Online Micro Transaction Market Overview
The Online Micro Transaction Market size was valued at USD 73.69 Billion in 2023 and is projected to reach USD 212.71 Billion by 2032, registering a CAGR of 12.5% from 2023 to 2032.
A Micro Transaction is a business concept in which users can pay small amounts of money for virtual things. Micro Transactions are common in free-to-play games, which means there is no charge to download the game, only to purchase virtual goods online. Micro Transactions have had the most profound impact on the video game business, which is always changing. Game creators have figured out how to make the most of this new cash stream. Micro Transactions are believed to be used by only 5 to 20% of gaming communities, and the quantities paid to vary.
- According to figures from the Entertainment Software Association (ESA) and the NPD Group, the video game industry made a record-breaking $36 billion in revenue in 2017. Riot, the corporation that owns and operates the online game "League of Legends," (LOL) earns huge profits due to the Micro Transactions. LOL is a free game that is played by tens of millions of people around the world. In-game purchases account for almost all of its revenue. The growing popularity of online gaming is expected to propel the development of the online transaction market over the forecasted timeframe.
Market Dynamics and Key Factors of Online Micro Transaction
Drivers:
Rise of the Gaming Industry.
- The concept of online connectivity transformed the gaming industry. DLC (downloadable content) has proven to be effective in encouraging gamers to pay for things after the game has been released. DLC is a forerunner to what is now known as online Micro Transactions and is an aspect of gaming's secondary market. Online Micro Transactions have had the most significant impact on the video game industry, which is constantly changing. Game developers have figured out how to make the most of this new cash stream. Only 5 to 20% of game communities are thought to engage in online Micro Transactions, and the amounts they spend varies. However, the cash earned by free-to-play games is large, this is still a significant amount. These companies' executives want to monetize the non-participating player base in the online Micro Transaction community thus, driving further growth of the online Micro Transaction market over the projected timeframe.
Restraints:
Different gaming experiences for players not partaking in online Micro Transaction.
- The Micro Transaction-based approach to generating money from video games is at the forefront of the gaming industry. This is where the trouble starts since most developers struggle to keep the balance in online Player versus Player games and end up creating pay-to-win games. Micro Transactions are used in most games to provide a better experience and content, which provides an unfair experience for those who use the default game content. Despite having strong skills, this type of DLC (downloadable content) often outclasses players with default content thus, hampering the development of the online Micro Transaction market during the projected timeframe.
Opportunities:
Gaming Industry, Online Tournaments, and Live streaming
- With much of the world adopting social distancing for much of 2020 and into 2021, interest in the multibillion-dollar online gaming industry has continued to grow, with people who have never played before taking up the hobby. Players took use of their unprecedented free time to learn new skills and tactics that could one day be shown on television as part of an esports championship as popular as the Super Bowl or the World Cup final. As the number of people who play online games grows, so does the amount of money spent on in-app purchases. Users can spend real money for features or items while playing a mobile game using online Micro Transactions or in-app purchases. Players that spend money on in-app purchases get a premium gaming experience. At the same time, it is a very valuable and popular revenue source for game developers thus, creating a profitable opportunity for the market players.
Segmentation of Online Micro Transaction Market
- By payment model, prepay segment is anticipated to dominate the growth of the online Micro Transaction market. With the prepay model, a customer authorizes the game developer to charge their card for a certain amount, which is usually converted into a virtual currency. That currency can then be used to purchase game items. Prepay transactions avoid the undesired charges that may arise in the post-pay transaction method thus, strengthening the growth of the segment.
- By type, the in-game items segment is expected to lead the development of the online Micro Transaction market during the analysis period. One can buy in-game items and pay to unlock a variety of characters, each with their own set of skills and playstyle. The most popular in-game item skins. Skins merely alter a character's appearance but provide no additional functionality. Skins, on the other hand, give the character more personality, and given the psychological investment players have made in the game, it's almost as if they're buying clothes for themselves. Gun skins are also popular among users, and popular games such as PUBG and Fortnite offer several gun skins. The growing spending on in-game items is expected to increase over the analysis period.
- By device, the smartphones segment is expected to have the highest share of the online Micro Transaction market. According to a Statista survey, 68.1 percent of respondents claimed they played games on their smartphones, making it the most popular gaming device on the globe. Mobile gaming gives players greater accessibility, gamers can play games anytime and anywhere. Moreover, mobile gaming has helped people living far apart to come together. Mobile gaming has become a trend to maintain family relations and this trend is expected to grow over the projected timeframe. Most individuals are getting exposed to games due to the growing smartphone penetration. Individuals playing the game on a smartphone are more liable to purchase in-game items and currencies thus, supporting the development of the segment.
