Gaming Market

Gaming Market Size:

The global gaming market size was estimated to be US$ 221.6 Billion in 2023. Looking forward, the market is expected to expand from US$ 241.1 Billion in 2024 to US$ 471.3 Billion by 2032, with a growth rate (CAGR) of 8.74% over the forecast period. The rising popularity of gaming especially among young individuals, the emergence of e-sports and multiplayer video game competitions, and the increasing utilization of smartphones, tablets, and laptops are some of the major factors propelling the growth of the market.

Gaming Market Analysis:

• Major Market Drivers: Significant advancements in technology such as high-performance consoles, virtual reality (VR), and augmented reality (AR) represent the major driver of the market. These innovations enhance the gaming experience, attracting more players. The rise of mobile gaming, supported by widespread smartphone adoption and improved internet connectivity, is significantly boosting the market growth.
• Key Market Trends: The growing prominence of cloud gaming services, which allow players to stream games without high-end hardware represents the key trends of the market. The increasing integration of artificial intelligence (AI) and machine learning (ML) enhances game design and player engagement. The gaming industry is seeing a rise in cross-platform play, enabling gamers to interact across different devices.
• Geographical Trends: Asia Pacific accounts for the largest region in the gaming market growth. Rapid smartphone adoption, robust Internet infrastructure, a large young population, increasing disposable incomes, and significant investment in esports are driving the growth of the market across the Asia Pacific region.
• Competitive Landscape: Some of the major market players in the gaming industry include Tencent Holdings Limited, Sony Corporation, Microsoft Corporation, Apple Inc., Activision Blizzard, Inc., Google LLC, NetEase Inc., Electronic Arts Inc., Nintendo Co., Ltd. and Bandai Namco Holdings Inc., among many others.
• Challenges and Opportunities: The market faces various challenges including regulatory restrictions, concerns over gaming addiction, and cyber security threats. However, the market also faces several opportunities such as the expansion of cloud gaming which reduces hardware dependency, and the growing popularity of esports which attracts substantial investments, along with the rising mobile gaming and advancements in virtual reality (VR) and augmented reality (AR) technologies offering new avenues for immersive gaming experiences.
   

Gaming Market Trends:

Rising Mobile Gaming

The growing use of smartphones, along with improvements in mobile internet connectivity is making gaming accessible to a broader demographic, which is acting as a major growth-inducing factor in the market. According to industry reports, in just five years, the number of Internet users is expected to increase 47% from 5.35 billion users in 2024 to 7.9 billion users in 2029. The amount of time users spend on the Internet varies by age group, but on average, people spend 6.5 hours on the Internet every day, according to the Global Web Index. However, individuals between the ages of 16 and 24 spend an additional 2.5 hours more time online than those between the ages of 55 and 64. When it comes to having access to the Internet around the world, 75% of those between the ages of 15 and 24 have Internet access, compared to 65% of those ages 25 and over. As of 2024, the Internet is accessible to nearly 95% of the United States population, or about 322, 563, 519 individuals, according to the US Census. This is further driving the gaming market statistics significantly.

Growing Esports and Online Multiplayer Games

The increasing interest and investment in esports, along with the popularity of online multiplayer games, is driving engagement and creating a thriving community of players and spectators, which is boosting the overall gaming industry. For instance, in March 2024, Saudi Arabia’s National Development Fund (NDF) created two venture investment funds worth a combined US$120 million targeting the gaming and esports sectors. The first fund run by Merak Capital is valued at SR300 million (US$80 million). It is focused on creating a gaming accelerator to help Saudi companies become leaders in the esports field. The second investment fund managed by Impact46 will have SR150 million (US$40 million). It will aim to encourage private investment in the local gaming and esports industry.

