Online Microtransaction Market Size, Share and Trends 2024 to 2034

Online Microtransaction Market Size and Forecast 2024 to 2034

The global online microtransaction market size is calculated at USD 57.89 billion in 2024 and is predicted to reach around USD 115.06 billion by 2034, expanding at a CAGR of 7.11% from 2024 to 2034. The rise in the gaming industry and esports culture in the young population around the world is driving the growth of the online microtransaction market.

Online Microtransaction Market Key Takeaways

• North America dominated the global market with the largest market share of 38% in 2023.
• Europe will witness significant growth during the forecast period.
• By transaction type, the in-app purchase segment contributed the highest market share in 2023.
• By transaction type, the DLC segment is anticipated to grow at the fastest CAGR during the forecast period.
• By platform, the mobile platform segment led the market in 2023.
• By platform, the PC segment is expected to grow at the fastest CAGR during the forecast period.
• By user demographics, the adult segment accounted for the highest market share in 2023.
• By user demographics, the teens segment is anticipated to grow with the highest CAGR from 2024 to 2034.
• By content type, the gaming segment generated the major market share in 2023.
• By content type, the social media segment is projected to grow at the fastest CAGR during the forecast period.

How Can Artificial Intelligence (AI) Impact the Online Microtransaction Market?

The integration of artificial intelligence into the online microtransaction market is revolutionizing the entire process and operations. The implementation of AI into microtransactions for smoother transactions and personalized deals as per the requirement of the consumers emerging as the potential opportunity for the growth of microtransactions across a wide range of industries.

• In September 2024, Gaxos.AI, was launched by a Roseland New Jersey-based Gaxos to increase revenue, elevate player creativity, and enhance development through its Unity plugin and proprietary generative AI asset editor.

U.S. Online Microtransaction Market Size and Growth 2024 to 2034

The U.S. online microtransaction market size is exhibited at USD 15.40 billion in 2024 and is projected to be worth around USD 31.23 billion by 2034, growing at a CAGR of 7.30% from 2024 to 2034.

North America dominated the online microtransaction market in 2023. The growth of the market is attributed to the rising availability of the leading technology leaders and the rare acceptance of technologies in every field is driving the growth of the market. There is an increase in technological advancement in regional countries such as the United States, and Canada with robust telecommunication services, and the rise in application development including media and entertainment, gaming, financial services, social networking, and others.

• The U.S. video gaming industry contributed nearly USD 66 billion to the U.S. GDP and created and supported about 350,000 total jobs. The United States is one of the significant players in the video game industry. There are about 190 million Americans play video games and about 78% of the household population had at least one gaming device last year.
• The mobile game industry accounted for about 49% of the global market followed by console games with 28% and 23% of PC games.
• The global value of the video game industry was USD 184 billion with 3.2 billion gamers worldwide in 2023. In which 95% of the games were purchased digitally, and the remaining 5% were purchased physically.

Europe will witness significant growth in the online microtransaction market during the forecast period. The region is considered one of the leading contributors in the expansion of the market owing to the higher consumer base for the different types of digital content including gaming, online videos, web series, social media, and others which causes the higher demand for the paid subscription, or membership model of the application for better version, features, and services.

• The video gaming industry is a significant contributor to the economic sector of European countries. The EU27 video games market accounted to generate € 23.48 billion in revenue in 2022.
• The video game industry is supported by the employment of 74000 people across the 5,000 game development and publishing studios.

Market Overview

Online microtransactions are the payment process that is done virtually within the digital or online application by using real money. Microtransactions are one of the most important parts of the type of digital or gaming platform that generates revenue for companies. Microtransaction provides elevated and premium content to the customers. It plays an important role in the gaming industry, it further includes transactions such as loot boxes, character customization, and in-app currencies.

Online Microtransaction Growth Factors

• Robust internet penetration: The strong presence of telecommunication companies and the increasing penetration of the Internet and digital content by the population is driving the demand for a wide range of applications including media and entertainment, social media, gaming, financial services, and others that boosts the growth of the market.
• Rising inclination towards the in-purchase application: The wider adaptation of mobile gaming and other applications which boost the demand for the additional specification and features in the existing gaming applications are driving the growth of the market.
• Rise in the subscription model: The rising inclination of applications towards the subscription model for offering additional features in the applications with enhanced content and premium services.

Market Scope

Market Dynamics

Driver

Increasing online gaming industry

The rise in the gaming industry and the adoption of the career professional by a number of people is driving the growth in the online microtransaction market. Microtransaction plays an important role in the gaming industry in terms of generating significant revenue for companies. The integration of microtransactions in the gaming industry is a game changer in terms of revenue generation and providing profit to gaming companies. It significantly helps in changing the landscape provides flexibility and enhances the experience of gamers by the addition of new features and interaction values.

Restraint

Risks associated with online payments

There are significant risks associated with the online payment process such as the risk of fraud, internet dependencies, cyber threats, technical issues, and others that are limiting the growth of the online microtransaction market.

