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The online gaming market share is expected to increase by USD 46.59 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 12.27%.
The report extensively covers online gaming market segmentation by the following:
The online gaming market report offers information on several market vendors, including Activision Blizzard Inc., Alphabet Inc., Apple Inc., ArkGames, BANDAI NAMCO ENTERTAINMENT EUROPE S.A.S., Capcom Co. Ltd., Electronic Arts Inc., GREE Inc., Microsoft Corp., NetEase Inc., NEXON America Inc., Nintendo Co. Ltd., PopReach Corp., Riot Games Inc., Sega Corp, Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., Ubisoft Entertainment, and ZeptoLab UK Ltd. among others.
This online gaming market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.
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The rising popularity of e-sports is notably driving the online gaming market growth, although factors such as infrastructural requirements may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the interactive home entertainment industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Online Gaming Market Driver
One of the key online gaming market driver fueling market growth is the rising popularity of e-sports. The League of Legends World Championship and Federation Internationale de Football Association (FIFA) Interactive World Cup are some of the e-sports tournaments that provide live broadcasts of the competitions. E-sports tournaments attract numerous people across the world to participate in video game competitions. They also attract a large audience that watches video game competitions live over the web. Each country has its association that organizes tournaments. Many people across the world watch those tournaments through online streaming. For instance, the League of Legends World Championship Finals had 43 million viewers, and 31 million viewers watched the NBA final game. With the rising popularity of e-sports, more vendors are expected to offer e-sports services, which will drive the growth of the global online gaming market during the forecast period.
Key Online Gaming Market Trend
The growth in the free-to-play model is an online gaming market trend that is expected to have a positive impact in the coming years. The free-to-play model, also called a freemium model, provides an opportunity for gaming service providers to promote their games. This model allows 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. In some instances, users spend real money to purchase virtual products, such as coins, magic wands, houses, guns, and swords, in video games. Freemium is the most popular and productive business model in the current era of digital services. Gaming service providers can monetize their services by providing access to many freemium games via social media and mobile platforms. This helps online gaming service providers to increase their revenues, thereby driving the growth of the global online gaming market during the forecast period.
Key Online Gaming Market Challenge
The infrastructural requirements will be a challenge for the online gaming market during the forecast period. The adoption of online gaming in developing economies would be a challenge due to the lack of fast and reliable Internet connections. Internet service providers do not find it financially viable to expand into rural areas. With infrastructure such as 5G and broadband largely inaccessible to people in rural areas, it is difficult to adopt cloud gaming services, thereby hampering the growth of the market during the forecast period. In the absence of a high-speed Internet connection, issues such as loss of frames in games and latency are expected. Latency and frame loss have the potential to render online multiplayer games unplayable. Under-penetration of 5G is estimated to pose a significant hindrance to the growth of the market.
This online gaming market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the online gaming market encompasses successful business strategies deployed by the key vendors. The online gaming market is fragmented and the vendors are deploying growth strategies such as heavily investing in planning, product designing and developing, acquiring new players, and expanding their existing product portfolios to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The online gaming market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
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51% of the market's growth will originate from APAC during the forecast period. China, South Korea, and Japan are the key markets for online gaming in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The popularity of online video games in Southeast Asia and the expansion of broadband connectivity will facilitate the online gaming market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
Countries in APAC, such as China, India and Australia, were among the severely affected countries by the COVID-19 pandemic in 2020. To curb the spread of COVID-19, governing bodies across APAC imposed lockdowns for several weeks in 2020 and the first half of 2021. However, with the initiation of large-scale vaccination drives, schools and colleges have started to reopen. Such factors may result in slower growth for the adoption of online gaming in the region during the forecast period.
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The online gaming market share growth by the MMO segment will be significant during the forecast period. The global online gaming market is growing, owing to the popularity of massively multiplayer online (MMO) games. MMO games are online games with a large number of players, typically ranging from hundreds to thousands, playing on the same server. The developers of MMO games are constantly developing new genres to break away from the traditional ways of gaming.
This report provides an accurate prediction of the contribution of all the segments to the growth of the online gaming market size and actionable market insights on post COVID-19 impact on each segment.
Technavio categorizes the global online gaming market as a part of the global interactive home entertainment market within the global media and entertainment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the online gaming market during the forecast period.
Our report provides extensive information on the value chain analysis for the online gaming market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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Online Gaming Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.27% |
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Market growth 2022-2026 |
$ 46.59 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
8.22 |
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Regional analysis |
APAC, MEA, North America, South America, and Europe |
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Performing market contribution |
APAC at 51% |
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Key consumer countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Activision Blizzard Inc., Alphabet Inc., Apple Inc., ArkGames, BANDAI NAMCO ENTERTAINMENT EUROPE S.A.S., Capcom Co. Ltd., Electronic Arts Inc., GREE Inc., Microsoft Corp., NetEase Inc., NEXON America Inc., Nintendo Co. Ltd., PopReach Corp., Riot Games Inc., Sega Corp, Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., Ubisoft Entertainment, 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, Market condition analysis for the forecast period |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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