Significant Technological Advancements

The rising innovations in gaming hardware, such as high-performance consoles, virtual reality (VR), and augmented reality (AR), are influencing the market growth. For instance, in March 2024, Virtuix, the developer of the “Omni One” full-body virtual reality (VR) treadmill and gaming system announced a lineup of 35 games for the Omni One’s consumer launch in the late quarter second of 2024. Omni One is a complete entertainment system that features a proprietary 360-degree treadmill that enables players to physically run around inside virtual reality games while remaining in the same spot in their play space. The system also comes with a customized Pico 4 Enterprise headset, as well as a dedicated game store with titles optimized for Omni One. This is expected to boost the gaming market forecast over the coming years.

Gaming Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on device type, platform, revenue type, type, and age group.

Breakup by Device Type:

• Consoles
• Mobiles and Tablets
• Computers
   

Mobiles and tablets dominate the market share

The report has provided a detailed breakup and analysis of the gaming market based on the device type. This includes consoles, mobiles and tablets, and computers. According to the report, mobiles and tablets represented the largest segment.

The demand for mobile and tablets in gaming is driven by widespread smartphone and tablet adoption, improved mobile internet connectivity, and the convenience of gaming on the go. Enhanced mobile processing power and graphics capabilities enable high-quality gaming experiences are further fueling the growth of the market. In addition to this, a vast array of affordable and free-to-play games, along with social and multiplayer features, attract a diverse audience. The increasing popularity of mobile esports and in-game purchases also contribute to the growing demand for mobile and tablet gaming.

Breakup by Platform:

• Online
• Offline
   

Offline holds the largest share in the gaming industry

A detailed breakup and analysis of the gaming market based on the platform has also been provided in the report. This includes online and offline. According to the report, offline accounted for the largest market share.

Offline gaming is often associated with single-player experiences, where players can enjoy immersive and narrative-driven games on their own. These games offer rich storytelling, character development, and exploration, allowing players to engage with the game world at their own pace without the need for an internet connection. In addition, offline gaming allows players to enjoy gaming experiences without interruptions or reliance on online services in regions with limited internet access or unstable connections. Moreover, offline gaming is particularly relevant for portable gaming devices, such as handheld consoles or mobile devices. These devices allow players to enjoy gaming experiences while traveling or in situations where an internet connection may not be available, such as during flights or in remote areas.

Breakup by Revenue Type:

• In-Game Purchase
• Game Purchase
• Advertising
   

In-game purchase exhibits a clear dominance in the market

A detailed breakup and analysis of the gaming market based on the revenue type has also been provided in the report. This includes in-game purchase, game purchase, and advertising. According to the report, in-game purchase accounted for the largest market share.

In-game purchases have proven to be a highly lucrative revenue stream for game developers and publishers. This revenue model has become increasingly prevalent, particularly in free-to-play games, as it allows developers to monetize their games by offering additional content, cosmetic items, virtual currency, or gameplay advantages for a price. Besides, In-game purchases can enhance player engagement and retention. By offering desirable in-game items or content, developers provide incentives for players to continue playing and invest in the game. Moreover, some in-game purchases offer gameplay advantages or power-ups, allowing players to progress faster or gain an edge in multiplayer matches. As a result, the desire to gain a competitive advantage or improve gameplay efficiency can drive players to make in-game purchases, thus increasing the market share of this segment.

Breakup by Type:

• Adventure/Role Playing Games
• Puzzles
• Social Games
• Strategy
• Simulation
• Others
   

Adventure/role-playing games represents the most popular gaming type

A detailed breakup and analysis of the gaming market based on the type has also been provided in the report. This includes adventure/role playing games, puzzles, social games, strategy, simulation, and others. According to the report, adventure/role playing games represented the largest segment.

Adventure/role-playing games are often known for their immersive storytelling and narrative-driven experiences. These games provide players with compelling storylines, well-developed characters, and intricate worlds to explore. The depth of storytelling and the ability for players to shape their character's journey appeal to a wide audience, attracting players who enjoy rich narratives and engaging storytelling experiences. They also offer extensive gameplay with vast open worlds, numerous quests, and a variety of gameplay mechanics. These games can provide hours of content, encouraging players to invest significant time and effort in the game world. Moreover, RPG elements in adventure games allow players to customize their characters, choose their abilities or skills, and progress through a leveling system. This customization and progression offer a sense of achievement and personalization, thus increasing the popularity of this genre.

