According to the latest market research report from Technavio, iGaming is expected to record an impressive $260.44B gambling market surge between 2022 and 2027, with a compound annual growth rate of 7.1%.
One of the significant drivers of this growth will be the rapid increase in the demand for online gambling, especially in North America, which is forecasted to contribute 37% to global market development.
Digital Transformation Fueling Market Expansion
In the past, the availability of platforms for online games such as poker, bingo, and the lottery was limited, hindering their widespread adoption.
However, the rise in mobile application platforms and the increasing penetration of smartphones have facilitated the launch of web-based gambling games, driving demand for online gambling, particularly in North America.
This, in turn, is expected to catalyze the growth of the gambling market throughout the forecast period.
The competitive landscape of the gambling market is continually evolving. As the market expands, new players are expected to enter the scene, challenging existing vendors to maintain their market share.
Technological advancement and product pricing are anticipated to be significant differentiators in this increasingly crowded marketplace.
Challenges and Opportunities in the Gambling Sector
As betting on e-sports picks up pace, it’s expected to drive further growth in the gambling market.
The substantial prize money associated with e-sports attracts a large customer base, prompting gambling industry players to focus on e-sports games and develop new offerings.
However, the growth of the online gambling market is not without challenges.
Issues concerning security, credibility, and a lack of transparency in cash payouts can discourage new users from participating in online gambling.
To counter this, online operators must develop robust security frameworks, including cryptographic techniques and software protection.
$260.44B Gambling Market Surge: what it Means for the iGaming Industry
The projected growth of the gambling market has several implications for the iGaming industry:
- Technological Innovation: The rise of online platforms for gambling games demonstrates the industry’s need to continuously innovate to meet customer demands.
- Market Competition: The anticipated entry of new players into the market signifies increased competition and a need for differentiation among vendors.
- Cryptocurrency Integration: The trend of crypto-based gambling offers advantages like secure transactions and low fraud risks, indicating the potential for cryptocurrencies to revolutionize the iGaming industry.
With the expected growth, the introduction of new technology, and increasing competition, the gambling market is poised for a transformation that will redefine the future of the iGaming industry.