Enjoy complimentary customisation on priority with our Enterprise License!
The global gaming console market size is estimated to grow by USD 18.58 billion at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth, driven by the introduction of next-generation consoles boasting enhanced features. These advanced systems cater to an increasingly diverse gaming population, offering immersive experiences through superior graphics, faster processing speeds, and expanded connectivity options. Technological innovations, such as virtual and augmented reality capabilities, haptic feedback, and cloud gaming, further fuel market expansion. As a result, the gaming industry continues to evolve, providing consumers with more engaging and interactive entertainment solutions.
To know more about the market research report, Download Sample PDF
The market is currently dominated by key players such as PlayStation 4, PlayStation 4 Pro, and PlayStation Slim from Sony, alongside Xbox One S by Microsoft. Emerging contenders like ZarkCentral and Verizon are adding diversity. Cutting-edge VR experiences are evolving with devices like Meta Quest 2 and PlayStation VR2. Leading developers such as Naughty Dog and Guerrilla Games continually redefine gaming with their innovative titles. Nintendo's Nintendo EAD and Retro Studios maintain a strong presence with their iconic franchises. Streaming services like Prime Video and social media platforms such as Twitter integrate seamlessly, enhancing gaming options. This dynamic market not only offers immersive gaming but also integrates videos, audio, and music into home consoles, shaping the future of interactive entertainment.
Significant Market Trends and Analysis
The increasing use of gaming consoles for non-gaming activities is one of the major market trends shaping the market growth. The flagship product of Microsoft, Xbox, is among the most-sold consoles in the world. Microsoft has partnered with numerous entertainment apps such as Netflix, Hulu Plus, and HBO Go. However, customers will need to buy a premium subscription to avail of these apps.
The growing prominence of these apps outside the gaming console segment has made the company remove its premium subscription for these apps. Since then, there has been a rapid increase in Netflix viewership via Xbox. In 2020, most of the Xbox-related activities were through streaming on Netflix and Amazon. Non-gaming-related activities through gaming consoles are expected to increase during the market forecasting period.
Diversifying gaming population is a key driver boosting the market growth. One of the major factors influencing the growth of the global gaming console market is the paradigm shift in the demographics of the audience. The market mainly consists of teenagers, but the number of adults using gaming consoles is currently increasing. The average age of gamers increased from 18 years (in 2008) to 27 years (in 2016) and further to 34 years (in 2021). Another main factor that drives the market is the increase in the number of female gamers. For instance, about 45% of gamers in the US are women.
The increase in the diversity of end-users has increased the target audience of gaming console vendors. Also, the diversifying gaming population has encouraged vendors to change their marketing strategies. The penetration of gaming-specific peripherals is rapidly increasing, which is an indication of the changing lifestyle of gamers. Thus, the increasing population of gamers is expected to propel the growth of the global market during the market growth and forecasting period.
The increasing influx of casual gamers is a key challenge hindering the market. The use of PCs has changed drastically in the last ten years. PC gaming was considered an enthusiast-driven gaming market. This includes the people who spend a lot of time and money on buying PCs and the required games.
However, this phenomenon has significantly changed as PC gaming has become far less technical, which makes it more accessible to casual gamers. Buying a PC became affordable only after 2000. Before 2000, people used to spend a lot of time building their own PC. After 2000, PC gaming became popular as gamers could easily download a file and start playing. PC gaming is considered a direct substitute for console gaming, and with PC gaming becoming more accessible to the gaming population, it is considered a significant threat to the market research and growth.
The TV consoles segment is estimated to witness significant growth during the forecast period. The TV gaming console segment is the leading segment in the global gaming console market. The technological advances are the best in the industry, with the last generation of Sony and Microsoft gaming console system with 8 GB RAM, which is compatible with Blu-ray video, HDMI, and digital outputs.
Get a glance at the market contribution of various segments View the PDF Sample
The TV consoles segment was the largest segment and was valued at USD 28 billion in 2018. One of the major challenges the segment is facing is the integration with E-sports. The gamers are earning money on par with other international sportspeople from games such as soccer, cricket, etc. The E-sports market is expected to grow to about USD 2.5 billion by 2025. With the increasing number of gamers considering this as a career option, the integration of TV console games with E-sports will be essential for the growth of the global TV gaming console market. The market is expected to witness high demand during the market growth analysis period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 51% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Asia-Pacific (APAC) region, particularly China, is a gaming powerhouse, contributing 25% of the global video game industry. China boasts high gaming participation rates, with 97% of 18-24-year-olds, and 90% of those aged 25-35 and 31-35 actively gaming. eSports are gaining ground in developing APAC countries like Taiwan, Malaysia, and Singapore. Major digital game companies, including China's Tencent and GungHo Online Entertainment, shape the gaming landscape. Japan leads in gaming technology innovation, home to influential console vendors like Sony and Nintendo.
Moreover, China banned gaming consoles in 2000 but lifted the ban in 2014, making China the largest gaming market in APAC since 2015. China has over 700 million internet users, boosting online gaming. In 2022, China, Japan, Australia, and South Korea were key contributors to the global video gaming market, generating over 40% of global revenue. Traditional PC gaming has been supplemented by the popularity of next-gen gaming consoles. Smartphone shipments are at their highest in the region, fueling the rise of smartphone gaming and diminishing demand for handheld gaming consoles.
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- The company offers gaming console such as Xbox Series.
Technavio has a detailed analysis of the competitive landscape of the market and information about 15 market players, 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 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
You may also be interested in:
3D Gaming Consoles Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
Gaming Graphic Processing Unit (GPU) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, South Korea, Germany, Japan - Size and Forecast
Subscription Based Gaming Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, South Korea, Germany - Size and Forecast
The gaming landscape is evolving rapidly with a convergence of video game consoles like Wii U, RetroN 5, and Leap TV catering to diverse preferences. They compete with mobile phones and personal computers in terms of graphics quality and processing capabilities. Cloud infrastructure and platforms such as Google Stadia and Omniverse are transforming gaming experiences, supported by companies like NetEase, Tencent Games, and Ubisoft. Quantic Dream leads in narrative-driven games, while Logitech G enhances gaming peripherals. The rise of Windows 11 fosters gaming software development and cloud support, blurring lines between console game makers and mobile gaming. This fusion defines modern gaming culture as content and technology continue to shape the future of interactive entertainment.
Industry Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 18.58 Billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, South Korea, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amkette, Analogue Enterprises Ltd., Atari Inc., Bluestack Systems Inc., Hyperkin Inc., Intellivision Entertainment LLC, Logitech International SA, Mad Catz Global Ltd., Mattel Inc., Microsoft Corp., Nintendo Co. Ltd., NVIDIA Corp., PlayJam Ltd., PLAYMAJI Inc., Razer Inc., Sega Corp., SNK Corp., Sony Group Corp., Tommo Inc., and Valve Corp. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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.
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 Usage
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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.