The global video games market size was valued at USD 188.73 billion in 2021 and is projected to grow from USD 199.74 billion in 2022 to USD 307.19 billion by 2029, exhibiting a CAGR of 6.3% during the forecast period. Fortune Business Insights™ mentioned this in a report titled, “Video Games Market, 2023-2029.”
List of Key Players Profiled in the Video Games Market Report:
- Sony Group Corporation (Japan)
- Microsoft (U.S.)
- Nintendo (Japan)
- Tencent (China)
- Activision Blizzard (U.S.)
- Electronic arts (U.S.)
- Epic Games (U.S.)
- Take-two interactive (U.S.)
- Ubisoft (France)
- Bandai Namco Holdings Inc. (Japan)
The report provides an extensive overview of key drivers and challenges impacting market augmentation over the forecast timeframe. It studies the market thoroughly by fragmenting it into segments and regions. Growth rate and market share estimates of each segment and region are documented as well. Moreover, the report encompasses company profiles section that briefs readers about strategic moves made by leading players and enables them to make informed decisions.
Drivers & Restraints-
Increasing Integration of Advanced Technologies will Stimulate Industry Expansion
The growing integration of 3D, sound effects, high-definition graphics, Augmented Reality (AR), and Virtual Reality (VR) in games increases their appeal. Video games nowadays are very realistic due to their high-quality visual effects, sound effects, and detailing. A shift toward user centricity and personalization is further contributing to the global video games market growth.
On the other hand, rising concerns regarding growing aggression among teenagers due to the promotion of violence in games will act as a challenge for businesses operating in this domain.
Factors Affecting the Growth of the Video Games Market:
- Technological Advancements: Advancements in technology have significantly impacted the video games market. The introduction of high-performance gaming consoles, virtual reality (VR) devices, and powerful gaming PCs has enhanced the gaming experience and attracted a larger audience.
- Increased Access to Internet and Mobile Devices: The widespread availability of high-speed internet and the proliferation of smartphones and tablets have made gaming more accessible than ever before. Mobile gaming has particularly gained popularity, allowing people to play games on the go.
- Rising Disposable Income: As disposable incomes continue to rise globally, consumers have more spending power to invest in leisure activities like gaming. The affordability of gaming consoles, PCs, and games themselves has increased, making them accessible to a broader range of consumers.
- Growing Esports Industry: Esports, or competitive video gaming, has experienced tremendous growth in recent years. The rise of professional gaming tournaments and leagues has attracted a massive audience, driving the demand for video games and related merchandise.
- Expanding Demographic Reach: Video games are no longer limited to a specific age group or gender. The industry has successfully expanded its reach to include a diverse demographic, including children, teenagers, adults, and even older adults. This expansion of the target audience has led to increased market growth.
- Digital Distribution and Online Gaming: The availability of digital distribution platforms such as Steam, PlayStation Network, and Xbox Live has revolutionized the gaming industry. Players can now easily purchase and download games directly to their devices, eliminating the need for physical copies. Online multiplayer gaming has also become increasingly popular, creating social communities and driving engagement.
- Cross-Platform Gaming: The ability to play games across multiple platforms, such as consoles, PCs, and mobile devices, has further contributed to the growth of the video games market. Cross-platform compatibility allows players to connect and compete with friends, regardless of the devices they use.
- Gaming as a Social Activity: Gaming has evolved from being a solitary activity to a social experience. Online multiplayer games, streaming platforms like Twitch, and social media integration within games have fostered a sense of community among players. This social aspect has attracted more individuals to engage in gaming.
- Constant Game Innovation and Diversification: Game developers continuously introduce new and innovative titles, genres, and gameplay mechanics to keep the market dynamic. The introduction of virtual reality, augmented reality, and other immersive technologies has opened up new possibilities and attracted consumer interest.
These factors collectively contribute to the growth of the video games market, which is expected to continue expanding as technology advances and consumer preferences evolve.
Increasing Penetration of Smartphones will Drive Market Growth
Based on device, the global market is split into smartphones, PC/laptop, and consoles. Among these, the smartphones segment held the largest video games market share. Increasing adoption of smartphones and easy access to 5G networks resulted in a rise in the number of gamers. Technological advancements in smartphones and availability of high speed internet have boosted mobile gaming, which will also aid market proliferation.
Technological Advancements and Tech Savvy Populace will Aid Market Proliferation
According to age group, the market is divided into generation X, generation Y, and generation Z. Generation Z is tech savvy as they grew up in an era of technological advancements, availability of high speed internet, and growing smart phone penetration.
Launch of Gaming Smartphones Will Propel the Market
As per platform type, the market is arrayed into online and offline. Among these, the online segment captured the largest share due to launch of new smartphones with advanced features, increasing digitization, and rapid internet penetration. The segment consists of various types of games such as first-Person Shooter Games (FPS), Multiplayer Online Battle Arena Games (MOBA), Real-Time Strategy Games (RTS), Battle Royale games, and others.
Geographically, the market is fragmented into North America, South America, Europe, Asia Pacific, and the Middle East & Africa.
Asia Pacific to Dominate Stoked by Presence of Leading Players
Asia Pacific is a leading contributor to market growth owing to the presence of leading companies in the region and rising internet and smartphone penetration. The growing usage of smartphones urges developers to focus on developing multiplayer video games such as PUBG and COD to meet the demand of expanding consumer base, which, in turn, propels market expansion.
North America is projected to grow rapidly owing to expanding gaming community, easy access to internet, and availability of devices with advanced technology.
Product Launches to Promote Market Augmentation
Leading companies often make strategic decisions such as partnerships, mergers & acquisitions, collaborations, and investments in research & developments to maximize profits. One such decision is to launch new products with advanced features to meet growing consumer requirements.
Key Industry Development-
- July 2022: Asus launched the new ROG Phone 6 Pro and ROG Phone 6 and expanded its gaming smartphone line. The phones have IPX4 rating, latest Snapdragon 8+ Gen 1 system-on-chip, 512 GB storage, and up to 18GB RAM.
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