Video Game Market Overview
The Video Game Market is projected to grow from USD 42.158 billion in 2024 to USD 67.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2024 - 2032). Additionally, the market size for video game was valued at USD 39.4 billion in 2023.
Technology advances, continued software and hardware innovation, rising internet penetration, and real-time graphics rendering improvements, are the key market drivers enhancing the market growth.
Figure 1: Video Game Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Video Game Market Trends
- Advances in technology and continued innovation is driving the market growth
It is predicted that technological breakthroughs and ongoing innovation in hardware and software to improve real-time depiction of images will fuel market expansion throughout the course of the anticipated timeframe. The industry is anticipated to expand as a result of widespread smartphone use, rising internet usage, and the accessibility of online games. Over the course of the forecast period, it is projected that the popularity of multiplayer, Free2Play (F2P), and massively multiplayer online (MMO) games will continue to rise. Therefore, game creators place a high value on hardware efficiency and compatibility. The widespread adoption of cutting-edge gaming consoles with complex features, like record & share and cross-platform games, is being encouraged by changing consumer preferences and rising levels of disposable wealth around the world. Since they have noticed that many people utilise social media to find the video game of their choice, game developers are publishing a variety of games on social media to draw gamers, including action, role-playing, simulation, and strategy games. Sales of video games and associated accessories are also influenced by the rising recognition of e-sports competitions and the rise in the number of professional athletes. The potential of gaming as a technique for promoting cognitive learning is also being researched. Despite being in its infancy, the idea of "gaming to learn" is steadily growing in popularity.
Games have become more graphically sound and extremely beneficial as a result of the rising integration of 3D, high-definition visuals, sound effects, Virtual Reality (VR), and Augmented Reality (AR). Because they are more attractive, they have a better chance of attracting a sizable customer base. Reality is now more faithfully reflected in video games. They appear more realistic because to the greater visual effects, finishing, and sound effects.
Game makers are concentrating on creating more realistic graphics for their games as a result of the transition from 8-bit to 64-bit resolution. Because of the quick and continuous advancements in technology, game production is now more user-centric and personalised. Due to the enhanced customer involvement and likeability of the resolution technology improvement, the market develops quickly. On high-definition monitors, such as HD, FHD, UHD, and 4K, you can see the video games' decent visuals. The demand for more realistic video games has substantially increased due to high-definition monitors' availability in 720p and 1080p. Apple, for example, announced in October 2022 that it would debut its new 27-inch external display for marketing in the first quarter of the following year. This external display is 5K thanks to Apple's ProMotion technology, which can increase the refresh rate to 120Hz and alter it depending on the situation. Thus, driving the Video Game market revenue.
Video Game Market Industry Insights
Video Game Gaming Device Insights
The global Video Game market segmentation, based on Gaming Device, includes Console, Tablet, and Smartphone. Smartphone segment dominated the global market in 2022. During the anticipated time term, it is expected that the smartphone category will continue to rule the market. The global smartphone penetration rate is one factor promoting the growth of the smartphone market. It is also possible to draw a connection between the expansion of the smartphone industry and the rise in popularity of portable tablets with bigger screens that are better for playing games.
Video Game Gaming Type Insights
The global Video Game market segmentation, based on Gaming Type, includes Online and Offline. Offline segment dominated the global market in 2022. The category is expanding as multiplayer video games become more and more popular. Online gaming also makes it possible to communicate with other players in-game, which enhances the overall gaming experience and is positive for the sector's growth. Social networking sites are particularly good at giving online video games a virtual platform.
Video Game End User Insights
The global Video Game market segmentation, based on End User, includes Kids, Teenagers, and Adults. Teenagers segment dominated the global Video Game market in 2022. Due to improvements in mobile and laptop technology, today's teenagers have grown up in a highly technologically advanced society. As a result, they are more digitally savvy than their ancestors.
