector. In fact, it has emboldened many to make billion-dollar entries into the gaming market that failed to pan out in the early 2000s.
In the bid to capture the cloud-service sphere and become the “Netflix” of gaming, major services have been launched by Microsoft, Sony, Nokia, Amazon, and Google.
At the same time, publishers have been racing to consolidate gaming franchises on the path towards building massive recurring revenue streams.
|Date||Acquirer||Target and Sector||Deal Value (US$)|
|Apr. 2014||Oculus - VR||$3.0 Billion|
|Aug. 2014||Amazon||Twitch - Streaming||$1.0 Billion|
|Nov. 2014||Microsoft||Mojang - Games||$2.5 Billion|
|Feb. 2016||Activision Blizzard||King - Games||$5.9 Billion|
|Jun. 2016||Tencent||Supercell - Games||$8.6 Billion|
|Feb. 2020||Embracer Group||Saber Interactive - Games||$0.5 Billion|
|Sep. 2020||Microsoft||ZeniMax Media - Games||$7.5 Billion|
|Nov. 2020||Take-Two Interactive||Codemasters - Games||$1.0 Billion|
With Sony and Microsoft’s new consoles fresh to market (and constantly sold out), next generation games hitting multiple platforms, and cloud services kicking off in earnest, traditional gaming sectors might finally start catching up to mobile.
But as the global proliferation of smartphones continues to grow, it will be an uphill challenge. With 2.7 billion estimated gamers already and growing, how much higher can the mobile gaming wave rise?
»Want a full breakdown of gaming revenue by sector? Read our full article 50 Years of Gaming History
Where does this data come from?
Source: Pelham Smithers.
Details: Research firm’s annual analysis of reported and estimated sector revenue.
Notes: This data was collected in September of 2020 and includes estimates for end-of-year.
Will Connected Cars Break the Internet?
By 2025, connected cars could produce 10 exabytes (exabyte = 1B gigabytes) of data per month, a thousand-fold increase over current volumes.
- Connected cars could be producing up to 10 exabytes of data per month, a thousand-fold increase over current data volumes.
- This has serious implications for policymakers, manufacturers, and local network infrastructure.
Modern connected cars are more like computers on wheels, when compared to the dumb cars that dominated the twentieth century.
Today’s connected cars come stocked with as many as 200 onboard sensors, tracking everything from engine temperature to seatbelt status. And all those sensors create reams of data, which will increase exponentially as the autonomous driving revolution gathers pace.
With carmakers planning on uploading 50-70% of that data, this has serious implications for policymakers, manufacturers, and local network infrastructure.
In this visualization from our sponsor Global X ETFs, we ask the question: will connected cars break the internet?
Data is a Plural Noun
Just how much data could it possibly be?
There are lots of estimates out there, from as much as 450 TB per day for robotaxis, to as little as 0.383 TB per hour for a minimally connected car. This visualization adds up the outputs from sensors found in a typical connected car of the future, with at least some self-driving capabilities.
The focus is on the kinds of sensors that an automated vehicle might use, because these are the data hogs. Sensors like the one that turns on your check-oil-light probably doesn’t produce that much data. But a 4K camera at 30 frames a second, on the other hand, produces 5.4 TB per hour.
|Sensor||Sensors per Vehicle||Data Produced|
|Vehicle Motion, GNSS/GPS, IMU||n/a||<0.1 Mbit/s|
|Total Data||3-40 Gbit/s/vehicle|
All together, you could have somewhere between 1.4 TB and 19 TB per hour. Given that U.S. drivers spend 17,600 minutes driving per year, a vehicle could produce between 380 and 5,100 TB every year.
To put that upper range into perspective, the largest commercially available computer storage—the 100 TB SSD Exadrive from Nimbus—would be full in 5 hours. A standard Blu-ray disc (50 GB) would be full in under 2 seconds.
Lag is a Drag
The problem is twofold. In the first place, the internet is better at downloading than uploading. And this makes sense when you think about it. How often are you uploading a video, versus downloading or streaming one?
Average global mobile download speeds were 30.78 MB/s in July 2022, against 8.55 MB/s for uploads. Fixed broadband is much higher of course, but no one is suggesting that you connect really, really long network cables to moving vehicles.
Ultimately, there isn’t enough bandwidth to go around. Consider the types of data traffic that a connected car could produce:
- Vehicle-to-vehicle (V2V)
- Vehicle-to-grid (V2G)
- Vehicles-to-people (V2P)
- Vehicles-to-infrastructure (V2I)
- Vehicles-to-everything (V2E)
The network just won’t be able to handle it.
Moreover, lag needs to be relatively non-existent for roads to be safe. If a traffic camera detects that another car has run a red light and is about to t-bone you, that message needs to get to you right now, not in a few seconds.
Full to the Gunwales
The second problem is storage. Just where is all this data supposed to go? In 2021, total global data storage capacity was 8 zettabytes (ZB) and is set to double to 16 ZB by 2025.
One study predicted that connected cars could be producing up to 10 exabytes per month, a thousand-fold increase over current data volumes.
At that rate, 8 ZB will be full in 2.2 years, which seems like a long time until you consider that we still need a place to put the rest of our data too.
At the Bleeding Edge
Fortunately, not all of that data needs to be uploaded. As already noted, automakers are only interested in uploading some of that. Also, privacy legislation in some jurisdictions may not allow highly personal data, like a car’s exact location, to be shared with manufacturers.
Uploading could also move to off-peak hours to even out demand on network infrastructure. Plug in your EV at the end of the day to charge, and upload data in the evening, when network traffic is down. This would be good for maintenance logs, but less useful for the kind of real-time data discussed above.
For that, Edge Computing could hold the answer. The Automotive Edge Computing Consortium has a plan for a next generation network based on distributed computing on localized networks. Storage and computing resources stay closer to the data source—the connected car—to improve response times and reduce bandwidth loads.
Invest in the Future of Road Transport
By 2030, 95% of new vehicles sold will be connected vehicles, up from 50% today, and companies are racing to meet the challenge, creating investing opportunities.
Learn more about the Global X Autonomous & Electric Vehicles ETF (DRIV). It provides exposure to companies involved in the development of autonomous vehicles, EVs, and EV components and materials.
And be sure to read about how experiential technologies like Edge Computing are driving change in road transport in Charting Disruption. This joint report by Global X ETFs and the Wall Street Journal is also available as a downloadable PDF.
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