The German came into the final race of the season 17 points behind his Mercedes team-mate and needed a victory - combined with a finish of third or lower for Hamilton - to overtake his rival.
As it transpired, even the much-talked about double points system in place for the season finale did not come into play, as Rosberg was plagued by a mechanical failure that saw him lose significant power.
Rosberg's lack of pace saw him drop back through the field, eventually finishing 14th while Hamilton won for the 11th time in 2014 to secure his second world title.
The pair, whose sporting rivalry had threatened to boil over at various points during the season, shared an embrace after the conclusion of the race, and Rosberg paid tribute to the champion.
"I'm very disappointed," he said. "All in all, Lewis deserved to win the championship.
"What happened to me had no impact, it did not change anything so there is no point focusing on that.
"He did just a little bit better than me. The positive is I've been the better qualifier over the last two years and that gives me a good base.
"I came very close and it is a pity it did not work out. I'm proud to have been here with the team.
"It's been very intense, a very special weekend for me with so much support.
"I still believed for a long time. There was always the possibility that Lewis would get something wrong with his car. I never give up and always push and that's why I wanted to finished.
"It's been an intense battle but a great battle. I race for battles like that. Lewis has been the best and it has been a great challenge. Most of the time it has been extremely enjoyable.
"It's pretty easy to come back next year. I will be testing Tuesday - although I don't know what state I will be in."