Regional Analysis of Online Micro Transaction Market
- The Asia-Pacific region is anticipated to lead the growth of the online Micro Transaction market over the forecast period. Gamers in South Asian countries are gaining access to an ever-changing ecosystem. Users in this region are maturing in their approach to numerous genres, casual, mid-core, and paid games, owing to the increasing smartphone and internet penetration and the world's lowest data tariff. According to a PwC report, the total revenue generated by the in-game Micro Transactions accounted for one-third of the total games and esports in Australia. Moreover, the growing popularity of PlayerUnknown's Battlegrounds (PUBG) Mobile, Among Us, and Pokémon GO is expected to propel the growth of the online Micro Transaction market over the forecasted timeframe.
- The North American region is anticipated to have the second-highest share of the online Micro Transaction market during the projected timeframe. According to the latest Entertainment Software Association (ESA) report, the United States has a total of 226.6 million video game players of all ages, up nearly 6% from 214.4 million in 2020. The estimates vary depending on the source and demographics surveyed, but it is estimated that three out of every four Americans play video games on various consoles, with more than half of those playing on their mobile phones. As 4G speeds improve and core users migrate to 5G, more individuals are opting to play games on their smartphones, it is anticipated that mobile gaming will be an ongoing and major contributor to the development of the online Micro Transaction market projected timeframe.
- The online Micro Transaction market in the European region is anticipated to develop at a significant growth rate attributed to the growing popularity of gaming consoles and PC gaming. Beyond the sale of game titles and gear, the rise of subscription gaming services and cloud gaming has opened up new revenue streams. Without the assistance of a game publishing company, independent game developers can create and launch their games. Gamers, on the other hand, can make money through tournaments and social media streams. The online Micro Transaction market in the European Union is powered by the vibrant gaming markets of Germany, the United Kingdom, France, Italy, and Spain. According to Statista, the UK, Germany, France, Italy, and Spain had 46.7, 39.1, 36.5, 30.6, and 24.6 million gamers in 2021. The study also stated that mobile phones were the most popular devices to game on among UK gaming audiences. The gaming population is expected to increase over the forecasted timeframe thus, boosting the growth of the online transaction market.
COVID-19 Impact on Online Micro Transaction market:
- During the initial outbreak of the global COVID-19 pandemic in spring 2020, gaming immediately became one of the most popular hobbies, with user involvement and spending soaring between February and April of that year. Gen Z and Millennials, in particular, spent more time gaming since it was an easy way to pass the time amid initial stay-at-home orders, lockdowns, and social distancing. Global online gaming spending on in-game content and paid downloads climbed by 12 percent and 21 percent, respectively, in 2020, reflecting the expansion of digital revenues. The number of viewers of gaming video content increased to 1.2 billion in 2020, up from 944 million in 2019. Among the popular live-streaming gaming networks, Twitch is ranked number one followed by YouTube Gaming and Facebook Gaming. Gaming live streams are inherently social since the ability to talk with streamers and other viewers increase the shared experience of playing a game. Video streamers saw this as an opportunity and began accepting funds via online Micro Transactions. To recapitulate, the COVID-19 pandemic boosted the number of gamers, as well as the number of people who watched live streams. As a result, in the forecasted timeframe, the online Micro Transaction market is expected to boom.
Players Covered in Online Micro Transaction market are :
- Activision Blizzard Inc.
- Tencent Holdings Ltd.
- NCSoft
- Riot Games Inc.
- Nexon Co. Ltd.
- SmileGate (CrossFire)
- Wargaming.net
- NetEase Inc.
- Valve Corporation and other major players.
