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The global online gaming market size is estimated to grow by USD 75.2 billion, at a CAGR of 14.55% between 2023 and 2028. The online gaming market growth depends on several factors such as the rising popularity of e-sports, the increasing number of strategic partnerships and acquisitions between gaming companies, and the cost savings and quick onboarding of online games. Some of the key companies profiled in this report are Alphabet Inc., Apple Inc., ArkGames, Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., GREE Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., NEXON Co Ltd., Nintendo Co. Ltd., PopReach Corp., Sega Corp., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Zeptolab UK Ltd. The market analysis and report provide market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the segments.
The action segment is estimated to witness significant growth during the market forecast period. Action games are packed with thrills, challenges, and engaging stories that appeal to a wide variety of gamers. One of the main categories within the action game segment is based on the gameplay dynamics. This can be classified into categories like first-person shooter (FPS), third-person shooter (TPS), and melee combat games. Each of these subcategories has its own audience with different preferences.
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The action segment was the largest segment and was valued at USD 12.66 billion in 2018. Further, the thematic element within the action games is driving the growth of the action games segment. Some players are drawn to action games with military themes, like Battlefield, while others are drawn to fantasy worlds like Dark Souls or sci-fi environments like Destiny. These thematic differences let developers and marketers target players based on their interests. Hence, such factors under the action segment will fuel the growth of the global market during the forecast period.
The personal computer (PC) gaming segment is one of the largest segments in the global market, and it has a passionate and devoted user base. The versatility of the platform, the power of the hardware, and the large number of games available on the platform all contribute to the popularity of PC gaming. Further, some of the factors that have contributed to the expansion of the PC segment within the global market are exclusive titles, peripherals, and a modding community that enables players to customize and improve their gaming experience. Such factors are expected to drive the growth of the PC segment of the global market during the forecast period.
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APAC is estimated to contribute 44% 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. China, South Korea, and Japan were the major contributors of revenue to the market in the APAC region. In the same year, APAC was also the leading market for online gaming on PCs, owing to the popularity of online video games in Southeast Asia and the expansion of broadband connectivity. The market in APAC will grow at a high CAGR during the forecast period, owing to the expansion of the 5G network and the gradual market penetration by key market players.
Additionally, APAC is considered to be the hub of professional gamers. The increasing penetration of e-sports in developing countries, such as Taiwan, Malaysia, and Singapore, will contribute to the growth of e-sports in APAC. Some of the major digital game companies operating in this region are China-based Tencent and GungHo Online Entertainment. Hence, such factors are expected to drive market growth in this region during the forecast period.
In the global market, robust revenue growth is driven by players across various platforms including esports, mobile, console, and PC. With the rise of streaming and virtual reality, the online multiplayer gaming industry experiences continuous market trends and fierce competition. Monetization strategies through microtransactions, subscriptions, and fostering a strong community are essential for global analysis and sustaining market growth. Our researchers analyzed the data with 2022 as the base year, along with the market growth and trends, drivers, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surge in esports engagement drives growth within the multiplayer gaming industry. Events like the League of Legends World Championship and FIFA Interactive World Cup attract massive audiences across online streaming platforms. These tournaments serve as focal points for gamers worldwide, participating in competitive gaming across various platforms such as mobile, console, and PC. With the rise of virtual reality and the proliferation of online streaming, the gaming community experiences ongoing market trends and fierce competition. Effective monetization strategies, including microtransactions, play a pivotal role in shaping the future landscape of the industry, fostering sustained growth and community engagement.
Growth in free-to-play model is the primary trend shaping market growth. Aligning with market trends and analysis, the free-to-play model, also called a freemium model, provides an opportunity for gaming service providers to promote their games. This model permits users to play games in exchange for virtual goods and currencies. Virtual currencies are used to buy virtual goods through microtransactions in games. Virtual goods include different avatars. Moreover, gaming service providers can monetize their services by providing access to many freemium games via social media and mobile platforms. This helps the service providers to increase their revenues, thereby driving market growth during the forecast period.
Increasing the risk of cybercrime through online gaming is a challenge that affects market growth. As video games are increasingly available online via PlayStation Network, Xbox Live, or some other platform, cybercriminals are finding ways to exploit the users in the gaming community. Cybercriminals may try to chat with online gamers and coerce them to give information about their banking accounts and gaming accounts to gather information related to credit and debit cards, which are saved as cookies. Besides, gold-farming is when cybercriminals use botnets to generate in-game assets such as gold, coins, or gems, which they try to sell to other players at a discounted rate. Thus, such a threat can negatively impact the growth of the market during the forecast period.
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 Global Online Gaming Market is fueled by the popularity of diverse games like Minecraft and the widespread use of mobile devices for accessing 3D games. While gaming offers entertainment, concerns about addiction prompt initiatives like those by The Recovery Village to address such issues. Moreover, the emergence of cryptocurrency, Non-fungible tokens (NFTs), and Blockchain technology has revolutionized in-game economies and ownership. With a wide array of genres including puzzle, adventure, and arcade, online gaming caters to various player types, from serious gamers to social gamers. As technology advances, smartphones and internet accessibility enable broader consumer reach, making mobile games a dominant force alongside traditional consoles. Analyzing gaming statistics, the market continues to expand with evolving technologies and innovative gaming platforms catering to the demands of the global gaming community.
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Online Gaming Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.55% |
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Market Growth 2024-2028 |
USD 75.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.56 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Activision Blizzard Inc., Alphabet Inc., Apple Inc., ArkGames, Bandai Namco Holdings Inc., Capcom Co. Ltd., Electronic Arts Inc., GREE Inc., GungHo Online Entertainment Inc., Microsoft Corp., NetEase Inc., NEXON Co Ltd., Nintendo Co. Ltd., PopReach Corp., Sega Corp., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Zeptolab UK Ltd. |
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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. |
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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 Platform
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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