Social Network Game Development in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD4564Revenue
$6.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
10,499
Businesses
2,728
Wages
$X.Xbn
Social Network Game Development in the US industry analysis
Since their inception, social network game developers have grown rapidly. Revenue grew at a CAGR of 6.5% to an estimated $6.1 billion over the past five years. The surging adoption of the internet and the popularity of social networks, including social networking websites and mobile apps, have driven revenue growth during the period. However, profit has exhibited extreme fluctuations due to the large number of small start-ups with external funding. Nonetheless, alongside rapid increases in demand, profit also grew over the past five years.Operators' growth has been stimulated by the emergence of new markets that have embraced social gaming. Consumers who have not previously played video games are beginning to participate at accelerating rates. Women of all ages represent a growing segment of users due to the inclusion of social network games on mobile platforms, making it more accessible and reaching a wider audience. This trend will continue to benefit revenue in coming years, as game developers continue to target this market segment with more games aimed at women. Additionally, social gathering restrictions and stay-at-home orders amid COVID-19 significantly increased player engagement from existing and new users. Demand will continue growing throughout 2023, accelerating following a period of inflationary pressures which ate away at consumers' disposable income. These positive trends are expected to cause revenue to grow 8.4% in 2023 alone.Moving forward, operators will continue to enjoy strong growth. However, social networks are beginning to charge more for virtual currency transactions, which will challenge operators moving forward. The social networks that host games are seeking to generate more revenue themselves by taking advantage of the increased interest in social gaming. Nonetheless, beneficial trends will sustain growth, albeit at a slower overall rate than during the previous period. The surge in both smartphone popularity and internet connections will continue, linking more people to social games and networks. Disposable income is also set to rise and result in more virtual currency purchases. Over the next five years, revenue is expected to rise at a CAGR of 5.9% to an estimated $8.1 billion.
Trends and Insights
- Continued acceleration of smartphone usage enlarged social network’s customer base. As more customers adopted smartphones, it enables social networks like Facebook to expand their outreach and push for mobile game development connected to users’ accounts.
- Popularity of collaborative gaming enhances puzzle games’ appeal. Since consumers primarily play puzzle games as fun challenges among family members, it enhances demand for this gaming genre.
- Robust software company presence bolsters establishment growth. Regions that house a significant chunk of the technological sector have higher appeal for operators, as they have access to resources and staff.
- Creating secure and high-quality games affects internal competition. Operators that are able to offer a better, more immersive gaming experience can establish a competitive edge ahead of their peers.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 6.5 % over the past five years, to reach an estimated $6.1bn in 2023.
Trends and Insights
Robust acceleration of technology bolsters demand for social network games
- A crucial development in recent years has been the continued adoption of social media networks via smartphones and the broader growth in digital proliferation.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Strong economic growth will bolster operators' core revenue channels
- With the economy recovering following COVID-19 and the expected growth in disposable income over the next five years, operators will benefit from renewed interest among customers looking to invest time and money in social network games.
Biggest companies in the Social Network Game Development in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
King Digital Entertainment Plc | 1,526.0 | 593.8 | 38.9 | |
Zynga Inc. | 1,014.2 | 195.8 | 19.3 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Social Network Game Development in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Puzzle games, Gambling games and Role-playing games. Puzzle games is the largest segment of the Social Network Game Development in the US.
Trends and Insights
Reopening of the economy dampened user participation in puzzle games
- This product segment generates revenue from puzzle games.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Video Games in the US
Complementors
- Software Publishing in the US
- E-Commerce & Online Auctions in the US
- Internet Publishing and Broadcasting in the US
International industries
- Software Publishing in Canada
- Software Publishing in Australia
- Software Publishing in the UK
- Software Publishing in Ireland
- Software Development in Ireland
Table of Contents
About this industry
Industry definition
Companies in this industry develop video games played on a social network platform, including websites such as Facebook and smartphone applications. The games developed within this industry are free to play and do not require the user to own any software or console to participate. Companies earn revenue through the sale of virtual goods within a game as well as through advertisements. The Social Network Game Development industry is a fairly new research area that was established in 2005.
What's included in this industry?
Puzzle gamesGambling gamesRole-playing gamesStrategy gamesSimulation, lifestyle and arcade gamesCompanies
King Digital Entertainment PlcZynga Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
SMARTPHONESSTARTUPSRESEARCH AND DEVELOPMENT (R&D)ROLE-PLAYING GAME (RPG)INTELLECTUAL PROPERTYGAMERMAUSOCIAL NETWORKIndustry Code
NAICS 51121 - Social Network Game Development in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Continued acceleration of smartphone usage enlarged social network’s customer base. As more customers adopted smartphones, it enables social networks like Facebook to expand ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Popularity of collaborative gaming enhances puzzle games’ appeal. Since consumers primarily play puzzle games as fun challenges among family members, it enhances demand for t...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Robust software company presence bolsters establishment growth. Regions that house a significant chunk of the technological sector have higher appeal for operators, as they h...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Creating secure and high-quality games affects internal competition. Operators that are able to offer a better, more immersive gaming experience can establish a competitive e...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No major companies operate within the social network game development industry. The expansion of acquisitions by larger social media companies, such as Facebook and Amazon, c...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of King Digital Entertainment Plc's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Zynga Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for King Digital Entertainment Plc, and factors influencing its performance in the industry
- Description and key data for Zynga Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Strong growth in internet traffic volume benefits operators. As more consumers use the internet at a more frequent pace, it will benefit operator demand and expand the broade...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Robust customer usage bolsters profit. As more users join social media platforms and purchase in-game currencies, operators will benefit from a diversified revenue stream and...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Social Network Game Development in the US industry in United States in 2024?
The market size of the Social Network Game Development in the US industry in United States is $6.1bn in 2024.
How many businesses are there in the Social Network Game Development in the US industry in 2023?
There are 2,728 businesses in the Social Network Game Development in the US industry in United States, which has grown at a CAGR of 3.6 % between 2018 and 2023.
Has the Social Network Game Development in the US industry in United States grown or declined over the past 5 years?
The market size of the Social Network Game Development in the US industry in United States has been growing at a CAGR of 6.5 % between 2018 and 2023.
What is the forecast growth of the Social Network Game Development in the US industry in United States over the next 5 years?
Over the next five years, the Social Network Game Development in the US industry in United States is expected to grow.
What are the biggest companies in the Social Network Game Development in the US market in United States?
The biggest companies operating in the Social Network Game Development market in United States are King Digital Entertainment Plc and Zynga Inc.
What does the Social Network Game Development in the US in United States include?
Puzzle games and Gambling games are part of the Social Network Game Development in the US industry.
Which companies have the highest market share in the Social Network Game Development in the US in United States?
The company holding the most market share in United States is King Digital Entertainment Plc.
How competitive is the Social Network Game Development in the US industry in United States?
The level of competition is high and increasing in the Social Network Game Development in the US industry in United States.