Recent Industry Developments in Online Micro Transaction Market
- In February 2024, following criticism from players regarding post-launch microtransactions in Tekken 8, the series' creative director clarified the necessity for ongoing funding to support modern games. The newly introduced Tekken Shop will offer DLC costumes exclusively through microtransactions, prompting dissatisfaction among fans who feel this adds to the game’s $70 price tag. Developers aim to ensure continued support and content for the game, emphasizing the challenges of maintaining player engagement without additional revenue streams
Online Micro Transaction Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 73.69 Bn. |
Forecast Period 2023-32 CAGR: |
12.5% |
Market Size in 2032: |
USD 212.71 Bn. |
Segments Covered: |
By Type |
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By Device |
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By Payment Model |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Research Objectives
1.2 Research Methodology
1.3 Research Process
1.4 Scope and Coverage
1.4.1 Market Definition
1.4.2 Key Questions Answered
1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
3.1 By Payment Model
3.2 By Type
3.3 By Device
Chapter 4: Market Landscape
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Supplier
4.1.2 Threat of New Entrants
4.1.3 Threat of Substitutes
4.1.4 Competitive Rivalry
4.1.5 Bargaining Power Among Buyers
4.2 Industry Value Chain Analysis
4.3 Market Dynamics
4.3.1 Drivers
4.3.2 Restraints
4.3.3 Opportunities
4.5.4 Challenges
4.4 Pestle Analysis
4.5 Technological Roadmap
4.6 Regulatory Landscape
4.7 SWOT Analysis
4.8 Price Trend Analysis
4.9 Patent Analysis
4.10 Analysis of the Impact of Covid-19
4.10.1 Impact on the Overall Market
4.10.2 Impact on the Supply Chain
4.10.3 Impact on the Key Manufacturers
4.10.4 Impact on the Pricing
Chapter 5: Online Micro Transaction Market by Payment Model
5.1 Online Micro Transaction Market Overview Snapshot and Growth Engine
5.2 Online Micro Transaction Market Overview
5.3 Prepay
5.3.1 Introduction and Market Overview
5.3.2 Historic and Forecasted Market Size (2017-2032F)
5.3.3 Key Market Trends, Growth Factors and Opportunities
5.3.4 Prepay: Grographic Segmentation
5.4 Post-Pay
5.4.1 Introduction and Market Overview
5.4.2 Historic and Forecasted Market Size (2017-2032F)
5.4.3 Key Market Trends, Growth Factors and Opportunities
5.4.4 Post-Pay: Grographic Segmentation
5.5 Pay-As-You-Go
5.5.1 Introduction and Market Overview
5.5.2 Historic and Forecasted Market Size (2017-2032F)
5.5.3 Key Market Trends, Growth Factors and Opportunities
5.5.4 Pay-As-You-Go: Grographic Segmentation
Chapter 6: Online Micro Transaction Market by Type
6.1 Online Micro Transaction Market Overview Snapshot and Growth Engine
6.2 Online Micro Transaction Market Overview
6.3 Random Chance Purchases
6.3.1 Introduction and Market Overview
6.3.2 Historic and Forecasted Market Size (2017-2032F)
6.3.3 Key Market Trends, Growth Factors and Opportunities
6.3.4 Random Chance Purchases: Grographic Segmentation
6.4 In-Game Currencies
6.4.1 Introduction and Market Overview
6.4.2 Historic and Forecasted Market Size (2017-2032F)
6.4.3 Key Market Trends, Growth Factors and Opportunities
6.4.4 In-Game Currencies: Grographic Segmentation
6.5 Expiration
6.5.1 Introduction and Market Overview
6.5.2 Historic and Forecasted Market Size (2017-2032F)
6.5.3 Key Market Trends, Growth Factors and Opportunities
6.5.4 Expiration: Grographic Segmentation
6.6 In-Game Items
6.6.1 Introduction and Market Overview
6.6.2 Historic and Forecasted Market Size (2017-2032F)
6.6.3 Key Market Trends, Growth Factors and Opportunities
6.6.4 In-Game Items: Grographic Segmentation
6.7 Others
6.7.1 Introduction and Market Overview
6.7.2 Historic and Forecasted Market Size (2017-2032F)
6.7.3 Key Market Trends, Growth Factors and Opportunities