Figure 2: Video Game Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Video Game Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Video Game Market dominated this market in 2022 (45.80%). Currently, a sizable percentage of the industry is accounted for by North America, thanks to the ever-expanding technological advancements in consoles and other devices. The gaming industry has seen an exponential expansion in North America as a result of recent advancements in gadget technology and ubiquitous internet accessibility. Further, the U.S. Video Game market held the largest market share, and the Canada Video Game market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: VIDEO GAME MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Video Game market accounted for the healthy market share in 2022. Due to the rising popularity of online gaming contests in Europe and the increasing number of online gamers, players in the industry are releasing solutions that might allow gamers to access AAA titles. Further, the German Video Game market held the largest market share, and the U.K Video Game market was the fastest growing market in the European region
The Asia Pacific Video Game market is expected to register significant growth from 2023 to 2032. Due to China's development into a major gaming hub, the regional market was able to dominate the global market. China's relentless increase in smartphone penetration is fueling regional market expansion. Tencent Holdings Limited of China has risen to the top of the global video game market as a result of actively pursuing inorganic development strategies like the acquisition of Riot Games and Supercell Oy. Moreover, China’s Video Game market held the largest market share and the Indian Video Game market was the fastest growing market in the Asia-Pacific region.
Video Game Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Video Game market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Video Game End User must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Video Game End User to benefit clients and increase the market sector. In recent years, the Video Game End User has offered some of the most significant advantages to medicine. Major players in the Video Game market, including Sony Corporation, Microsoft Corporation, Apple Inc., Google LLC, Bandai Namco Entertainment Inc., Take-Two Interactive Software Inc., Nintendo Co. Ltd, Activision Blizzard Inc., Electronic Arts Inc., and Ubisoft Entertainment SA, are attempting to increase market demand by investing in research and development Gaming Devices.
Sony Group Corp. (Sony) manufactures a variety of products, including devices, tools, medical equipment, semiconductors, and electronics. The company's products include batteries, software, televisions, cell phones, cameras, music systems, game consoles, and other electrical equipment. Sony produces, buys, and distributes motion films, television programmes, and recorded music in addition to operating television and digital networks. Through distributors, sales divisions, and online direct sales, the company promotes its products. Under the names Airpeak, Sony, PlayStation, Walkman, Blu-ray, Cyber-shot, Bravia, Exmor, and Experia, it offers products for sale. Africa, the Middle East, Asia-Pacific, and the Americas are all where the company has activities. Sony's corporate headquarters are in Minato-Ku, Tokyo, Japan. In November 2020, Sony unveiled the Play Station 5 in the United States. The console was superior to its successor both technologically and aesthetically.
Tencent Holdings Ltd. (Tencent) provides internet services and portals. The company offers services such wireless internet, interactive entertainment, instant messaging, online media, e-commerce, and online advertising. Additionally, it offers entertainment, information, and communication services. Value-added services, online commerce and payment services, and value-added services are all provided through its portals. The company also operates in the sale of products, copyright licencing, production and distribution of films and television shows for third parties, among other activities. Tencent operates the websites Tencent Pictures, QQ, Weixin/WeChat, QQ Wallet, Q Zone, QQ Browser, and QQMail to offer its services. Encent has business operations in North America, Asia-Pacific, Europe, the Middle East, and Africa. Its headquarters are in Shenzhen, Guangdong, China. Tencent Holdings Limited and NVIDIA Corporation introduced START, a new cloud gaming service, in December 2021 to let gamers play AAA games on low-end devices.
Key Companies in the Video Game market include
Video Game End User Developments
July 2022: Asus expanded its ROG series of gaming smartphones by releasing the ROG Phone 6 and ROG Phone 6 Pro. The smartphone includes a 165Hz AMOLED screen, the most latest Snapdragon 8+ Gen 1 system-on-chip, IPX4 certification, up to 18GB of RAM, and 512GB of internal storage.
Video Game Market Segmentation
Video Game Gaming Device Outlook
- Console
- Tablet
- Smartphone
Video Game Gaming Type Outlook
Video Game End User Outlook
Video Game Regional Outlook
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North America
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
