Valued at $32.29 billion in January 2017, a new report by market intelligence firm BIS Research calculates that the mobile gaming market will reach a value of $58.71 billion worldwide by 2023.

BIS calculates the industry will grow at a mean annual growth rate of 9.4% between 2017 to 2023. The firm attributes the growth to a number of factors, both on the consumer side and the developer side. The increasing proliferation of inexpensive smartphones, improved internet accessibility around the world, and the availability of numerous games in a diverse range of genres have created the growing demand for interactive entertainment. On the other side of the coin, low capital requirements have led to an influx of mobile game developers eager to tap into and feed consumer demand, resulting in an abundance of mobile games across iOS and Android platforms. In terms of monetization, the wide reach of the mobile games consumer base has made possible the creation of an array of revenue streams and integrated payment solutions that make mobile game development attractive to companies. These monetization options include subscription fees, pay-per-play, and in-app purchases royalties as well as premium account and upgrade remunerations.

In terms of future growth, BIS expects the provision of secure payment gateways, improving internet accessibility across the globe, and the availability of a diverse range of gaming options to continue to drive industry growth. The firm also expects that the rise of augmented and virtual reality will provide developers with new monetization opportunities as they create new mobile gaming content incorporating the new technologies. However, BIS also expects that as competition in the market intensifies, it will become increasingly difficult for developers to generate brand loyalty and create a revenue generating consumer base.

According to Rachit Jain, an analyst at BIS Research, the “Asia-Pacific mobile gaming market is expected to witness the fastest growth throughout the forecast period. Improving internet connections and availability of low cost smartphones will be the primary growth drivers in the region. For instance, the Indian mobile gaming market is poised to grow with the faster CAGR of 28% in coming 5 years. The rising level of income of middle-class population and search for alternative modes of recreation by the growing youth population of the two of the largest developing nations, India and China, will further escalate the growth of mobile gaming market.”

In terms of genre, BIS reports that strategy and puzzle games had the largest share in 2016 and expects those games to enjoy a strong growth rate during the forecast period. According to the firm, games such as Clash of Clans, Game of War: Fire Age and Puzzles and Dragons were the top grossing games in most countries, contributing to the success of those genres.