43% of Active Smartphones Will Be 5G-Ready by 2023: The Global Mobile Market Is on Track for Substantial Growth and Game-Related Engagement

We’re over the moon to announce that we’ve just launched 2020’s Global Mobile Market Report! We always play to our strengths at Newzoo. As more and more mobile titles take cues from the console and PC space, our unmatched expertise really shines in this year’s report.

The number of smartphone users will exceed 4 billion by 2023 and mobile game revenues will finally cross the $100-billion mark, so there’s a lot to be excited about.

As always, we’ve put together some free high-level insights from the main report. Keep reading this article for insights and data on:

• The number of active smartphone users across the globe—this year and beyond
• The number of mobile gamers and mobile game revenues
• The growth trajectory of 5G-ready phones
• Exciting trends to watch in the space
• And more!

As one of the most exciting developments in the mobile space across the globe, 5G is expected to be an adoption driver for cloud gaming. With this in mind, we developed a new forecasting model for 5G-ready smartphones for this year’s Global Mobile Market Report that estimates the total number and share of 5G-ready phones among all active smartphones on a country level. As always, we focus on the smartphone market in terms of active use rather than units shipped.

Our 5G-ready smartphone forecasting model is the first of its kind in the market that estimates 5G-ready phones based on monthly active use. Although in its infancy, 5G is currently enticing early adopters and smartphone aficionados. It will likely take at least another four years for the technology to hit the mainstream, when more than 50% of all active smartphones will be 5G-ready.

The Mobile Market’s Unstoppable Growth Continues: 4.1 Billion Smartphone Users by 2023

The year 2020 marks a milestone year for the general mobile market, as the number of active smartphone users will reach 3.5 billion—or, around 45% of the entire global population.

The Chinese mobile market remains the largest mobile ecosystem (by absolute user numbers). China will account for over a quarter of the global number of smartphone users in 2020.

The number of smartphone users worldwide will skyrocket further, totaling 4.1 billion by 2023. Growth regions like Central-Southern Asia, Sub-Saharan Africa, Southeast Asia, and Latin America will steer much of this growth—a direct result of increasing smartphone penetration and improving (mobile) internet infrastructure in these areas.

Increased Smartphone Penetration and a Growing Mobile Market Means More Player Engagement

The majority of mobile users play games. In fact, there will be 2.5 billion mobile gamers by the end of 2020. This number will also spike towards 2023—again, driven by growth markets, their improved (mobile) internet infrastructure, more affordable (smart)phones across all specs, and their growing middle classes.

As always, engagement trickles into revenues—even in the mobile-gaming space (where it’s tougher to turn general players into payers). In 2020, global mobile game revenues will grow to $77.2 billion with year-on-year growth of +13.3%. More than half of these revenues will come from iOS.

And even more growth is coming, with mobile game revenues set to cross the $100-billion line in 2023. By then, emerging technologies like 5G and cloud gaming will disrupt the ways many consumers play on mobile.

5G Has Had Some Complications, But Astronomical Growth Is Coming

Last year catalyzed the market’s transition toward the fifth generation of mobile network technology. Markets across the world rolled out 5G networks, and many of the world’s leading smartphone manufacturers launched their first flagship 5G smartphones.

For 2020 and 2021, complications from COVID-19 challenged 5G’s mass deployment, which may have some impact on the years afterward. Meanwhile, political tensions also contribute to the technology’s slower-than-anticipated uptake. But the 5G revolution is still coming.

Just under 200 million active smartphones will be 5G-ready by the year’s end, accounting for just 5% of the global number. In the full report, we forecast the number of 5G-ready smartphones up until 2023, when 43% of all active smartphones will be compatible with the tech.

The burgeoning 5G market has major implications for cloud gaming. One of our trends in the full report explores how cloud gaming is building companies’ and consumers’ appetites for mobile-focused controllers. Get a sneak peek in the free report.

Samsung is currently leading the charge on the cloud gaming front, having partnered with Microsoft on a Galaxy Note 20 offering a three-month Xbox Game Pass Ultimate subscription. Speaking of Samsung, the company remains the #1 smartphone manufacturer (by active devices), but Chinese brands may be catching up.

The insights covered in this article are just the beginning. The mobile market is at a pivotal point of change, with the 5G revolution incoming, ad-revenues for mobile (game) apps being in flux with the potential impact of iOS 14, and cloud gaming shifting the ways some of us play. Want to stay on top of all these exciting changes?

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