Overview of the global cloud gaming market
Technavio’s market research analyst predicts the global cloud gaming market to grow exponentially at a CAGR of more than 29% during the forecast period. Reduction in the time for accessing games and cost of owning games is the primary growth driver for this market. Unlike gaming consoles, cloud gaming does not require physical copies, updates, and backups of games as they are stored on a cloud platform. This substantially decreases the overall cost of gaming. Also, cloud gaming does not require downloading, and can be played almost instantly.
The increase in social media and mobile gaming audience is another factor supporting market growth during the forecast period. Cloud gaming services have the potential to reach non-core gamers that play games on social media and mobile devices for its cost-effective price structure. It also offers access to games without any restrictions on time or location. Factors such as the widespread availability of high-speed internet connectivity and the growing penetration of tablets and smartphones will spur the prospects for market growth until 2020.
Geographical segmentation of the cloud gaming market
In 2015, the Americas dominated the global cloud gaming market and accounted for a market share of more than 54% due to the high level of smartphone and tablet penetration in the region. In the Americas, the high spending capabilities of individuals on leisure activities, such as gaming, will also aid in the growth of this market during the forecast period.
Competitive landscape and key vendors
The global cloud gaming market is highly competitive because of the presence of some prominent vendors. Intense competition, rapid advances in technology,
Market outlook of the global gaming consoles market
Technavio’s research analyst predicts the global gaming console market to decline at a CAGR of around 13% during the forecast period. The gaming console market is facing a numerous challenges, noteworthy among them being a shift from console gaming towards PC gaming, online gaming, mobile gaming and other alternative gaming platforms. This mainly due to the easy availability of video games along with high penetration of PCs globally. The popularity of smartphones and tablets has revolutionized the global gaming market with an increasing number of consumers preferring such devices over gaming consoles.
Another major deterrent to market growth is the high cost of gaming console hardware and peripherals when compared to other gaming platforms. The gaming console market is heavily influenced by the launch of next generation gaming consoles. With the next generation of gaming consoles likely to be launched around 2019-2020, the market is expected to witness growth henceforth.
Segmentation of global gaming console market by type
- TV gaming consoles
- Handheld gaming consoles
TV gaming consoles are currently the dominant segment accounting for approximately 82% of the global gaming console market (as of 2015) while handheld gaming consoles account for the remaining share of the market. TV gaming consoles offer gamers a superior gaming experience owing to the technological advancements in RAM and GPU, which have been incorporated in the consoles offered by prominent vendors. Besides, the compatibility of TV gaming consoles with Blu-ray video, HDMI and digital output enhances their overall experience.
Geographical segmentation and analysis of global gaming console market
Outlook of the casino gaming market in the US
Technavio’s market research analyst predicts the casino gaming market in the US to grow at a CAGR of around 5% during the forecast period. Recent growth observed in the online gambling environment is the primary growth driver for this market. Online gambling was not legal in the US, but since 2013, a number of states such as Nevada, New Jersey, and Delaware have legalized online gambling. The legalization of online gambling has further enhanced the popularity of online casinos as many people have now gained access to such portals.
Increasing tourism is another factor contributing towards the growth of this market. Casinos across the US have the reputation of being some of the most glamorous and popular tourist attractions. Consequently, many states in the US have started legalizing casinos to attract tourists. Additionally, since the US is one of the few countries that allow advertisements for casinos, the number of tourists visiting casinos in the country is expected to increase rapidly over the next few years.
Competitive landscape and key vendors
The major casinos in the US are located in Las Vegas, Nevada, Atlantic City, and New Jersey. The legalization of casinos across the US is expected to further enhance this market’s growth potential. While Pennsylvania has legalized table games like poker and blackjack at casinos in a move to generate higher revenues, the Delaware Senate has also passed a bill to allow table games. Some of the major casino companies are also bidding to build casinos in other states, which in turn will result in market growth during the forecast period.
