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The global gaming software market size is estimated to grow by USD 50.1 million, at a CAGR of 6.07% between 2023 and 2028. Market growth hinges on several factors, including groundbreaking advancements in gaming engines, expanding developments in cross-platform gaming support, and the revenue generated from in-app purchases by freemium customers. These factors collectively drive innovation and profitability within the gaming industry. Revolutionary improvements in gaming engines allow for more immersive and visually captivating gaming experiences, attracting and retaining players. Furthermore, the increasing availability of cross-platform gaming support enables gamers to access their favorite titles across various devices, expanding market reach and player engagement. Additionally, in-app purchases from freemium customers contribute significantly to revenue streams, as players opt to enhance their gaming experiences through virtual goods and additional content. As these trends continue to evolve, they fuel market growth and shape the future of gaming.
The market research and growth report forecasts include detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Activision Blizzard Inc., Aristocrat Leisure Ltd., AT and T Inc., Bandai Namco Holdings Inc., Capcom Co. Ltd., Daybreak Game Co. LLC, Electronic Arts Inc., Epic Games Inc., Konami Group Corp., Krafton Inc., Microsoft Corp., Nintendo Co. Ltd., Playtika Holding Corp., Roblox Corp., Sega Sammy Holdings Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Unity Software Inc.
The gaming software industry thrives on innovation, offering a vast array of experiences across various platforms. From traditional computer programs to immersive virtual reality (VR) and augmented reality (AR) environments, gaming software encompasses a wide spectrum. Video games span from complex console titles to casual browser games, catering to diverse preferences. With the advent of cloud gamification and the ubiquity of internet platforms, gaming has become more accessible than ever. Game engines and graphics software empower developers to create stunning visuals and immersive worlds, while multiplayer services enhance social interaction. Mobile gaming continues to rise, driven by smartphones and tablets, supported by robust development tools and online platforms. In this dynamic landscape, the gaming software market remains at the forefront of technological advancement, captivating video gamers worldwide. Our researchers analyzed the data with 2023 as the base year, along with the market trends and analysis, drivers, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing developments in cross-platform gaming support is a key factor driving the growth of the market. A rapid increase in the number of gamers using multiple gaming platforms, ranging from gaming consoles to mobile phones, has created significant demand for the development of cross-platform supportability. Cross-platform games are allowing gamers to play online multiplayer games together, irrespective of their hardware platforms.
Additionally, the growing popularity of online multiplayer games, specifically in the MOBA genre (such as PUBG from Tencent Games, Fortnite from Epic Games, and Call of Duty from Activision Blizzard), has led to many developments in online multiplayer cross-platform gaming software among vendors. Vendors are offering either partially or fully supporting cross-platform compatibility.
Integration with social media platforms is a key trend influencing the growth of the market. The market is witnessing a significant trend with the rise of instant gaming software on social media platforms. Global users are spending more time on these platforms, creating a vast customer base for vendors. In 2018, daily social media usage increased by 63%, reaching 2-2.5 hours on average.
Moreover, capitalizing on this, vendors are creating and releasing instant games in popular genres like arcade and strategy on platforms such as Facebook, Steam, WeChat, Anook, and Reddit. Collaborations with social media giants are also on the rise. For instance, Ubisoft partnered with WeChat to launch games, while Facebook opened its instant game platform to all developers. This expansion of instant gaming software on social media is propelling market growth and revenue.
Growth in online hacking and data breaches is a major challenge hindering the growth of the market. The surge in adopting online gaming software has made gamers vulnerable to heightened cybercrime risks. These gamers use interconnected platforms with inadequate security measures, providing easy entry points for hackers to access personal data. Some platforms even mandate saving credit/debit card info for in-game purchases, which hackers exploit using Trojans and ransomware for financial fraud.
Further, cybercriminals view gaming as a lucrative avenue for stealing and selling data or coercing users into sharing banking info through social engineering. High-profile platforms like Sony PlayStation Network, Microsoft Xbox Live, and Steam are prime targets. Globally, gamers have faced numerous credential-stuffing attacks, hampering online transactions and impacting vendors' revenues. Moreover, games often require social media access, demanding stringent data privacy adherence from vendors. Breaches can erode trust and operational efficiency, posing challenges to market growth.
The market share growth by the mobile games segment will be significant during the forecast period. Mobile games include gaming software developed for mobile phones and tablets. The availability of low-cost, large-screen mobile phones with high display resolution and the growing access to high-speed internet through 5G technology in countries such as China, the US, Germany, and the UK is driving the adoption of mobile devices as a gaming platform.
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The mobile games segment started at USD 52.60 million in 2018. Increased profits in the global mobile gaming market, coupled with a rising number of casual and dedicated gamers, spurred numerous product launches. Many of these releases are free-to-play games with optional in-app purchases, now major revenue sources. Gamers often opt for in-app purchases to customize characters or access premium features. Flagship games, like Call of Duty: Mobile by Activision Blizzard, quickly gained traction, amassing over 35 million downloads within four days of launch in October 2019. Successful launches prompted vendors to port popular console and PC games to mobile platforms using advanced gaming engines, fueling further growth in this segment.
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APAC is estimated to contribute 43% 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. APAC dominates the gaming software market led by China, Japan, and India, hosting the largest mobile gamer population. Smartphone proliferation and high-speed internet usage drive mobile gaming growth, supported by key players like Nintendo, Tencent, and Sony. Japan, South Korea, and China lead in online gamers due to strong internet infrastructure. Emerging Asian countries, including India, offer growth opportunities with rising smartphone use and impending 5G. PC and console-based AAA games thrive, fueled by higher incomes. China's lifted console ban spurs gaming growth, while Australia and New Zealand embrace freemium games and in-app purchases. APAC's rise continues with expanding smartphones and 5G.
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.
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a dynamic landscape, constantly evolving to meet the demands of a diverse and enthusiastic audience. From traditional personal computers to cutting-edge VR headsets, gaming experiences span a vast spectrum. Competitive gaming and e-sports have surged in popularity, with platforms like Faceit and ESL hosting major tournaments in games like Counter-Strike, Dota 2, and League of Legends. Streamers on platforms such as YouTube and Twitch have become influential figures, shaping trends and driving engagement. Cloud gaming services like Playstation Vue and Oculus Publishing offer seamless experiences across devices, while tablet games and mobile gaming software cater to on-the-go entertainment. Behind the scenes, game developers harness the power of high-definition graphics and optimize multiplayer scenarios for immersive gameplay. With advancements in graphics cards, processors, and memory, the gaming software market continues to push boundaries and captivate audiences worldwide.
Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.07% |
Market growth 2024-2028 |
USD 50.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.75 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Activision Blizzard Inc., Aristocrat Leisure Ltd., AT and T Inc., Bandai Namco Holdings Inc., Capcom Co. Ltd., Daybreak Game Co. LLC, Electronic Arts Inc., Epic Games Inc., Konami Group Corp., Krafton Inc., Microsoft Corp., Nintendo Co. Ltd., Playtika Holding Corp., Roblox Corp., Sega Sammy Holdings Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Unity Software Inc. |
Market dynamics |
Parent market analysis, 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 forecast period |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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 Revenue Stream
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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