6.7.4 Others: Grographic Segmentation
Chapter 7: Online Micro Transaction Market by Device
7.1 Online Micro Transaction Market Overview Snapshot and Growth Engine
7.2 Online Micro Transaction Market Overview
7.3 PC
7.3.1 Introduction and Market Overview
7.3.2 Historic and Forecasted Market Size (2017-2032F)
7.3.3 Key Market Trends, Growth Factors and Opportunities
7.3.4 PC: Grographic Segmentation
7.4 Gaming Console
7.4.1 Introduction and Market Overview
7.4.2 Historic and Forecasted Market Size (2017-2032F)
7.4.3 Key Market Trends, Growth Factors and Opportunities
7.4.4 Gaming Console: Grographic Segmentation
7.5 Smart Phones
7.5.1 Introduction and Market Overview
7.5.2 Historic and Forecasted Market Size (2017-2032F)
7.5.3 Key Market Trends, Growth Factors and Opportunities
7.5.4 Smart Phones: Grographic Segmentation
7.6 Others
7.6.1 Introduction and Market Overview
7.6.2 Historic and Forecasted Market Size (2017-2032F)
7.6.3 Key Market Trends, Growth Factors and Opportunities
7.6.4 Others: Grographic Segmentation
Chapter 8: Company Profiles and Competitive Analysis
8.1 Competitive Landscape
8.1.1 Competitive Positioning
8.1.2 Online Micro Transaction Sales and Market Share By Players
8.1.3 Industry BCG Matrix
8.1.4 Ansoff Matrix
8.1.5 Online Micro Transaction Industry Concentration Ratio (CR5 and HHI)
8.1.6 Top 5 Online Micro Transaction Players Market Share
8.1.7 Mergers and Acquisitions
8.1.8 Business Strategies By Top Players
8.2 ACTIVISION BLIZZARD INC.
8.2.1 Company Overview
8.2.2 Key Executives
8.2.3 Company Snapshot
8.2.4 Operating Business Segments
8.2.5 Product Portfolio
8.2.6 Business Performance
8.2.7 Key Strategic Moves and Recent Developments
8.2.8 SWOT Analysis
8.3 TENCENT HOLDINGS LTD.
8.4 NCSOFT
8.5 RIOT GAMES INC.
8.6 NEXON CO. LTD.
8.7 SMILEGATE (CROSSFIRE)
8.8 WARGAMING.NET
8.9 NETEASE INC.
8.10 VALVE CORPORATION
8.11 OTHER MAJOR PLAYERS
Chapter 9: Global Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
9.1 Market Overview
9.2 Historic and Forecasted Market Size By Payment Model
9.2.1 Prepay
9.2.2 Post-Pay
9.2.3 Pay-As-You-Go
9.3 Historic and Forecasted Market Size By Type
9.3.1 Random Chance Purchases
9.3.2 In-Game Currencies
9.3.3 Expiration
9.3.4 In-Game Items
9.3.5 Others
9.4 Historic and Forecasted Market Size By Device
9.4.1 PC
9.4.2 Gaming Console
9.4.3 Smart Phones
9.4.4 Others
Chapter 10: North America Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
10.1 Key Market Trends, Growth Factors and Opportunities
10.2 Impact of Covid-19
10.3 Key Players
10.4 Key Market Trends, Growth Factors and Opportunities
10.4 Historic and Forecasted Market Size By Payment Model
10.4.1 Prepay
10.4.2 Post-Pay
10.4.3 Pay-As-You-Go
10.5 Historic and Forecasted Market Size By Type
10.5.1 Random Chance Purchases
10.5.2 In-Game Currencies
10.5.3 Expiration
10.5.4 In-Game Items
10.5.5 Others
10.6 Historic and Forecasted Market Size By Device
10.6.1 PC
10.6.2 Gaming Console
10.6.3 Smart Phones
10.6.4 Others
10.7 Historic and Forecast Market Size by Country
10.7.1 U.S.
10.7.2 Canada
10.7.3 Mexico
Chapter 11: Europe Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
11.1 Key Market Trends, Growth Factors and Opportunities
11.2 Impact of Covid-19
11.3 Key Players
11.4 Key Market Trends, Growth Factors and Opportunities
11.4 Historic and Forecasted Market Size By Payment Model
11.4.1 Prepay
11.4.2 Post-Pay
11.4.3 Pay-As-You-Go
11.5 Historic and Forecasted Market Size By Type
11.5.1 Random Chance Purchases
11.5.2 In-Game Currencies
11.5.3 Expiration
11.5.4 In-Game Items
11.5.5 Others
11.6 Historic and Forecasted Market Size By Device
11.6.1 PC
11.6.2 Gaming Console
11.6.3 Smart Phones
11.6.4 Others
11.7 Historic and Forecast Market Size by Country
11.7.1 Germany
11.7.2 U.K.
11.7.3 France
11.7.4 Italy
11.7.5 Russia
11.7.6 Spain
11.7.7 Rest of Europe
Chapter 12: Asia-Pacific Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
