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The Video Game market size is projected to reach a value of USD 115.2 billion, at a CAGR of 9.44% between 2023 and 2028. Several factors are driving the growth of the market, including the increasing penetration of smartphones and improved internet access, which have expanded the gaming market. Additionally, the evolution of PC and gaming consoles has contributed to its growth. Moreover, the rising popularity of eSports tournaments has attracted a large audience and increased engagement in the gaming industry. These factors collectively indicate a significant expansion in the gaming market, driven by technological advancements and changing consumer preferences. As smartphone and internet access continue to improve, and eSports gains more traction, the market is expected to witness further growth and innovation, catering to a diverse and expanding audience.
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The market has experienced significant growth in recent years, with the rise of technologically advanced smartphones and the advent of 5G network. This has led to an increase in the popularity of online gaming, particularly 3D games. Video gamers can now enjoy real-time strategy games and other Computer game on the go, using Input device such as Gamepad, keyboards, or Controller. The integration of 5G and cloud gaming with hyper-scale cloud capabilities has revolutionized the industry. Gamers can now stream their favorite games in real-time, enabling multi-player competitions and educational purposes. The pleasure and relaxation derived from video games have become more accessible than ever before.
Game developers are constantly pushing the boundaries of technology to create immersive gaming experiences. Streaming media services have also entered the market, offering a convenient and cost-effective solution for gamers. High bandwidth network connectivity is crucial for ensuring smooth gameplay in multiplayer online battle arenas such as Massive Multiplayer Online (MMO) games, where Multi-players engage in competitive gaming experiences. Overall, the video game market is a dynamic and innovative space, offering endless possibilities for entertainment and learning. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising penetration of smartphones and improving internet access are notably driving the growth of gaming. The video game industry encompasses the development, publication, and sale of video games for various platforms. The video gaming industry has experienced substantial growth, with mobile gaming leading the charge. This segment's expansion is attributed to the widespread availability of affordable video game hardware, such as smartphones, and improved internet access. Graphics in video games have become increasingly sophisticated, with technologies like Virtual Reality (VR) enhancing the gaming experience. The industry caters to a vast community of video gamers, offering both console-based and web-based gameplay options. Hence, these factors will drive the growth of the global market during the forecast period.
The increasing popularity of gaming among women is an emerging trend in market growth. The video game market has experienced a significant demographic shift in recent years, with an increasing number of female gamers. Traditionally, men have dominated the industry, but the prevalence of mobile gaming and web-based gameplay has led to a surge in female participation. As of 2022, approximately 45% of video gamers in the US are female, and this number is projected to grow. This trend is expected to positively impact the sales of video game hardware, software, and merchandise, as well as virtual reality (VR) technology in the gaming industry. The enhanced graphics and immersive experiences offered by video games continue to attract a diverse audience. Therefore, such factors will drive the growth of the global market during the forecast period.
The increasing cost of game development of gaming are major challenge impeding market growth. The video game market has experienced significant growth, with an estimated USD180.1 billion investment in 2022. This surge in funding can be attributed to the increasing demands of video gamers for enhanced quality and innovative in-game content. Advanced graphics, intricate characters, and detailed environments are now the norm in the video gaming industry. To meet these requirements, developers utilize automated technologies like Speed Tree for realistic graphics, as well as creating custom graphics. The integration of Virtual Reality (VR) and online gaming further increases the complexity and cost of video game development. Video game hardware continues to evolve, pushing the boundaries of what is possible in the realm of video games. Hence, video game participation is being restricted, which will hinder market growth during the forecast period.
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 and forecasting strategies.
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.
Electronic Arts Inc. - The company offers games, content, and services that can be played and watched on game consoles, PCs, mobile phones, and tablets.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 share growth by the mobile devices segment will be significant during the forecast period. The video game market experienced significant growth in 2023, with mobile phones emerging as the primary platform for gamers. Interactive functionality, keyboard input, and multi-player capabilities are key features of this sector. New games offer narration, music, sound effects, and real-time strategy, appealing to a diverse audience, including casual gamers and professional video gamers.
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The mobile devices segment was valued at USD 73.50 billion in 2018. With over 3.5 billion smartphone users worldwide, the potential customer base is vast. Rising urbanization and societal availability have shifted perceptions, making video games a source of pleasure, recreation, relaxation, and social interaction. Open-source software, streaming media services, and technologically advanced smartphones have fueled innovation in this thriving profession. The ubiquity of smartphones and the versatility of games cater to various demographics, offering specialized features for spectators, supporters, and real-time strategy enthusiasts. Online gaming services provide access to a global community, enabling real-time interaction and streaming media experiences. Performance and sound quality continue to improve, making the experience more immersive and enjoyable for all. Additionally, it will boost mobile device revenue, which will fuel the expansion of the global market during the forecast period.
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APAC is estimated to contribute 56% 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. The APAC region, comprised of China, South Korea, and Japan, emerged as a significant contributor to the global video game market in 2021, driven by the popularity of interactive online games on PCs and the expanding use of mobile phones. The number of gamers in East Asia and the Pacific has risen at a CAGR of over 64% due to the ubiquity of smartphones and the increasing societal availability of the Internet. Keyboard-based games and real-time strategy games continue to attract professional gamers, while multi-player online games offer social interaction and pleasure. New game releases, open-source software, and streaming media services cater to potential customers, with technologically advanced smartphones enhancing performance and specialized features. Music, narration, sound effects, and theatrical performances add to the overall experience, making video gaming a thriving profession and a form of recreation and relaxation for shifting demographics. Hence, all such factors will contribute to the growth of the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the dynamic and competitive world of video games, effective marketing strategies are essential for success. Three-dimensional (3D) games and graphics are key components, as indicated by the increasing popularity of 3D gaming consoles and PC games. Social media and influencer marketing are effective channels for reaching a large audience. For instance, Adaptality, a marketing firm, uses artificial intelligence to identify and target gaming influencers for their clients. Aesthetics, such as graphics and sound, are crucial in attracting and retaining players. Consumers prefer games with compelling narratives and engaging gameplay. Commercially successful games like Fortnite and Minecraft have proven this. Consumer preferences and trends, such as cloud gaming and virtual reality, should also be considered in marketing strategies. Companies like Google and Microsoft are investing heavily in these areas. Overall, marketing requires a deep understanding of consumer behavior, trends, and the latest technologies.
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Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.44% |
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Market Growth 2024-2028 |
USD 115.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.41 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 56% |
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Key countries |
US, China, South Korea, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Activision Blizzard Inc., Alphabet Inc., Apple Inc., Aristocrat Leisure Ltd., Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., Enad Global 7 AB, Epic Games Inc., Konami Group Corp., Krafton Inc., Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., Playtika Holding Corp., Roblox Corp., SEGA SAMMY CREATION INC., Sony Group Corp., Take Two Interactive Software Inc., and Tencent Holdings Ltd. |
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Market dynamics |
Parent market growth analysis, Market Forecast, 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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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