Breakup by Age Group:

• Adult
• Children
   

Adults hold the majority of the overall market share

A detailed breakup and analysis of the gaming market based on the age group has also been provided in the report. This includes adults and children. According to the report, adults accounted for the largest market share.

The demand for gaming among adults is driven by advanced, immersive game designs and storytelling that cater to mature audiences. The growth of online multiplayer games and esports provides social and competitive opportunities. Improved accessibility through mobile and console gaming, along with flexible gaming schedules, appeals to adult lifestyles. In addition to this, nostalgia for classic games and stress relief benefits contribute to adult engagement. Increased disposable income also enables adults to invest in gaming hardware, subscriptions, and in-game purchases.

Breakup by Region:

• Asia Pacific
• North America
• Europe
• Middle East and Africa
• Latin America
   

Asia Pacific leads the market, accounting for the largest gaming market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Latin America and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for gaming.

The Asia Pacific region is home to a significant portion of the global population, including densely populated countries such as China and India. The region has experienced rapid growth in mobile gaming, driven by the widespread adoption of smartphones and increasing internet connectivity. Esports has gained immense popularity in the Asia Pacific region as countries like South Korea and China are known for their expanding esports scenes, attracting professional players, sponsors, and spectators. For instance, in 2024, South Korea unveils a plan to boost its share in the global console game market. A major focus on the console game sector will be undertaken by South Korea over the next five years as they share details of a new plan to revive and bolster their game industry. As reported by Yonhap News Agency, the Ministry of Culture, Sports and Tourism will work on expanding the country’s share in the global console game market by 2028.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the gaming industry include Tencent Holdings Limited, Sony Corporation, Microsoft Corporation, Apple Inc., Activision Blizzard, Inc., Google LLC, NetEase Inc., Electronic Arts Inc., Nintendo Co., Ltd. and Bandai Namco Holdings Inc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape of the gaming market characterizes the key players such as Sony, Microsoft, and Nintendo dominating console gaming. In mobile gaming, players including Tencent, Activision Blizzard, and Electronic Arts lead with popular titles. The rise of cloud gaming services including Google Stadia and NVIDIA GeForce Now adds new competition in the market. For instance, in May 2024, Chinese internet giant Tencent Holdings opened a new tab mobile game "Dungeon and Fighter" which was the top-selling app on Apple's App Store in China, surpassing the company's existing flagship games after it spent years looking for a new marquee title.

Gaming Market News:

• In November 2023, Sony India announced the INZONE H5 wireless headset, offering an astonishing 28 hours of uninterrupted gameplay, ensuring comfort during extended PC gameplay sessions. Developed in close collaboration with the renowned esports team Fnatic, INZONE H5 is designed for victory.
• In May 2024, Microsoft Corp. announced to launch of its online store for mobile-game consumables, creating an alternative to Apple Inc. and Google’s app stores and their fees.
• In June 2024, Apple introduced a new feature aimed at enhancing the gaming experience on iPhones: Game Mode in a surprising addition to iOS 18 announced at WWDC. This innovative mode promises to optimize the performance of your device during intense gaming sessions, offering a smoother and more immersive experience.
• In January 2022, Microsoft Corp. announced plans to acquire Activision Blizzard Inc., a leader in game development and interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft's gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse.
• In May 2024, Solana Labs announced an expanded partnership with Google Cloud to bring GameShift, its powerful Web3 gaming platform, to customers to Google Cloud. The Collaboration will expand and simplify developer access to Web3 gaming technology enabling game studios to seamlessly layer the cutting-edge Web3 capabilities into their games.

Gaming Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the gaming market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global gaming market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the gaming industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.