Opportunity

Implementation by the leading digital platform

The continuous growth in digital platforms and applications such as social networking, gaming, financial services, social media, and service-based applications highly adopt the microtransaction features for internally upgrading the content and features of the application which helps in elevating the experience of the consumers. The ongoing investment by the leading players in the advancement and launch of digital applications is emerging as a potential opportunity for the online microtransaction market.

Transaction Type Insights 

The in-app purchase segment dominated the online microtransaction market in 2023. In-app purchases are one of the important parts of the apps that help the app publishers monetize their apps. It is simply known as the additional app fee which is taken by the publishers to buy the additional features like services, and content, inside the apps. There are different types of in-app purchases including in the different types of apps such as auto-renewable subscriptions, non-renewable subscriptions, consumables, and non-consumables. Rising penetration of internet users and digitization are positively impacting the development of mobile applications and the wider adoption of in-app purchases by applications such as dating apps, social networking, gaming, entertainment, and others are driving the demand for the segment.

The DLC segment will witness significant growth in the online microtransaction market during the forecast period. The DLC is also known as downloadable content, the term refers to the release of additional content for the games or the site that is already live on the internet such as some digital games which is already available on the digital platform and DLC allows download the additional content to that video after the initial release.

Platform Insights

The mobile platform segment led the online microtransaction market in 2023. The rising penetration of the mobile phone and the increase in digitization across the world are driving the development of mobile applications. The growing global population and the demand for digital platforms boost the development of industries like media and entertainment, gaming, e-commerce, and others which causes an increased number of mobile applications for the different needs and requirements of users. Mobile applications are one of the leading contributors to the online microtransaction market with the highest revenue owing to the increased number of users.

The PC segment will experience significant growth in the online microtransaction market during the forecast period. PCs are one of the leading contributors in the online microtransaction market owing to the increasing number of app installations in the PC such as online streaming channels, gaming platforms, and others which boosts the revenue of online microtransaction through the PC segment.

User Demographics Insights

The adult segment accounted for the highest share of the online microtransaction market in 2023. Adults are the largest number of internet users in a wide range of applications including social networking, media and entertainment, gaming, financial service applications, and others. There is an increase in digitization and the robust telecommunication industry with faster internet services are driving the demand for application development and the increasing demand for additional or premium sets of services by adult consumers.

The teens segment is anticipated to witness significant growth in the online microtransaction market during the anticipated period. Teens or the younger generation are highly influenced by digitization and internet services. These are some of the largest consumers of the different applications and subscription members due to the demand for the additional features, and services. There is a rise in the implementation of the gaming, social media, and gaming industry.

Content Type Insights

The gaming segment held a significant share of the online microtransaction market in 2023. The gaming is fastest growing application among consumers, with the highest number of installations of gaming apps in the younger generation, and the inclination towards gaming as a career profession is highly contributing to the online microtransactions market via gaming platforms. There is an increase in demand for additional gaming content for the existing one and the demand for the membership to access the additional features and services.

The social media segment is expecting substantial growth in the online microtransaction market during the predicted period. The rising global population, availability of robust telecommunication services, digitization, and continuously growing internet penetration are driving the growth of social media channels or platforms. There is an increase in demand for additional features on the social media platform such as stickers, digital goods, and other features that help elevate the user experience.

Online Microtransaction Market Companies

• Microsoft
• Sony
• Apple
• Google
• Activision Blizzard
• Epic Games
• Tencent
• Nexon
• Zynga
• Supercell
• Roblox Corporation
• Unity Technologies
• Valve
• Electronic Arts
• Amazon

Latest Announcement by the Industry Leaders

• In December 2024, Amazon launched the latest Nova Foundation Model which is the comprehensive artificial intelligence (AI) strategy, the latest launch is developed to push the advancement of AI more cost-effective and accessible for the organization via Amazon Bedrock.
• In January 2024, Apple announced a to shift Safari, iOS, and the App Store impacting the European Union’s developers to comply with the Digital Markets Act (DMA). The shift further includes the 600 latest APIs, features for alternative browsers, increased app analytics, distribution of iOS, and payment processing options.

Recent Developments

• In February 2024, Tekken 8, an online game planning to introduce microtransactions with the new Tekken Shop, the microtransaction is taken to enhance the visual representation.
• In November 2024, Facebook and Instagram are offering lower price subscriptions for no ads and offer a new choice of features with less personalized advertisements for the people of Europe.
• In October 2024, CNN, a leading and the most popular news website globally started a paywall to its visitors worth $3.99 a month for accessibility to their news and world-class articles.
• In September 2024, Alshaya Group, Ooredoo Kuwait an international retail franchise operator launched the Aura Mobile Powered by Ooredoo for Kuwait’s customers to provide exceptional services with loyalty and exclusive benefits across 50+ Alshaya brands.

Segments Covered in the Report

By Transaction Type

• In-App Purchases
• DLC (Downloadable Content)
• Virtual Currency
• Subscriptions

By Platform

• Mobile
• PC
• Console
• Web

By User Demographics

• Adults
• Teens
• Children

By Content Type

• Gaming
• Social Media
• Streaming Services

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa