Holla, if you’re following myCred’s official blogs regularly, you must have read our previous article that was all about the history of gamification and its journey from 2700 BC to the present time. We will now talk about the future of Gamification and how it has evolved to a new level of approachability, functionality, and lifestyle integration.
What Is ‘New’ About Modern Gamification?
With time, modern “gamification” has evolved to a stage where it is now much easier to create an interactive online design that plays on people’s competitive instincts than a couple of years ago. The credit for this goes mainly to industries that have upped their game by changing user behavior through engagement.
Most companies incorporate the use of rewards to drive action—these include virtual rewards such as points, badges, ranks, and status indicators like a top fan, professional profile, leader boards, achievement data, progress bars, and the ability to “level up.”
Gamification’s Projected Market Size Value (2020 – 2025)
Experts have predicted that Gamification will make deeper inroads within important industries, like education, healthcare, recycling, financial services, eCommerce (Retail & Wholesale), etc. The gamification market size is projected to grow from USD 9.1 billion in 2020 to USD 30.7 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 27.4% during the forecast period.
The major factors driving the gamification market’s growth include rewards and recognition for employees over performance, resulting in increased engagement, provision of lucrative offers to the customers and consumers, and gamification yielding higher Return on Investment (RoI).
Gamification in Retail E-Commerce (The Retail Segment Holds the Largest Share in the Market)
Retail gamification is an e-commerce trend that is growing at a tremendous pace. According to a study, online retailers will want to continue creating interactive experiences for customers to drive higher sales growth in their stores.
Gamification apps have proven to improve leads and sales for several retailers. Gamification can also drive new and recurring customers to a store while offering insights into how shoppers engage with a brand.
This data predicts that by the end of 2020, global eCommerce sales will reach $4.2 trillion and makeup 16% of total retail sales. And these numbers are only predicted to go up as we move to 2025.
Gamification in the Telecommunication Sector
Telecom companies are facing severe competition from other service providers, due to which the adoption of a customer-centric approach has become very crucial. Increasing the number of subscribers with consistent experiences across all channels is the main goal of companies, which can be achieved only through customer-focused offerings. It is predicted that the telecom segment will grow to a high CAGR during the forecast period.
Since the customer has become highly informed and is likely to avail multiple services, companies have to incorporate gamification in their business models. These companies have limited jurisdiction over the content and offerings, but the customer is going to hold them accountable for quality and availability. Companies can know about consumer satisfaction and engage them for new offers and rewards with the gamification solution.
As per a TMR report, a revenue generation of US$1.4 bn could be promised to be achieved by the global telecommunication services market in 2025.
Gamification in the Healthcare Industry
The Global Healthcare Gamification Market is expected to grow at a CAGR of around 53.2% over the next five years to reach approximately $13.58 billion by 2025. Gamification will play a massive role in creating engaging healthcare applications and fitness solutions.
Some of the prominent trends that the market is witnessing are various gamified exercises for older people, mobile health applications have been using game-based rewards strategy to encourage drug adherence, some telehealth programs to educate patients and health workers, and simulation-based training will be extensively used to train healthcare professionals.
The market is divided into consumer-based solutions and enterprise-based solutions. The Application market is segmented into fitness management, medical training, medication management, physical therapy, and other applications.
Gamification in the Automotive Industry
Gamification in the automotive industry is an upward trend. Many automotive companies are increasingly taking advantage of gamification and digital engagement principles to motivate employees and customers alike. Thus, car brands generate more attention and leverage long-term loyalty.
The increasing penetration of smartphones, customized services, tech-savvy customers compels the automotive industry to integrate gamification technologies.
Wearables, virtual reality (VR), augmented reality (AR), biometrics, gesture recognition, graffiti walls, rotoscope technology, QR codes, holographic projection, cloud-based mobile, and Web applications are the key gamification technologies used across the automotive digitalization pillars of digital retailing, mobility-as-a-service (MaaS), connected and autonomous cars, industry 4.0, & connected supply chain.
The market will record a CAGR of 23.20%, from $1.8 billion to $14.5 billion (2016-2025). The convergence of gamification technologies in automotive provides an exciting space for OEMs and tier 1 suppliers to pursue different forms of products and services.
Case study: Lexus – A Augmented Reality App
In 2020, Lexus released an app to preview the new edition of the IS model, which will be launched in 2021.
Using their smartphone, users can view a virtual car directly in their home, view it from all sides, and open the doors. The car can be personalized, and its color can be adjusted.
So, where’s the gamification in it? Here’s the trick to this example: users can virtually drive the car and chase it around their own house like a remote-controlled toy – all via the smartphone screen, of course because the car only exists virtually.
Lexus has also built a snapshot function to increase its outreach and visibility on social media organically. Once the car has been customized by the user and placed in a suitable environment, it can be photographed and published on social media.
Gamification is already playing a beneficial role in many industries, and its future is even brighter than the current time. With the advancement in smartphone applications, cloud-based computing (SaaS), and its penetration in masses, gamification is emerging as the best solution to engage, motivate and drive users for desired actions in different industries.