Enjoy complimentary customisation on priority with our Enterprise License!
The online gaming market size is forecast to increase by USD 75.2 billion at a CAGR of 14.55% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing popularity of regulated sports betting and the emergence of new technologies such as 5G and cloud gaming. These advancements require substantial infrastructure investments, including data centers and high-speed internet connections. The shift towards streaming services and monthly fee models is also on the rise, offering players unlimited access to a vast library of games through web browsers or game consoles. However, challenges persist, including input lag and the need for gamepad controllers with stable Wi-Fi connections. Additionally, cybercriminals pose a threat, targeting sensitive information and personal data, while chat functions provide opportunities for inappropriate content. Despite these challenges, the market continues to evolve, offering endless opportunities for innovation and growth.
The market has experienced significant growth in recent years, with a shift towards online and digital games becoming increasingly popular among B2C enterprises and consumers. Online games, including downloadable titles, have gained traction due to their accessibility and convenience, leading to an increase in consumer spending. According to third-party studies and survey results, mobile games, particularly those offered on gaming networks, have become a major contributor to this trend. Game genres such as first-person shooters, sports simulations, and esports have seen particular success, with in-game chat and voice chat features enabling more enriching experiences. The proliferation of 3D games and the widespread use of smartphones and personal computers have further fueled the growth of the market. Despite concerns over addiction, the internet's role as a platform for gaming continues to expand, with gaming consoles also offering online capabilities.
The 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 action segment is estimated to witness significant growth during the forecast period. The market continues to evolve, with voice chat becoming an essential feature for mobile device users to enhance their multiplayer experience. Esports tournaments featuring 3D games like Fortnite and PlayerUnknown's Battlegrounds have gained massive popularity, attracting millions of viewers and substantial revenue through crypto currency and non-fungible tokens (NFTs) sold on blockchain platforms. Action games, a significant segment within the video game industry, cater to a diverse range of players. These games offer thrilling experiences with engaging stories, challenges, and dynamic gameplay. Subcategories such as first-person shooter (FPS) and third-person shooter (TPS) games, as well as melee combat titles, each have distinct audiences.
For instance, FPS games like Call of Duty are renowned for their intense multiplayer modes, while TPS games like Gears of War and The Division offer unique perspectives and gameplay styles. The thematic elements within action games are driving their growth, with Firewalk Studios, Haven Interactive Studios, and Bungie leading the way in producing innovative titles. Puzzle games and adventure games also contribute to the market's expansion, catering to players seeking more cerebral challenges. The addiction potential of online gaming is a concern for some, with resources like The Recovery Village offering support for those experiencing issues. Overall, the market continues to expand, driven by technological advancements and the diverse range of games available.
Get a glance at the market share of various segments Request Free Sample
The action segment accounted for USD 12.66 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
In 2023, the Asia Pacific (APAC) region emerged as the largest market for online gaming, accounting for a significant revenue share. Key contributors to this growth included China, South Korea, and Japan. The popularity of voice chat and 3D games on PCs in Southeast Asia, coupled with the expansion of broadband connectivity, fueled the market's dominance in this region. Moreover, the APAC market witnessed a high growth rate during the forecast period due to the rollout of 5G networks. For instance, China Mobile, China Unicorn, and China Telecom activated their 5G networks in October 2019. This technological advancement facilitated seamless gaming experiences on mobile devices, particularly smartphones, paving the way for the growth of mobile gaming.
Furthermore, the market in APAC also saw the emergence of Esports and the adoption of cryptocurrency, non-fungible tokens (NFTs), and blockchain technology. Companies like Firewalk Studios, Haven Interactive Studios, and Bungie introduced puzzle games, action games, and adventure games, catering to diverse gaming preferences. The Recovery Village prioritized the potential risks of online gaming addiction, while the gaming industry continued to innovate and evolve.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising popularity of e-sports is the key driver of the market. The market encompasses B2C enterprises offering Digital video games in various formats, including Download games and Mobile games. Gaming networks facilitate the distribution and accessibility of these offerings, leading to increased Consumer spending on this industry. According to third-party studies and Survey results, Performance factors and Forecasting techniques, such as the S-curve function and Exponential trend smoothing, indicate an exponential growth trend.
