Market Opportunity
The project’s target market is young gamers, between the ages of 15-30 years, with internet-connected smartphones living in the Middle East and Africa; within the target market area, there are more than 30 countries with a total population of 1.3 billion people in 2022. When we zoom in to the target region, we estimate the market size for the number of potential users to be about 400 million in 2022.
An important fact is to consider the population growth rates in the target market, more than 25% of the population of the MEAF is under the age of 15, representing over 400 million young people, this is the largest number of young people to transition to adulthood in the region’s history. Young people are the fastest-growing segment; about 60% of the population is under 25 years old, making this one of the most youthful regions in the world, with a median age of 22 years compared to a global average of 28.
The project business model intersects three industries, Loyalty, Gaming, and Crypto. To determine the market size and the opportunity revenue potential, we have completed a market analysis for the three industries.
Gaming: The gaming industry, the largest of the three industries, in 2022 worldwide market size in terms of the number of users is estimated to be about 3 billion users, and in terms of revenue, it’s estimated to be at 180 billion USD annually. The projected compound annual growth rate (CAGR) is 5%, which means that by 2027 the number of users worldwide is projected to be about 4 billion users. In terms of revenue, it’s projected to be about 240 billion USD annually.
ARPU
The worldwide annual average revenue per user (ARPU) for the gaming industry in 2022 is estimated at 60 USD; by 2027 it is projected to remain the same. For the target market, in 2022, the annual ARPU is estimated to be about 9 USD, and by 2027 it’s projected to be around 10 USD.
Loyalty: The loyalty industry, the second largest of the three industries, in 2022 worldwide market size in terms of the number of users is estimated to be about 2.4 billion users, and in terms of revenue, it’s estimated to be at 200 billion USD annually. The projected compound annual growth rate (CAGR) is 3%, which means that by 2027 the number of users worldwide is projected to be about 2.8 billion users. In terms of revenue, it’s projected to be about 238 billion USD annually.
ARPU
2022 worldwide annual ARPU for the loyalty industry is estimated to be about 83 USD; by 2027 it’s projected to be the same. For the target market, the 2022 ARPU is estimated at around 17 USD, and by 2027 it’s projected to be about 20 USD.
Crypto: The crypto industry is the smallest of the three industries but is the fastest-growing in 2022 worldwide market size in terms of the number of users is estimated to be about 400 million users, and in terms of revenue, it’s estimated to be at 120 billion USD annually. The projected compound annual growth rate (CAGR) is 9%, which means that by 2027 the number of users worldwide is projected to be about 830 million users. In terms of revenue, it’s projected to be about 200 billion USD annually.
ARPU
2022 worldwide annual ARPU for the crypto industry is estimated to be about 286 USD; by 2027 it’s projected to be at 240 USD. For the target market, the 2022 ARPU is estimated at around 60 USD, and by 2027 it’s projected to be about 50 USD. The decline in the annual APRU is expected because of the massive growth in the overall crypto market size.
To estimate the number of users and the revenue potential for the target market, and after analyzing the market data for the three industries that the business model intersects with; we estimated the serviceable obtainable market (SOM) size in 2022 to be around 400 million users with annual revenue potential of 6 billion USD.
Between 2022 and 2027, the market size will grow significantly due to 2 main factors, first, the population growth within the age segment for youth under 14 years old entering the target market; and second, the expected growth of the crypto industry in the region.
By 2027 the market SOM size is expected to be around 600 million users with an annual revenue potential of 12 billion USD. By 2027 we aim to attain at least 10% of the target market SOM, which comes up to more than 60 million users with an annual revenue potential of 1.2 billion USD at an average ARPU of 20 USD.
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