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The global gaming market size is forecasted to grow/decline by USD 117.2 billion at a CAGR of 9.56% between 2023 and 2028. The market is propelled by the growing adoption of augmented reality (AR) and virtual reality (VR) games, catering to a diverse audience. The surge in e-sports popularity further fuels market expansion, with competitive gaming becoming a mainstream entertainment choice. Additionally, strategic partnerships and acquisitions among industry giants contribute significantly to market dynamics, fostering innovation and enhancing gaming experiences. As technology continues to evolve, the gaming sector stands at the forefront of entertainment, offering immersive experiences and driving unprecedented growth opportunities.
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The market share growth by the casual gaming segment will be significant during the forecast period. The term casual refers to games that don't require a great deal of time to be played, won, and earned. Casual gamers are gamers who don't spend a lot of time playing video games. These service providers generate revenue by licensing software to end users. The casual games segment is growing with the spread of mobile games. Casual gamers don't spend money on these peripherals. Most casual gamers prefer mobile devices over PCs and consoles because of easy access to the games. In addition, casual gamers play games online on their mobile devices, as it is easy for them to play games of their choice from anywhere at any time.
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The segment was valued at USD 89.20 billion in 2018. The segment has become increasingly popular, driven by a number of factors such as its accessibility, where the games are easy to pick up and play, and they can be played on a variety of devices, including smartphones, tablets, and PCs. This makes them accessible to a wide range of players, and another such drive can be its social Interaction model, where many casual games are designed to be played with friends or family members, either locally or online. This social element adds an extra layer of fun and engagement to the experience, which can drive the segment in the forecast period.
APAC is estimated to contribute 53% during the projection period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast years. APAC is considered the center of pro gamers. The prevalence of e-sports in developing countries such as Taiwan, Malaysia, and Singapore will contribute to the growth of the market in APAC during the forecast period. Major digital gaming companies operating in the region include China-based Tencent and GungHo Online Entertainment. In addition, most hardware suppliers, including Sony and Nintendo, are based in Japan, so most innovations in this technology are adopted in Japan. China dominates the market in this region. The country has over 700 million active internet users. These factors have increased the popularity in the country.
The gaming market continues to flourish as a leading form of entertainment, providing stress relief, teamwork opportunities, and a sense of achievement for players of all ages. From kids to older adults, gaming on platforms like iPads offers joy and self-satisfaction. With the rise of home entertainment, families engage in bonding experiences through gaming sessions. The youth population drives demand for indoor games, including shooters, action, and sports genres, featuring 3D realistic graphics and tactical missions. Moreover, advancements like 5G connectivity, as highlighted in the GSMA report, enhance the gaming experience across tablets, mobile phones, TVs/consoles, and PCs/MMOs. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of upcoming trends and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The growing adoption of AR and VR games is a major factor driving the market share. AR/VR is the integration of visual and audio content with a user's environment in real time. With the rising awareness of AR gaming, the adoption of AR/VR devices is likely to increase during the forecast period. Therefore, game developers prefer AR and VR devices to traditional devices. Companies such as Sony and Microsoft are developing these platforms using cutting-edge three-dimensional (3D) technologies. In addition, developers have started developing AR games for HoloLens, a product of Microsoft. For instance, in January 2022, Microsoft HoloLens 2 was launched in India, which includes sensors that enable head and eye tracking and is designed to allow users to interact with holograms.
The affordability and wide availability of mobile AR games are driving the growth of the global market. For instance, in November 2021, Niantic Inc. partnered with Fold, a cryptocurrency debit card company, and launched a new game dubbed FoldAR. The game is a part of the metaverse and is similar to Pokemon GO. Thus, the rising adoption of AR and VR games will drive the growth of the global market during the forecast period.
The increasing emergence of cloud gaming is an ongoing trend in the market share. This can be accessed through Internet-connected devices for free or through paid subscriptions. This technology enables users to stream video games from the web. The increasing popularity of social media and mobile is supporting the growth of cloud gaming. These services have the potential to reach non-core gamers who play games on social media and mobile devices because of the cost-effective price structure of cloud gaming.