Key leading vendors in the market are -
- Boyd Gaming
- Caesars Entertainment
- Las Vegas Sands
- MGM Resorts
Market outlook of the global gamification market
Gamification is the process of implementing game mechanics into a non-game context to drive user engagement. Points, badges, leader boards, challenges, and rewards are some examples of game mechanics. This market is expected to witness exponential growth during the forecast period and is envisaged to post a profound market growth rate of more than 48% by 2019. The growing need to improve customer interaction is a significant factor that is expected to foster market growth during the forecast period.
Technavio market research analysts envisage the Americas to account for more than 52% of the total market share by 2019. High market share of this region can be attributed to its high adoption rate of gamification applications. As gamification allows companies to gain a competitive edge over their rivals, an increase in their investments will augment market growth during the forecast period.
Application-based segmentation of the gamification market
- Consumer-driven applications
- Enterprise-driven applications
In this market research report, Technavio’s analyst has estimated the enterprise-driven applications segment to account for approximately 68% of the total revenue generated by this market during the forecast period. The increased awareness of gamification products and benefits is a critical factor that accounts for this segment’s high revenue generating capacity during the forecast period.
End-user segmentation of the gamification market
- Media and publishing
- Consumer goods
The enterprises segment is envisaged to account for the largest market share during the forecast period. This segment is expected to account for close to 30% of the total
Market outlook of the global e-sports market
Technavio’s market research analyst has estimated the global market for e-sports to post a profound CAGR of more than 36% by 2019. High growth rate of this market during the forecast period can be attributed to factors such as the increasing number of sponsors and low entry barriers for gamers.
In this market research report, analysts estimate the Americas to dominate the global market for e-sports during the forecast period followed by the APAC and the EMEA regions. The rising popularity of e-sports leagues in the Americas is expected to result in its market share of nearly 43% by 2019.
Genre-based segmentation of the e-sports market
The multiplayer online battle arena (MOBA) segment is envisaged to exhibit the fastest market growth rate during the forecast period. This segment currently account for nearly 60% of the total market share, but is expected to surpass 70% by 2019 owing to its high fan base and team play element.
Segmentation by revenue and analysis of the e-sports market
- E-sports advertising
- Prize pool
- Ticket sales
Technavio’s market research analyst has estimated the e-sports advertising sector to be the largest market segment during the forecast period. This segment is expected to generate a revenue of more than USD 154 million by 2019 as it provides a platform to expand the game's touchpoints and engage users in a better way with their favorite characters.
Competitive landscape and key vendors
Market outlook of the global MMO games market
Massively multiplayer online (MMO) games are designed to be played on different network-capable platforms like video game consoles, smartphones, or PCs. Rapid technological advancements that have led to the emergence of HD displays and audio devices having HDMI wireless network capabilities are some of the major growth promoting factors in this market during the forecast period. Also, the launch of next generation gaming consoles is expected to positively spur market growth, resulting in its healthy CAGR of more than 8% by 2019.
The advent of digital downloading is a significant factor that is expected to drive market growth during the forecast period. The latest gaming consoles are equipped with Wi-Fi, network connectivity, and HDD, which allows gamers to directly download games into their console. This removes the hassle of visiting a store to purchase physical discs, which are prone to damage by wear and tear.
Revenue-based segmentation of the global MMO games market
- Paid games
- Free-to-play games
In this market research report, analysts estimate the free-to-play games segment to generate the highest revenue during the forecast period. Growing popularity of this segment can be attributed to the elimination of entry barriers, which allows developers to penetrate the market in developing countries where owning a TV console is a luxury.
Geographical segmentation of the MMO games market
Geographically, the APAC region is estimated to be the highest revenue-generating segment during the forecast period. High
The global gaming industry continues to grow rapidly. This is mainly due to increased globalization of the games market, which has resulted in converged platforms and business models across different regions. The relentless market momentum in Japan, China, South Korea, and Taiwan is because the popularity of mobile gaming has exceeded all expectations.
Some of Technavio’s coverage in this industry includes gaming consoles, handheld consoles, PC games, web games, and massively multiplayer online (MMO) games.