The video game market is anticipated to have a prodigious CAGR of 13.5% during the forecast period of 2023 to 2033. According to FMI, the video game market is expected to grow from USD 227 billion in 2023 to USD 805.3 billion by 2033.
The demand for video games is anticipated to increase with the emergence of smartphones and advancements in hardware and software to improve the real-time rendering of visuals.
Massively multiplayer online (MMO), Free2Play (F2P), and multiplayer games are becoming increasingly popular, and this video game market trend is expected to continue over the course of the forecast period. As a result, hardware efficiency and compatibility are of particular interest to game developers.
The widespread adoption of cutting-edge gaming consoles with complex functionality, like record & share and cross-platform gameplay, is being fueled by shifting consumer preferences, rising the video game market size.
The video game market share is anticipated to increase as a result of the widespread use of smartphones, rising internet penetration, and the accessibility of online games. One of the primary drivers of the market's growth in the upcoming years is the introduction of increasingly innovative gaming features by video game market key players.
Voice recognition, downloadable content, and cutting-edge computer graphics are just a few of the gaming technologies that improve user experiences and increase demand for video games.
| Attributes | Details |
|---|---|
| Video Game Market CAGR (2023 to 2033) | 13.5% |
| Video Game Market Size (2023) | USD 227 billion |
| Video Game Market Size (2033) | USD 805.3 billion |
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The demand for video game consoles is fueled by features in games like voice recognition, downloadable content, and improved computer graphics that improve user experiences. Further, sales of video games and peripherals are also being driven by the growing popularity of e-sports competitions and the rise in several professional players.
Gaming's potential as a tool for fostering cognitive learning is also being investigated. Though still in its infancy, the idea of "gaming to study" is slowly gaining popularity, giving a new perspective to the video game market outlook.
Video game market trends like new gaming features and applications for mobile, PC, tablet, and console platforms are created as a result of the integration of new technology features like virtual reality and mixed reality, AI, and blockchain.
Game makers are releasing a variety of games on social media to draw in players, including action, role-playing, simulation, and strategy games, which provide several lucrative opportunities for the video game market as a result of realizing that many people utilize social media to find the video game of their choice,
Nations like China and Indonesia are seeing an increase in sales of counterfeit goods, which is unfortunate news for the video game market expansion due to their generally lower pricing,
Growing worries about data security and piracy protection, as well as an increase in gaming-related fraud, are all possible dangers that could impede the video game market growth. Over the course of the forecast period, the video game market growth is also anticipated to be constrained by a sharp increase in health problems and disorders associated with video game addiction.
The global video games market's potential to generate income is predicted to be constrained by the expansion of free-to-play and cheap mobile and laptop games. One of the challenges faced by the video game market key participants is anticipated to be managing the cost and quality of video games.
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With a revenue share of more than 45% in 2022, the mobile segment dominated the video game market. Over the course of the forecast, the mobile category is anticipated to maintain its market dominance. Also, the global increase in smartphone adoption is responsible for the mobile market's expansion.
The rising desire for mobile tablets with large displays, which ensures better gaming experiences, is another factor contributing to the expansion of the video game market share. Over the course of the projected period, the segment's growth is anticipated to be significantly influenced by the increasing sales of handheld gaming consoles.
The console segment is anticipated to expand in the video game market at a significant clip. The console segment is expected to increase as a result of vital features like premium displays and sound systems, which are made to give players an enhanced and improved experience.
With a market share of around 64% in 2022, the offline sector dominated the video game market. However, during the projected period, the online category is anticipated to increase at a significant CAGR.
The increasing acceptance of multiplayer video games is responsible for the segment's expansion. Additionally, online games enable in-game communication and help to improve the entire gaming experience, which is encouraging for the video game market expansion.
Particularly effective in providing a virtual platform for online video games are social networking sites. Another factor that is anticipated to significantly contribute to the expansion of the online segment is the increased demand for interactive entertainment systems and the growing number of gamers who view online video games as their preferred form of entertainment.
With a revenue share of more than 55% in 2022, the Asia Pacific region dominated the video game market. The regional market was able to dominate the international industry due to China's rise as a significant gaming hub.
The growth of the regional market is being driven by China's unrelenting rise in smartphone adoption. Due to aggressively pursuing inorganic development tactics like the acquisition of Riot Games and Supercell Oy, Tencent Holdings Limited of China has become the leading participant in the global video game market.
Market players in Asia Pacific are launching systems that may enable gamers to access AAA games, due to the growing number of online gamers and the popularity of online gaming tournaments, making their substantial stand in the video game market share.
Game developers in America like Microsoft, Cave Digger, and many others have begun integrating AR/VR technologies into their games. The Nielsen Company reports that among gamers and the general public in the United States, awareness of AR/VR-specific gadgets climbed from 37% in 2016 to 63% in 2017.
North America’s video game market is anticipated to expand owing to the growing acceptance of virtual reality and mixed reality features by game development businesses. North America accounted for a market share of 41% in 2022.
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Future development prospects for the video game market are very favorable. It is a significantly growing sector of the economy, and new players are entering the market to introduce innovations.
Among new video game market players, the 2018-founded Epik Prime collaborates with game creators to facilitate the release of in-game digital goods. It is supported by Nintendo and presently collaborates with over 250 businesses representing more than 1,000 video game brands.
Manticore Games, which was established in 2016 and is profitable enough, is the creator and owner of Core, a virtual playground. The Unreal Engine-based Core dubbed the "gateway to the multiverse," is home to what seems like an infinite number of games, ranging from first-person shooters to massively multiplayer online role-playing games and everything in between.
The video game market is fragmented as a result of the large number of well-established market rivals and new entrants. Businesses all across the world are concentrating on capacity growth and process innovation.
| Attributes | Details |
|---|---|
| Growth Rate | CAGR of 13.5% from 2023 to 2033 |
| Projected Market Size (2023) | USD 227 billion |
| Estimated Market Size (2033) | USD 805.3 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Product, End-use, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia & Pacific; East Asia; The Middle East & Africa (MEA) |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Activision Blizzard; Apple Inc.; Disney; Electronics Art Inc.; Lucid Games; Microsoft; Nintendo; Rovio Entertainment Corporation; Sony Interactive Entertainment Inc.; Tencent Holdings Limited |
| Customization | Available Upon Request |
The video game market is estimated to capture a valuation of USD 227 billion in 2023.
The integration of voice recognition and improved graphics are the key marketing strategies.
The market is estimated to secure a valuation of USD 805.3 million by 2033.
The rising e-sports contests are the current market trends.
Offline type holds lucrative opportunities in the global market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Device 5.1. Console 5.2. Mobile 5.3. Computer 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 6.1. Online 6.2. Offline 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Activision Blizzard 17.2. Apple Inc. 17.3. Disney 17.4. Electronics Art Inc. 17.5. Lucid Games 17.6. Microsoft 17.7. Nintendo 17.8. Rovio Entertainment Corporation 17.9. Sony Interactive Entertainment Inc. 17.10. Tencent Holdings Limited 18. Assumptions & Acronyms Used 19. Research Methodology
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