Enjoy complimentary customisation on priority with our Enterprise License!
The game engines market size is estimated to grow by USD 2.87 billion at a CAGR of 16.62% between 2022 and 2027. The growth of the market depends on several factors, including the increasing popularity of eSports, the revolutionary improvements in gaming engines, and in-app purchases from freemium customers. Game engines are a framework that helps game developers develop a video game without creating all systems, such as physics, graphics, and AI, from scratch. The engine allows developers to construct games for consoles, desktops, mobile devices, and those working on virtual reality platforms such as HTC Viva, Oculus Rift, and others. Major end-users are the game developers who use game engines to develop games. These engines are developed in-house by software players.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
In the dynamic world of video game development, Game Engines play a pivotal role in bringing ideas to life. The market is a thriving industry, filled with innovative solutions that cater to developers of all levels. Companies like Unity (Unity Technologies), Unreal Engine (Epic Games), and Unigine offer a wide range of features, from simple prototyping tools to complex physics simulations. These engines are essential for creating console-quality games, as well as mobile and web applications. The market is competitive, with each engine striving to offer unique features and services. For instance, Unity's Asset Store and Unreal Engine's Marketplace provide developers with a vast library of pre-built assets and plugins. Additionally, engines like Unigine and CryEngine focus on real-time graphics rendering, offering stunning visuals for modern games. The market continues to evolve, with new engines and updates constantly emerging to meet the ever-changing demands of game development.
The increasing popularity of eSports is driving the market. The eSports tournaments like "The International" are becoming more and more popular due to increased awareness. eSports includes professional players taking part in Multiplayer video games, where they are surrounded by many spectators at a given venue or online platform. Such tournaments are organized in large arenas in various countries, such as Sweden, the US, India, China, and the UK.
Additionally, the market is experiencing significant growth due to the increasing popularity of eSports and online gaming. Esports tournaments, such as The International for League of Legends and Counter-Strike: Global Offensive, attract large audiences on multiple platforms, including PCs, consoles, and mobile devices. These events require advanced game-developing software with capabilities in graphics, physics, collisions, game assets, and game development tasks. Game engines facilitate 3D modeling, animation software, real-time rendering, interactive simulations, and multifaceted development tasks. With the rise of eSports, there is a growing demands that support AR and VR technologies, machine learning, cloud-based services, and blockchain technology. Game development schools offer training in various game engines, such as the RAGE engine, to meet the industry's demands. The game engine market caters to both component and solution segments, providing services for UI & UX design, game development tasks, and real-time rendering. The market includes mobile gaming, gamification, AR, VR, and PC games.
However, as the intellectual property rights of the multiplayer games played in eSports events are owned by gaming software developers, the global market for video game engines is expected to see revenue growth driven by an increase in eSports tournaments. Many enterprises are now entering the eSports arena, as a result of increased interest in such tournaments and to take account of the growing demand for organizing them. The increasing participation of associations such as the International Esports Federation and Global eSports and the rising number of eSports tournaments are expected to fuel the demand for multiplayer game engines, thus driving the revenue growth of the global market during the forecast period.
The growing developments in cross-platform gaming support are a primary trend in the market. The demand for the development of cross-platform support has been created by a rapid growth in gamers using various gaming platforms, such as video game consoles and mobile phones. Cross-platform games allow gamers to play online multiplayer games together, irrespective of their hardware platforms. companies are offering either partially or fully supporting cross-platform compatibility. An increase in the number of mobile phone and tablet users has also led to a shift in vendor offerings. The market shares of gamers who use mobile platforms to play games are high, especially in emerging countries such as China and India, due to the growing popularity of mobile phones and tablets.
Additionally, the market is experiencing significant growth due to the increasing popularity of esports and online gaming. Multiplayer games, particularly in genres like MOBA (League of Legends, Fortnite), have driven the demand for cross-platform compatibility. Game-developing software now supports multiple platforms, including mobile, PCs, and consoles, enabling gamers to play together in real-time. Vendors offer various levels of cross-platform supportability, from partially to fully compatible engines. RAGE engine, Unity, Unreal Engine, and others are leading solutions in this segment. The market also caters to training and education through game development schools and software. Advanced graphics, physics, collisions, game assets, and development tasks are essential components of game engines. Additionally, 3D modeling, animation software, real-time rendering, interactive simulations, and UI & UX design are integral parts of the game development process. Augmented reality (AR) and virtual reality (VR) are emerging trends in the market, along with machine learning, cloud-based services, and blockchain technology. The market is segmented into components, solutions, and services, with the services segment dominating the market due to the growing demand for game development tasks. Mobile gaming is a significant segment, with an increasing number of mobile phone and tablet users. The market also caters to gamification, UI & UX design, and e-sports. Game engines support various platforms, including PCs, consoles, mobile, AR, VR, and UI & UX design tools.
