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The Global Video Game market size is projected to reach a value of USD 89.38 billion with a CAGR of 8.1% between 2022 and 2027. The growth of the market depends on several factors, including the rising penetration of smartphones and improving internet access, the evolution of the PC and console gaming market, and the increasing popularity of eSports tournaments.
This Video Game Market analysis report extensively covers market segmentation by platform (mobile devices, consoles, and computing devices), type (offline and online), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising penetration of smartphones and improving internet access are notably driving the market growth, although factors such as adverse health effects of gaming may imepde the market growth. 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 the Video Game Market share. The proliferation of the mobile gaming industry is being fueled by the increase in demand for smartphones in developing countries like China, India, and Mexico due to the accessibility of reasonably priced smartphones. As more high-end smartphones become available, particularly in developing countries like China and India, the number of mobile gamers will also increase. This is mainly because when large-screen mobile devices with high display resolutions are used for gaming, the user experience is improved.
Additionally, improvements in access to high-speed Internet have fueled the growth of the global market. The World Bank Group estimates that 4.32 billion people worldwide will have mobile internet subscriptions in 2021. In order to provide online games and profit from the mobile gaming phenomenon, many vendors, including Gameloft and Rovio Entertainment, have also entered the mobile gaming space. Hence, these factors will drive the growth of the global market during the forecast period.
The rise in strategic alliances and acquisitions is an emerging trend in market growth. Collaboration among stakeholders, such as that gaming solution providers, gaming content creators, and other gaming platform providers, enhances product offerings and promotes the distribution of games worldwide.
For example, Peak Games and Rollic Games, two well-known developers with offices in Istanbul, were acquired by Zynga Inc. for USD 1.8 billion and USD 180 billion, respectively, in June 2020 (for 80% of the company; the remaining 20% will be acquired over the following three years). Similarly, in order to expand its platform for racing video games and in order to release a new racing game every year, Electronic Arts Inc. acquired Codemasters, a platform for racing video games, in February 2021. Formula 1, DIRT, Project CARS, and GRID were among the existing Codemasters franchises that were merged into EA's Need for Speed, Real Racing, and Burnout game libraries. Hence, vendors will be able to increase their customer base and expand their geographic presence with the aid of strategic partnerships and acquisitions. Therefore, such factors will drive the growth of the global market during the forecast period.
The adverse health effects of gaming are major challenges impeding the market growth. Currently, gaming addiction is a widespread issue. People often become physically inactive due to this addiction, which over time, leaves them more susceptible to a number of health problems like carpal tunnel syndrome, headaches and migraines, and sleep problems. Furthermore, students and young adults are more likely than not to develop chronic back pain because they sit for long periods of time while playing video games.
Long video game sessions can result in unhealthy eating patterns, which is a major contributor to the rise in childhood obesity. The rise in childhood obesity may be attributed to a variety of factors, such as genetics, a lack of exercise, poor eating habits, hormonal problems, or a combination of these factors. As a result, many players are making it a point to set time limits. Hence, video game participation is being restricted, which will hinder market growth during the forecast period.
The market share growth by the mobile devices segment will be significant during the forecast period. As more consumers use their smartphones and tablets as their main gaming platforms, the mobile devices segment, which accounted for the largest share of the global market in 2022, is expected to grow further. Compared to console or PC games, mobile games are typically simpler and smaller in scale, and they are made to be played in quick bursts. They, therefore, appeal to a wider demographic, including casual gamers looking for quick and simple entertainment on the go.
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The mobile devices segment was valued at USD 68.73 billion in 2017 and continued to grow until 2021. Mobile games can be downloaded from app stores like the Apple App Store or Google Play, making it relatively simple to distribute them. The variety of games available is another important benefit of mobile gaming. There are many different types of video games available on the global market, from simple multiplayer games to casual puzzle games. Mobile gaming appeals to a wide range of consumers because there are games for all ages and interests. Additionally, the processors and graphics capabilities of mobile devices keep getting better, enabling games with higher visual fidelity. Furthermore, in rural areas, access to the Internet is scarce. As a result, mobile game developers are releasing games that can be downloaded and played offline. The adoption of mobile games will significantly increase as these games become more widely available, particularly in rural areas. 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 49% 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 was the largest market for video games in 2021. The market potential of countries like China, Thailand, Indonesia, and Vietnam is expanding due to the growing use of smartphones and the penetration of the Internet. According to the World Bank Group, internet and smartphone penetration in East Asia and the Pacific increased at a compound annual growth rate (CAGR) of more than 64% in 2021. As a result, more people are using mobile devices to play online games, which is increasing the revenue generated by the video game industry.
Additionally, another factor influencing the market's growth is the surge in strategic alliances and acquisitions by suppliers, supply chain service providers, and providers of gaming content. For instance, in order to benefit from best-selling games like Luigi's Mansion, Nintendo acquired Canadian gaming studio Monolith Soft in January 2021. Hence, all such factors will contribute to the growth of the market in APAC during the forecast period.
In 2020, COVID-19 positively impacted the market growth in APAC. Owing to the lockdowns imposed in all the APAC nations, the movement of people was restricted, and they were compelled to stay at home. This led to a demand for leisure activities like gaming. As a result, video game activities became more popular in 2021. This led to an increase in the number of active users on online gaming platforms such as Steam and Tencent Gaming Buddy. Additionally, the demand for mobile games that can be played on smartphones and tablets has increased as mobile gaming has also become extremely popular in APAC. Hence, such factors will fuel the growth of the market in the region during the forecast period.
Vendors 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 key offerings of the company include video games such as Wild Hearts, Deas space, and NFS Unbound.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The video game 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.
Video Game Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
Market growth 2023-2027 |
USD 89.38 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.59 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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. |
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, 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. |
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