Moreover, this expansion is influenced by factors like 4G coverage and the availability of Statistical offices providing data on Game genres and In-game chat. Notable events, such as the League of Legends World Championship and Federation Internationale de Football Association (FIFA) Interactive World Cup, attract massive audiences through live broadcasts. In December 2022, Tencent Holdings Ltd. Organized the Call of Duty mobile World Champions LAN event, with sixteen teams from around the world participating.
Growth in free-to-play model is the upcoming trend in the market. The market, comprised of digital video games that can be downloaded or played on mobile devices, has witnessed significant growth in recent years. According to various third-party studies and survey results, consumer spending on online games has been on an exponential trend, driven by the popularity of the free-to-play model. In this model, B2C enterprises offer games for free, generating revenue through the sale of virtual currencies and goods.
Furthermore, these virtual items can be used to enhance the gaming experience, with examples ranging from avatars to weapons and magical powers. Performance factors, such as 4G coverage and advanced gaming networks, have contributed to the increasing appeal of online games. Forecasting techniques, including the S-curve function and exponential trend smoothing, indicate continued growth in this sector.
High infrastructural requirements for supporting online gaming is a key challenge affecting the market growth. The global B2C market for digital video games, including online games and downloadable titles, is experiencing significant growth, with mobile games and gaming networks leading the charge. According to various third-party studies and survey results, consumer spending on online games is forecasted to continue its exponential trend, with the S-curve function being a commonly used forecasting technique.
Furthermore, performance factors, such as graphics, sound, and connectivity, are crucial for the success of online games. However, the extensive infrastructure requirement for supporting online gaming, including high-speed and latency-free broadband services, poses a challenge, particularly in emerging economies. Internet service providers find it financially unviable to expand into rural areas, where 4G coverage is limited and the number of users per square mile is low. This adversely affects the installation of broadband services, making the adoption of online gaming a challenge. Game genres, such as first-person shooters and in-game chat, require strong and reliable networks to ensure an optimal user experience.
The market forecasting report includes the adoption lifecycle of the market, 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 analysis strategies.
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.
Activision Blizzard Inc - The company offers online gaming products such as Overwatch, World of Warcraft, Call of Duty.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 market is experiencing exponential growth, driven by the increasing popularity of digital video games, mobile games, and gaming networks. According to third-party studies and survey results, consumer spending on online games reached record highs in the past year. Performance factors such as graphics, compatibility, and input lag continue to be key performance indicators for gamers. Forecasting techniques, including the s-curve function and exponential trend smoothing, indicate continued growth in the market. The proliferation of 4G coverage and the emergence of 5G have made online gaming more accessible than ever before. Mobile devices, including smartphones, are becoming the primary platform for gaming, with esports and 3D games leading the charge.
Moreover, in-game chat and voice chat have become essential features for social gamers, while serious gamers prefer first-person shooters, sports simulations, and puzzle games. Blockchain technology is disrupting the market with the emergence of crypto currency, non-fungible tokens (NFTs), and regulated sports betting. Virtual worlds, cloud gaming services, and streaming services are also gaining popularity, with monthly fees and infrastructure costs being key business model considerations. However, concerns around security, including data breaches and cybercriminals, remain a significant challenge for game publishers. Virtual reality (VR), augmented reality (AR), and extended reality (XR) are set to revolutionize the online gaming experience, offering enriching multi-user experiences and in-game concerts. Intellectual property protection and consumer trust are critical issues in the market, with game duplication and cloned games posing significant challenges to original game reputations and ratings.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
177 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 14.55% |
|
Market growth 2024-2028 |
USD 75.2 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
13.56 |
|
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 44% |
|
Key countries |
US, China, Japan, South Korea, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Activision Blizzard Inc., Alphabet Inc., Apple Inc., ArkGames, Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., GREE Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., NEXON Co Ltd., Nintendo Co. Ltd., PopReach Corp., Sega Corp., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Zeptolab UK Ltd. |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