12.1 Key Market Trends, Growth Factors and Opportunities
12.2 Impact of Covid-19
12.3 Key Players
12.4 Key Market Trends, Growth Factors and Opportunities
12.4 Historic and Forecasted Market Size By Payment Model
12.4.1 Prepay
12.4.2 Post-Pay
12.4.3 Pay-As-You-Go
12.5 Historic and Forecasted Market Size By Type
12.5.1 Random Chance Purchases
12.5.2 In-Game Currencies
12.5.3 Expiration
12.5.4 In-Game Items
12.5.5 Others
12.6 Historic and Forecasted Market Size By Device
12.6.1 PC
12.6.2 Gaming Console
12.6.3 Smart Phones
12.6.4 Others
12.7 Historic and Forecast Market Size by Country
12.7.1 China
12.7.2 India
12.7.3 Japan
12.7.4 Singapore
12.7.5 Australia
12.7.6 New Zealand
12.7.7 Rest of APAC
Chapter 13: Middle East & Africa Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
13.1 Key Market Trends, Growth Factors and Opportunities
13.2 Impact of Covid-19
13.3 Key Players
13.4 Key Market Trends, Growth Factors and Opportunities
13.4 Historic and Forecasted Market Size By Payment Model
13.4.1 Prepay
13.4.2 Post-Pay
13.4.3 Pay-As-You-Go
13.5 Historic and Forecasted Market Size By Type
13.5.1 Random Chance Purchases
13.5.2 In-Game Currencies
13.5.3 Expiration
13.5.4 In-Game Items
13.5.5 Others
13.6 Historic and Forecasted Market Size By Device
13.6.1 PC
13.6.2 Gaming Console
13.6.3 Smart Phones
13.6.4 Others
13.7 Historic and Forecast Market Size by Country
13.7.1 Turkey
13.7.2 Saudi Arabia
13.7.3 Iran
13.7.4 UAE
13.7.5 Africa
13.7.6 Rest of MEA
Chapter 14: South America Online Micro Transaction Market Analysis, Insights and Forecast, 2017-2032
14.1 Key Market Trends, Growth Factors and Opportunities
14.2 Impact of Covid-19
14.3 Key Players
14.4 Key Market Trends, Growth Factors and Opportunities
14.4 Historic and Forecasted Market Size By Payment Model
14.4.1 Prepay
14.4.2 Post-Pay
14.4.3 Pay-As-You-Go
14.5 Historic and Forecasted Market Size By Type
14.5.1 Random Chance Purchases
14.5.2 In-Game Currencies
14.5.3 Expiration
14.5.4 In-Game Items
14.5.5 Others
14.6 Historic and Forecasted Market Size By Device
14.6.1 PC
14.6.2 Gaming Console
14.6.3 Smart Phones
14.6.4 Others
14.7 Historic and Forecast Market Size by Country
14.7.1 Brazil
14.7.2 Argentina
14.7.3 Rest of SA
Chapter 15 Investment Analysis
Chapter 16 Analyst Viewpoint and Conclusion
Online Micro Transaction Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 73.69 Bn. |
Forecast Period 2023-32 CAGR: |
12.5% |
Market Size in 2032: |
USD 212.71 Bn. |
Segments Covered: |
By Type |
|
|
By Device |
|
||
By Payment Model |
|
||
By Region |
|
||
Key Market Drivers: |
|
||
Key Market Restraints: |
|
||
Key Opportunities: |
|
||
Companies Covered in the report: |
|
Frequently Asked Questions :
The forecast period in the Online Micro Transaction Market research report is 2024-2032
Activision Blizzard Inc., Tencent Holdings Ltd., NCSoft, Riot Games Inc., Nexon Co. Ltd., SmileGate (CrossFire), Wargaming.net, NetEase Inc., Valve Corporation, and Other Major Players.
Online Micro Transaction Market is segmented into Type, Device, Payment Model and region. By Type, the market is categorized into In-game Currencies, Random Chance Purchases, In-game Items, Expiration, Others. By Device, the market is categorized into PC, Gaming Console, Smart Phones, Others. By Payment Model, the market is categorized into Prepay, Post-Pay, Pay-As-You-Go. By region, it is analysed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
A micro Transaction is a business concept in which users can pay small amounts of money for virtual things. Micro Transactions are common in free-to-play games, which means there is no charge to download the game, only to purchase virtual goods online.
The Online Micro Transaction Market size was valued at USD 73.69 Billion in 2023 and is projected to reach USD 212.71 Billion by 2032, registering a CAGR of 12.5% from 2023 to 2032.