The Evolution of Gaming with a focus on Turkey
The gaming industry has been seeing growth over the past couple of years, how did growth in the industry evolve and which geographies saw elevated interest?
The gaming industry has witnessed an unprecedented surge in recent years, emerging as a dominant force within the global startup ecosystem. This phenomenon extended to the MEAPT region, where a vibrant and rapidly expanding gaming landscape has taken root. The region's diverse and youthful population, coupled with increasing digital connectivity and technological advancements, has fueled the growth of gaming startups and transformed the industry. The gaming industry benefited from the pivotal role the startup ecosystem plays in fostering the growth of the gaming industry. Startups brought agility, innovation, and fresh perspectives to the table, challenging the status quo and driving industry advancements.
Breaking down the MEAPT, countries in the MENA region like the United Arab Emirates, Saudi Arabia, and Egypt have embraced the gaming industry as a catalyst for innovation. With a rising number of game development studios, the MENA region saw its best year yet for the gaming industry in 2022, with funding at $25M across 12 deals.
Across Africa, gaming startups have been leveraging the power of mobile technology and the growing accessibility of smartphones to tap into a massive untapped market. The continent's youthful population, estimated by the World Economic Forum to reach 42% of the global youth by 2023, presents a tremendous opportunity for gaming entrepreneurs. From Nigeria's burgeoning game development community to South Africa's emerging esports scene, African startups are redefining gaming narratives and forging a unique identity within the global gaming ecosystem. This being said, the gaming industry in Africa peaked in 2022 with funding at $57M, nearly 6x its level in 2021. Earlier this year, South Africa’s Carry1st closed a Pre-Series “B” $27M deal which came amongst Africa’s top ten highest funded deals so far this year.
Meanwhile, Turkey has established itself as a hotbed for gaming innovation, bridging the gap between Europe and the Middle East. The country boasts a dynamic startup ecosystem with a strong emphasis on technology and digital entrepreneurship. Turkish gaming startups have gained international recognition, propelled by a vibrant local market, government support, and a talented pool of developers, designers, and creative professionals. In 2021 and 2022, the gaming industry in the country crossed the $300M mark growing from as low as $22M in 2020. In detail, 2021 saw funding at $348M across 51 deals, while the number of deals dropped to nearly half its value at 27 deals in 2022 with funding up to $382M. This year has seen 12 deals to date, 11% of the total deals closed so far for the country. In funding, capital deployed in gaming amounted to $16M, capturing 14% of the country’s total funding for 2023 YTD.
At the level of players, Turkey’s Dream Games, founded in 2018, was a strong player in the country’s ecosystem reporting a $155M deal closed in June 2021 and another MEGA deal of $255M in January 2022, both of which saw the interest of international investors with cross border investments the likes of US-based Institutional Venture Partners, Kora and Balderton Capital, UK’s Index Ventures and Singapore’s Makers Fund. Loop Games was another player receiving above $50M in a round size of $60M closed in February 2021 and backed by US-based investor Tilting Point. This merely highlights the international investor interest in the Gaming industry in the country.
In conclusion, the gaming industry in the MEAPT region has experienced remarkable growth over the past two years, driven by the dynamic startup ecosystems in the Middle East, Africa, and Turkey. These regions have capitalized on their unique strengths, including their diverse populations, digital connectivity, and technological advancements, to fuel the expansion of gaming startups. The startup ecosystem has played a crucial role in fostering the growth of the gaming industry by bringing innovation, fresh perspectives, and access to funding. In countries like the United Arab Emirates, Saudi Arabia, Egypt, Nigeria, South Africa, and Turkey, gaming startups have thrived, attracting significant investments and international recognition. While challenges exist, such as funding limitations amidst the ongoing challenging environment and regulatory complexities, the industry has witnessed a growing interest in both 2021 and 2022.
Learn more about Our Data Methodology
Get full insight into this startup scene. Access real-time data on startups in MEAPT