Moreover, companies are successfully enhancing their existing gaming engines to support easy porting from PCs and consoles to mobile screens. Rapid changes in customer preference and vendor offers have been achieved due to constant improvements in the support for gaming across a range of platforms. A game's success will no longer be determined by its quality, but also by the size of a targeted customer group. companies offering cross-platform games, have access to a large customer base and are constantly exploring the untapped potential in the market across the globe, which is subsequently driving their revenue growth during the forecast period.
The infrastructural challenges are major issues impeding the market growth. The main challenges faced by companies in this market include structural problems with information systems, such as the need to provide broadband internet speeds of up to 100 Mbps and low latency for support of a heavy Internet game engine. Such issues are more common across emerging economies, owing to the slow adoption of advanced IT infrastructure. There are a number of problems due to the lack of high-speed Internet connections, such as loss of frame rate and delay in games, which can adversely affect the gaming experience of the users.
Additionally, the market faces significant challenges in providing high-speed and latency-free broadband services for esports and online gaming platforms, particularly in emerging economies. This issue, which can lead to frame rate loss and increased latency, negatively impacts user experience and sales of game engines. The slow progress of 5G technology in countries like India and Brazil further hinders market growth. Game engines are essential software for creating video games, including popular titles like League of Legends and Counter-Strike: Global Offensive, on multiple platforms such as PCs, consoles, and mobile. These engines involve complex graphics, physics, collisions, and game assets, requiring advanced tools like 3D modeling and animation software for real-time rendering, interactive simulations, and multimedia components. Game development tasks also involve UI & UX design, training in game development schools, and the use of advanced technologies like augmented reality (AR), virtual reality (VR), machine learning, cloud-based services, and blockchain technology. The game engine market is segmented into components, solutions, and services, with the services segment offering training, support, and consulting. The market caters to various platforms, including mobile gaming, and incorporates gamification, AR, VR, and UI & UX design.
Furthermore, the size of game engines is increasing with the surging demand for high-resolution displays and high-quality sound, as well as the rising demand for fine detailing in graphics. A major issue for companies, that are prevented from exploring their untapped markets by the lack of cloud infrastructure to support cloud architecture in emerging economies, is that they cannot access these markets. Thus, such factors hinder the market in focus growth during the forecast period.
The market is witnessing robust growth, fueled by the increasing demand for interactive and immersive gaming experiences. Game development software, including physics engine, sound engine, and animation engine, empowers developers to create engaging games with lifelike features. With advancements in artificial intelligence (AI), games are becoming more dynamic and responsive to player actions. Leading companies like Scirra, Tencent Holdings, and Sony Interactive Entertainment are driving innovation in the industry. Mobile gaming, powered by smartphones, is experiencing significant growth, with both 2D and 3D game engine software gaining traction. Esports is emerging as a dominant force, with popular titles like League of Legends and Dota attracting millions of players worldwide. As the market continues to evolve, companies like Unity Software and Epic Games are shaping the future of gaming with cutting-edge technologies for consoles, desktops, and sound.
The market share growth by the action and adventure segment will be significant during the forecast period. The action and adventure segment of the global market will dominate in 2022. As a result of the increasing demand for action and adventure games as well as the introduction of new ones, this market is expected to remain dominant over the forecast period. Action-adventure games are a gaming staple, encompassing a broad range of mechanics, narratives, styling, and high creativity.
Get a glance at the market contribution of various segments View Free PDF Sample
The action and adventure segments show a gradual increase in the market share of USD 524.19 million in 2017 and continued to grow by 2021. The development and introduction of new kinds of adventure and action games have been increasing, driven by players looking for new types of play in order to retain their interest. The growing development of new adventure and action games owing to its increasing interest is expected to increase the demand, which in turn is anticipated to drive the growth of the market in focus during the forecast period.
