The video game market size was valued at USD 155.09 billion in 2019 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.5% from 2020 to 2027.
Innovation and improvement in in hardware as well as gaming software are key components driving the development of the worldwide computer game market. The rising entrance of internet providers coupled with the easy availability and accessibility of games on the web across the globe is additionally expected to push the market development in the impending years. Computer game engineers are likewise continually improvingand pushing the technological limits regarding the real-time rendering of graphics in the video game industry, which is additionally expected to fuel the development of the worldwide video gaming market.
Further, the rise of cloud gaming is expected to drive the market growth. Latest advances in cutting edge cloud innovation have transformed cloud gaming into the real world. In cloud gaming, the server, where all games are stored, does all the computation work, which incorporates game scene delivering, game rationale preparing video encoding, and video web-based. A few companies, for example, Onlive, G-Cluster, StreamMyGame, Gaikai, and T5-Labs are as of now commercial cloud gaming services. This new area is likewise seen as a genuine contender for the conventional game market. This has prompted major video game companies such as Sega, Ubisoft, Epic Games, Atari, Warner Bros, Disney Interactive studio to establish partnerships with Onlive to distribute their games. Also, in May 2020, Nvidia GeForce Now added 19 games to its cloud gaming library, and further announcing an additional18 new games that will be available on GeForce NOW.
eSports are witnessing substantial market demand in the current market scenario, and are thus driving the overall gaming industry across the globe. Riot Games with League of Legends and DotA 2 are two of the notable examples of influential actors in the eSports business. South Korea is considered to be the country of origin of eSports. Even though the United States overtook South Korea in terms of revenues in the eSports business, it still hosts one of the biggest tournaments in the world. The gaming sector is additionally witnessing extensive action from new businesses, that are further impelling the market development. For example, 'The Forge Arena' made by Phoenix Rising Studio's is a Canadian startup that is hoping to turn into another major part in eSports. The game is allowed to download under similar models as Fortnite and Counterstrike, selling in-game additional items to make incomes focusing on collectible and tradeable skins.
With the outbreak of COVID-19, home entertainment is by all accounts the solitary alternative for gamers in lockdown while films and the aters proceed their' door-closed' approach to forestall the sickness. The March 2020 overview shows that video gamers in the United States revealed that they invested 45% more energy playing computer games in the midst of the quarantine than in the earlier week. Esports is another arising industry that manages to make more than a billion dollars a year. Presently, after the pandemic, it has acquired further foothold. The increment in the first-run through download of Twitch after the pandemic in March has ascended to 14% in the United States and an amazing 41% in Italy. Online play has likewise expanded, with consumers spending more time playing games with others via the internet connection. Twenty-nine percent of the US gamers said that they have been playing more with their companions online since the Covid-19 pandemic started. Moreover, internet gaming is getting its speed as probably the most ideal choice for home entertainment. The market is seeing a huge rise in downloads of the different application, and the time spent, and engagement in the internet games has additionally expanded quickly.
Many major players such as Tencent Holdings Limited (China), Nintendo Co. Ltd (Japan), Activision Blizzard Inc. (US), Electronic Arts Inc. (US), Ubisoft Entertainment SA (France), Qualcomm Wireless Communications Technologies (China) Limited,among others are actively participating in the development of Video Game.For instance, in July 2019, Tencent Games and Qualcomm Wireless Communications Technologies (China) Limited, a subsidiary of Qualcomm Incorporated, made key participation in understanding the strategic partnership, wherein they are shaping far reaching coordinated efforts in the digital entertainment field. Such developments in the market are expected to drive the growth of the Global Video Game Market during the forecast period.
The Global Video Game Market has been segmented based ongaming device, gaming type, end-user, and region. Based on gaming device, the global video game market is divided into console, tablet and smartphone. The smartphone gaming segment is expected to hold the largest share of the market. It is expected to grow at a faster rate during the forecast period owing to the rising demand for mobile games and multiple technological advancements in the market, such as AR, VR, cloud gaming. According to a research, there were more than 200 million mobile game players last year in the United States alone. Based on gaming type, the global market is divided into online and offline gaming. The online gaming segment is expected to hold the largest share of the market share and it is expected to grow at the fastest rate during the forecast period. The emergence of 5G networks and availability of unlimited data plans are also expected to be key factors towards the success of online gaming across the globe, as most gamers prefer playing games online on their mobile devices. The increasing services and investment in the 5G infrastructure are also very important towards this success. According to Ericsson, the number of 5G mobile subscriptions in the Asia-pacific region is expected to reach around 1,545 million by 2025. Based on end-user, the global market is divided into kids, teenagers and adults. The teenager segment is expected to hold the largest share of the market share and is expected to grow at the fastest rate during the forecast period.
