GAMIFICATION MARKET ANALYSIS

Gamification is the process of adding game-like mechanics in different environments such as company websites, businesses, workplaces, online communities, and others.  The main objective of the gamification software is to engage employees, customers, players, and partners thereby encourage them to work towards their goals. This software helps to create community entertainment, interaction, and a team-building environment. This software helps organizations to create interactive and task-based activities in order to encourage employees to achieve their target goals. The gaming-based solution is also helpful in providing training to the employees and for the recruitment process. Moreover, through this solution, customers can get information about the product and brand, which helps the companies to maintain sustainable relationship with customers. For instance, Service Corporation International, a U.S.-based company that provides funeral goods and services, registered an 89% boost in its closing deal after adopting gamification software. These factors are expected to drive the market growth during the forecast period.

The global gamification market is expected to witness significant growth during the forecast period (2020–2027), owing to the adoption of augmented reality, virtual reality, and mixed reality technologies. Companies are also investing in immersive technologies such as AR, VR and MR. Companies are also focusing on providing gaming solutions that leverage these advanced technologies. For instance, major players in the retail industry such as Amazon.com Inc. and Walmart are leveraging AR and VR technologies to revolutionize the online shopping experience. These companies are using immersive technologies to showcase their products by using virtual reality showrooms. Walmart is using augment reality gamification technologies for promoting its products. For instance, in May 2017, Walmart announced a partnership with Strivr Labs Inc. to provide training to its employees using virtual reality technology. This virtual training is provided to all employees across 200 centers in the U.S. to teach them about valuable customer service. Retailers are also using this technology for customer engagement inside and outside the retailer stores. Furthermore, in September 2018, Tyson Foods, Inc. announced a collaboration with Strivr Labs, Inc. to provide safety and hazard awareness training to the employees by using VR technology. The company is using VR technology in its training sessions. This training has reduced injuries and illness by 20% in 2017 as compared to the previous training. Thus, immersive technology along with gamification has revolutionized employee training to a large extent.

Moreover, multiple industries are using immersive technologies such as AR, VR, and MR to provide safety training, e-learning, performance management, and others. For instance, in April 2019, Exxon Mobil Corporation, a U.S.-based oil & gas multinational company, leveraged virtual reality technology to provide safety training to employees. Furthermore, complexity in designing gamification software is expected to hamper the gamification market growth. It was observed that designers failed in developing unique and advanced designs to meet organization needs. This might slower the adoption of these solutions in the market. Thus, accurate constructed design with proper implementation is mandatory to achieve desirable outcomes. These factors are expected to hamper the market growth during the forecast period.

Global Gamification Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 pandemic is expected to drive growth of the market during the forecast period. Due to the Covid-19 pandemic, many industries have witnessed a significant positive shift in their businesses. Due to this pandemic, organizations are focusing on motivating their employees to complete their assigned tasks. The gamification software assists companies to encourage their employees. This software is also helpful to create an organized environment for their employees and support them to achieve their targets. Companies are more focused on their service offerings and interactive qualities. The brands are adopting these solutions in order to retain their customers. Players such as Myntra and Nike, Inc. are providing community engagement through gamification software to retain existing customers. During this pandemic, gamification solutions are used to create awareness regarding social distancing and engage them in community activities from their locations. This increases demand for gamification and in turn, is expected to drive the market growth in the near future.

North America is expected to hold dominant position in the global gamification market during the forecast period

Statistics:

North America held dominant position in the global gamification market in 2019, accounting for 44.2% share in terms of value, followed by Asia Pacific and Europe.

Figure 1: Global Gamification Market Share (%), By Region, 2019

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North America is expected to account for the largest market share during the forecast period, owing to the presence of customer centric players in the region such as Oracle, Cisco System, Inc., Salesforce, Inc., and others. For instance, in June 2018, Oracle launched Oracle Launchpad, a digital learning platform to help cloud customers. The new learning platform enable customers to search and learn topic based on their schedule. The increasing demand for customized solutions across large enterprises is expected to boost the market growth. Emerging companies in countries such as the U.S. and Canada are adopting online gaming solutions to increase the productivity and company growth.

Asia Pacific region is expected to exhibit highest growth during the forecast period, owing to the rising number of SMEs in the region. SMEs are offering reward points and membership cards to their customers, which extends loyalty towards organizations. The governments are also encouraging small and medium enterprise startups and innovation in the region. Moreover, increasing smartphone penetration and internet traffic across e-commerce industry are also expected to drive the market growth during the forecast period. According to Coherent Market Insights’ analysis, in China, the penetration of smartphones increased from 41.3% of population in 2016 to 61.2% of population in 2020.

IT and telecom segment is expected to drive the market growth during the forecast period

Among industry, the IT and telecom segment is expected to hold dominant position in the global gamification market during the forecast period. The growing IT and telecom industry is creating lots of hiring opportunities for the companies. The number of applicants in IT and telecom industry is very high and companies are integrating their recruitment process with gamification to make process simpler and interactive. Moreover, companies are also providing interactive training sessions to their employees. For instance, in April 2019, Infosys launched Infosys Wingspan, a next generation learning platform, to help employees to increase their knowledge skills, customize their goals, and measure their progress.

Figure 2: Global Gamification Market Value (US$ Bn) Analysis and Forecast, 2017 - 2027

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The global gamification market was valued at US$ 7.6 Bn in 2019 and is expected to reach US$ 38.3 Bn by 2027 at a CAGR of 24.9% between 2020 and 2027.

Major players operating in the global gamification market include Cisco Systems, Inc., Microsoft, SAP, Facebook, Inc., BI WORLDWIDE, Verint, Risk Management Solutions, Inc., hoopla, Mambo Solutions Ltd., Centrical, LevelEleven, MPS Interactive Systems Limited, Influitive, Launchfire Interactive Inc., 2020 Gamifier, Inc., Actionable, Xoxoday, NIIT, Cognizant, Tango Card. Inc., and Khoros, LLC.