Gamification Market By Deployment Type (Cloud, On-Premise), By Enterprise Size (Small & Medium, Large), By Platform (Open, Closed/Enterprise), By End-Use Vertical (Retail, Banking, Government, Healthcare, Education & Research, IT & Telecom, Others) And By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027.

Gamification Market Definition and Estimation:

Gamification involves the use of game-design elements, such as missions, points, leader boards, etc., and/or principles in non-game contexts to achieve a certain objective. For instance, Nike developed the Nike Run club app that offers challenges and prizes with an underlying purpose to market the brand. Incorporation of gamification elements such as time-bound challenges, progress levels, awards, etc. boosted the sales for Nike shoes and resulted in the dominance of the company in the market. Gamification finds applications in various fields such as education, marketing, health, websites, etc.

The gamification market was valued at USD 8.14 billion in 2019 and projected to reach USD 34.29 billion by 2027; this converts into a compound annual growth rate (CAGR) of 19.7% during the forecast period.

Gamification Market overview:

Although gamification was developed several years ago, it has found itself assuming a vital role within organizations. Whether it is to improve employee engagement, productivity or performance, teaching skills or updating employees with the latest information, recruiting and more, companies turn to gamification to address these issues. The surge in technological innovation and adaptation of cloud-based gamification techniques will provide opportunities for the gamification market to flourish. The market is hence, expected to witness an upward slope during the forecast years.

The Gamification Market is Segmented to Include:

By Deployment type:

• Cloud
• On-premise

By Enterprise size:

• Small & medium enterprise
• Large enterprise

By Platform:

• Open Platform
• Closed/enterprise Platform

By End-use vertical:

• Retail
• Banking
• Government
• Healthcare
• Education & research
• IT & telecom
• Others

On the basis of deployment, the gamification market is led by the on-premise segment. It accounted for close to 70% of the market share in 2019. In terms of revenue, it garnered more than USD 5.5 billion. The widespread use of on-premise over cloud led to the segment’s dominance. Moreover, the on-premise segment is forecasted to expand at a CAGR of more than 25% from 2020 to 2027, due to a well-established network and preference among corporations.

The need to handle a huge employee base has generated the demand for gamification solutions among large-scaled organizations. Being one of the early adopters of these solutions, it is no surprise that the large-scale enterprise segment dominated the gamification market. The segment captured around 65% or approximately USD 5 billion of the market in 2019. Nevertheless, SMEs are exploring the use of these solutions for hiring and gaining in-depth insights regarding employees and applicants. As a result, the small & medium enterprise segment is estimated to witness a CAGR of nearly 30% during the forecast years.

Among the two types of platforms, the closed/enterprise segment accounted for more than USD 4.5 billion in revenue in 2019. The closed platform segment provides data security and minimizes the risk of data theft or system modification. As a result, the segment held nearly 60% of the gamification market. The open platform segment, on the other hand, is projected to register a faster growth rate of more than 28% during the forecast period. This growth rate can be attributed to the flexibility that open platforms provide.

The education sector is anticipated to generate a massive demand for gamification software or solutions in order to aid the learning and educating process. The education & research segment is, therefore, predicted to expand at a CAGR of around 30% between 2020 and 2027. However, other industrial vertical segment has secured approximately 20% of the gamification market i.e., around USD 1.5 billion in revenue, in 2019.

Gamification Market by Geography Overview:

Based on geography, the market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

North America has been at the forefront of the gamification market in 2019. The presence of customer-centric organizations such as Oracle, Cisco, Salesforce, etc. are investing in gamification solutions for marketing and customer engagement services. The increasing number of smartphone users has promoted the development of mobile-based gamification apps. Corporations are actively deploying these solutions to improve employee skills and establish a healthy work culture. As a result, there has been an increase in the number of start-ups providing these solutions. All of these factors are likely to positively influence the market growth in the region.

Asia – Pacific is anticipated to display the fastest growth rate during the forecast period. China is estimated to capture maximum market share. Rapid industrialization, increasing investments in technology, diversified gamification solution market and the rising proliferation of mobile devices will boost the market forward.

Several players along with governments in nations such as U.K. Germany, France, Spain, etc. are working towards raising awareness for gamification solutions. For example, the Europe gamification conference organized in December 2019, provided an in-depth understanding of the available tools and its solutions.

The gamification market in Latin America and Middle East & Africa is predicted to expand at a slower rate as compared to the other regions. Nevertheless, the growth can be attributed to the steady rise in the number of regional and local providers of the solution along with the support of various governments.

Gamification Market Dynamics:

Drivers:

1. Mobile-based gamification gaining momentum.

The rise in penetration of mobile devices, such as smartphones and tablets, coupled with the preference for smartphones over PCs or laptops have led to the development of mobile-based gamification solutions. Since individuals are more likely to check their mobile devices, the development of such solutions provides lucrative options for various industry verticals to capture consumer/employee interest with a higher chance of a conversion. The resulting demand for mobile-based gamification will, therefore, drive the market forward.

2. Crowd-sourcing seen as a major opportunity in innovation and development.

Sourcing first-hand data from the target audience, through social networking platforms, aids in the development of customer-centric products and services. Integration of gamification apps that encourage individuals to participate in surveys, competitions and permit sharing of information and experiences, also referred to as crowd-sourcing, will boost innovation among corporations, therefore, ensuing an improved market share.

Challenges:

1. Complexities involved in developing gamification application and its short-term applications.

Gamification apps use game elements that encourage users, in the form of competitions and through rewards, to perform tasks such as improving a skill through training, encouraging fitness, detecting potential incidents, and more. Mostly, these apps incentivize winning over other important objectives. For instance, during training, employees focus on acing a test to win prizes rather than learning and developing skills. Also, over the years, gamification apps are developed using a generic approach having a similar interface. Subsequently, users lose interest over a period of time. The complexity in developing a gamification app that maintains user interest and incentivizes the core objective over winning is a major challenge that the market needs to overcome in order to expand.

The gamification market is studied by analyzing all the key market participants across the ecosystem. The key players include, but not limited to:

• Faya Corporation
• MPS Limited
• Microsoft Corporation
• Callidus Software Inc. (SAP SE)
• cut-e GmbH (AON PLC)
• Axonify Inc.
• IActionable Inc.
• Verint System Inc.
• Ambition
• Gamifier Inc.
• Bunchball
• Centrical

Recent News and Developments in the Gamification market:

1. BI Worldwide collaborated with Vitality to improve overall employee health in January 2020. The collaboration integrates BI’s recognition system with Vitality’s One program that rewards employees for leading active and healthy lifestyles.
2. LevelEleven, a leading performance management software company, and Geopointe, a leading geolocation software, merged to form Ascent Cloud in February 2020. Ascent Cloud aims to integrate the premier products of the two companies to address the challenges that sales and customer-leaders face on a daily basis.
3. In November 2020, SAP SE launched the ‘SAP S/4HANA virtual board game. It is designed to assist enterprises examine business objectives in order to succeed.

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