Based on region, the Global Video Game Market is segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America. Asia-Pacific is expected to hold the largest share in the global video gaming business, where nations, for example, China, Japan, and South Korea show a high potential in market development. The Chinese undertakings are prepared to accept the business openings brought by global digitalization due to the rise in the digital ecosystem. Further, 5G technology is also driving the mobile-based VR gaming market in the China region. For instance, in May 2020, Archiact has announced a partnership with Migu, a subsidiary of telecom provider China Mobile, for Archiact’s games that would be the first VR games to be playable via Migu’s 5G cloud gaming platform, named as Migu Quick Gaming. Also, by partnering with Migu, Archiact states that it is able to work together to build the future of 5G VR cloud gaming, thus making VR even more accessible.
The video gaming market is highly fragmented as the interest for web-based games andrising penetration of mobile applications across the various regions is catering to an intense rivalry in the market. Key players in the market such as Sony Corporation, Microsoft, Nintendo, etc. try to keep innovating and releasing next-generation gaming consoles that creates a significant competition among the rivals. Recent developments in the video gaming market are –
May 2020 - Microsoft has revealed the launch of the game ‘Scarlet Nexus’ in Xbox Series X, by the end of 2020. The game claims to support the key technical features of the Xbox Series X, such as real-time ray tracing, 120-frames-per-second animation, and super-fast loading times.
April 2020 - Sony launched the first look of the DualSense wireless controller, which comes together with Playstation 5 that is going to release at the end of 2020. The features of DualSense, along with PS5’s Tempest 3D AudioTech, will deliver a new feeling of immersion to players. DualSense also adds a built-in microphone array, which will enable players to chat with friends without a headset easily.
The Global Video Game Market is expected to grow at ~14.5% CAGR during the forecast period.
By Gaming Device
By Gaming Type
The key players operating in the Global Video Game Market are Sony Corporation (Japan), Microsoft Corporation (US), Apple Inc. (US), Google LLC (US), Bandai Namco Entertainment, Inc. (Japan), Take-Two Interactive Software, Inc. (US), Nintendo Co. Ltd (Japan), Activision Blizzard Inc. (US), Electronic Arts Inc. (US), Ubisoft Entertainment SA (France), Square Enix Holdings Co. Ltd (Japan), ZeptoLab Co. Ltd (Russia), Tencent Holdings Limited (China), Sega Games Co. Ltd (Japan). Some other potential players in the global video game market are Capcom Co. Ltd (US), NetEase Inc. (China), Beijing Kunlun Technology Co. Limited (China) and Nexon Company (South Korea).
|Market Size||Significant USD|
|Forecast Units||Significant Value|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Device, Type|
|Geographies Covered||North America, Europe, Asia-Pacific|
|Key Vendors||Sony Corporation (Japan) Microsoft Corporation (US) Apple Inc. (US) Google LLC (US) Bandai Namco Entertainment Inc. (Japan) Take-Two Interactive Software Inc. (US) Nintendo Co. Ltd (Japan) Activision Blizzard Inc. (US) Electronic Arts Inc. (US) Ubisoft Entertainment SA (France)|
|Key Market Opportunities||The game is allowed to download under similar models as Fortnite and Counterstrike, selling in-game additional items to make incomes focusing on collectible and tradeable skins.|
|Key Market Drivers||Latest advances in cutting edge cloud innovation have transformed cloud gaming into the real world.|
The video game market size was esteemed at USD 345.10 billion out of 2027.
Easy availability and accessibility of games on the web and rise of cloud gaming are the key factors driving the video game market growth
Key contenders profiled in the video game market include Sony Corporation (Japan), Microsoft Corporation (US), Apple Inc. (US), Google LLC (US), Bandai Namco Entertainment, Inc. (Japan), Take-Two Interactive Software, Inc. (US), Nintendo Co. Ltd (Japan), Activision Blizzard Inc. (US), Electronic Arts Inc. (US), Ubisoft Entertainment SA (France), Square Enix Holdings Co. Ltd (Japan), ZeptoLab Co. Ltd (Russia), Tencent Holdings Limited (China), Sega Games Co. Ltd (Japan). The other players include Capcom Co. Ltd (US), NetEase Inc. (China), Beijing Kunlun Technology Co. Limited (China) and Nexon Company (South Korea).
The global video game market is predicted to grow at a 14.5% CAGR between 2020- 2027