Based on components, the market has been segmented into solutions and services. The solution segment will account for the largest share of this segment. The solution segment is a crucial component in the global market, the growth is fueled by integrated game engine advancements in game engine technology. Increased popularity for multiuser game applications is being driven by advances in technologies of the gaming engine. The market is witnessing substantial growth, particularly in the solution segment. This expansion is driven by the escalating demand for eSports solutions and advancements in game engine technology. Mobile games, consoles, and PC games all benefit from these integrated improvements. In the eSports industry, Unity for eSports is gaining popularity due to its versatility.
Player profiles and live streaming integration are essential features for eSports enthusiasts. Epic Games' Unreal Engine 5 and Tencent Games' advanced technologies are leading the charge in game engine innovation. Cloud gaming services are also revolutionizing the industry, with Unity Game Engine at the forefront of this trend.These researchers are focusing on building a gaming platform that facilitates the development and modification of graphic and gaming designing and programming applications. Therefore, during the forecast period, the adoption of solutions in the global market is expected to increase.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 32% 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, led by China, South Korea, and Japan, dominated the market in 2022. The surge in PC gaming popularity, fueled by online video games in Southeast Asia and expanding broadband connectivity, drives game development and enterprise growth. Mobile gaming's rise in countries like China, Thailand, Indonesia, and Vietnam, due to broadband penetration and smartphone usage, further boosts demand. Unity for eSports and Unreal Engine 5 cater to the eSports industry, offering player profiles and live streaming integration. Epic Games and Tencent Games lead, while cloud gaming services expand the market's reach. Unity Game Engine supports mobile and console development.
Developments and businesses will be encouraged to develop new games as a result of an increase in demand for PC gaming in Asia Pacific, primarily driven by the growing popularity of online video games in Southeast Asia and increased broadband penetration. The popularity of online games on mobile platforms is increasing, which also leads to a rise in demand for new games. This will encourage developers and enterprises to launch new games, which will increase the demand in the region during the forecast period.
The Market 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 growth 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.
Amazon.com Inc. - The company offers Open 3D Engine.
Appodeal Inc. - The company offers Solar2D Lua game engine, under its subsidiary called Corona Labs Inc.
Carnegie Mellon University - The company offers Panda3D engine through its team called Panda3D development team.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing dynamic growth, driven by key components such as physics engine, sound engine, and animation engine, which form the backbone of immersive gaming experiences. Leading gaming companies like SQUARE ENIX and NetEase are leveraging advanced 3D graphics and sophisticated scripting capabilities to create visually stunning and interactive worlds. With the rise of online gaming, robust networking infrastructure is essential for seamless multiplayer experiences. Additionally, memory management and cloud gaming technologies are revolutionizing the way games are played, enabling PC, console, and TV games to be accessed from anywhere. Companies like Porsche and Chukong Tech are pushing the boundaries of innovation in the industry, while platforms like Garage Games provide tools for indie developers to create their own gaming masterpieces.
The market is witnessing significant growth driven by the rising demand for High-quality video games and advancements in Game-developing software. Frameworks play a crucial role in enabling developers to create immersive Virtual reality experiences and realistic Architectural visualization. Furthermore, there is a growing focus on Training simulations and Game development schools to nurture talent and drive innovation in the industry. Grand Theft Auto V is a prime example of a game developed using the RAGE engine, showcasing the capabilities of modern game engines. Emerging technologies like Augmented reality, Machine learning, and Blockchain technology are being integrated into these engines to enhance gameplay and enable new experiences. The services segment of the market is expanding with the adoption of Cloud-based services for game development and deployment. Different segments like the 3D game engine segment and the 4D and 5D game engines are catering to specific needs, while the Mobile segment and Gaming console platform segment are driving growth in the market. Popular games like offered by brands like PlayStation, Xbox, and Nintendo including League of Legends, Dota 2, and Counter-Strike the global Offensive are showcasing the capabilities of modern game engines in delivering engaging online gaming experiences.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.62% |
Market growth 2023-2027 |
USD 2,877.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.22 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 32% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Appodeal Inc., Carnegie Mellon University, Carsten Fuchs Software, Crytek GmbH, Degica Co. Ltd., GameSalad Inc., GDevelop Ltd., Godot Engine, Leadwerks Software, LF Projects LLC, Marmalade Game Studio Ltd., Microsoft Corp., Remedy Entertainment Plc, Silicon Studio Corp., Torque Game Engine, UNIGINE Holding S.a.r.l, Unity Software Inc., YYG Property, and Electronic Arts Inc. |
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, and Market condition analysis for the forecast period. |
Customization purview |
If our 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 Genre
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
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.