Furthermore, this eliminates the need for high-quality graphic cards in PCs and mandatory PC upgrades and offers an enhanced experience on any device that has average processing capability. Therefore, it allows users to access these games on PCs with less storage and processing capacity. Thus, the emergence of this technology will drive the growth of the global market during the forecast period.
Regulation of loot boxes is a major challenge restricting the growth of the market. Loot boxes are virtual items that players can purchase with real money in order to obtain randomized in-game rewards. While they can enhance the experience for some players, they have also been criticized for promoting gambling and exploiting vulnerable individuals, particularly children. Regulators in various countries have been taking action to address these concerns. For example, in 2020, the UK government announced that loot boxes would be classified as gambling and regulated accordingly. Similarly, the Belgian Gaming Commission has banned loot boxes altogether, while other countries such as Australia and the Netherlands have also taken steps to regulate them.
These regulations can have significant implications for game developers and publishers, who may need to modify their games or business models in order to comply. They may also affect player behavior, as some may be less willing to purchase loot boxes if they are subject to stringent regulations, which will restrict the growth of the market in the forecast period.
Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Microsoft Corp.- The company offers various games such as Asphalt 9, Hill climbing racing games, Minecraft, and Robolox games.
The gaming market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Activision Blizzard Inc., Apple Inc., Bandai Namco Holdings Inc., Bowlero Corp., Chicago Gaming Co., DeNA Co. Ltd., Electronic Arts Inc., Epic Games Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., Netmarble Corp., Niantic Inc., Nintendo Co., Ltd., Rovio Entertainment Corp., Sony Group Corp., Square Enix Holdings Co. Ltd., The Walt Disney Co., Ubisoft Entertainment SA, and Zeptolab UK Ltd.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The gaming market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The gaming market offers more than just entertainment; it provides avenues for stress relief, teamwork, and a sense of achievement. From kids to older adults, gaming consoles like TV/console, PC/MMO, tablet, and mobile phone cater to diverse demographics, fostering joy and self-satisfaction through immersive experiences. These systems utilize cameras, graphical processing units (GPUs), and image processing technology to inspect products, ensure quality control, and enhance automation. As the youth population increasingly embraces gaming, it intertwines with education through educational courses and tactical missions, leveraging 3D realistic graphics and 5G technology. Gaming serves as a platform for family game time and home entertainment systems, combating social anxiety and promoting teamwork. Reports like the GSMA report highlight the industry's growth and significance, showcasing its pivotal role in modern society's leisure and educational landscapes.
The market caters to diverse preferences, offering indoor games and leisure activities like painting and crafting for individuals seeking self-satisfaction and traction in their downtime. With 4G connectivity and mobile cellular subscriptions, players delve into interactive social media games, though concerns regarding addiction issues persist, especially in intense gaming genres like shooter ones and role-playing games featuring attractive weapons. Multiplayer game functionality enhances social interaction, creating immersive game worlds where players engage in sports simulations and collaborative ventures, sometimes even integrating education courses. Technological advancements like cloud gaming services and emerging economies drive the market forward, facilitating seamless internet connectivity and bandwidth network connectivity, shaping the future of gaming experiences globally.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2017-2021 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.56% |
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Market growth 2024-2028 |
USD 117.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.79 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 53% |
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Key countries |
China, US, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Activision Blizzard Inc., Apple Inc., Bandai Namco Holdings Inc., Bowlero Corp., Chicago Gaming Co., DeNA Co. Ltd., Electronic Arts Inc., Epic Games Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., Netmarble Corp., Niantic Inc., Nintendo Co., Ltd., Rovio Entertainment Corp., Sony Group Corp., Square Enix Holdings Co. Ltd., The Walt Disney Co., Ubisoft Entertainment SA, and Zeptolab UK Ltd. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Platform
8 Market Segmentation by Device
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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