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The racing games market size is estimated to grow by USD 15.84 billion at a CAGR of 12.14% between 2023 and 2028. Market growth is contingent on several factors, such as the rise in internet penetration, frequent releases of new games, and increased funding and investment in the gaming industry. The increasing accessibility of the internet has expanded the potential user base for online games, driving demand. Simultaneously, the continuous launch of new games keeps the market dynamic and attracts users looking for fresh experiences. Moreover, the influx of funding and investment fuels innovation, leading to the development of more engaging gaming content. Collectively, these factors contribute to the growth of the market, which is expected to continue expanding as technology advances and consumer preferences evolve. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecast report includes historic market data from 2018 to 2028.
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The market share growth by the mobile segment will be significant during the forecast period. The mobile racing games market has experienced significant growth due to the widespread use of cellphones and smartphones for gaming. With the convenience of mobile devices, players can access high-speed internet and enjoy racing experiences anywhere. The freemium business model, where games are free to download but offer in-app purchases, has proven profitable for developers in the mobile segment. Emerging economies have also contributed to the market's growth due to the large user base and easy accessibility of mobile games through app stores. Racing games can be played on PC, mobile apps, consoles, and simulators connected to PCs or consoles. Players prefer client-type games because the user experience is better for players with setups such as PCs and consoles.
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The mobile segment was valued at USD 5.80 billion in 2018. Simulated racing games offer new maps, tracks, and continuous updates, providing an engaging experience for mobile gamers. Virtual reality (VR) and augmented reality technologies are becoming increasingly popular in the industry. These technologies give players an experience that makes them feel like they are in the game world. Rapid advances in technology, such as the availability of high-definition displays, audio devices, and wireless networking capabilities are increasing the demand for client games, which will boost the growth of the market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global racing games market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is APAC. APAC is one of the fastest-growing markets in the world, with a large and diverse gamer population. Mobile games are especially popular in APAC, with many gamers using their smartphones to play on the go. In terms of revenue, APAC accounts for over half of the global market. China is the largest market in the region, followed by Japan and South Korea. Southeast Asian countries such as Indonesia, Thailand, and Vietnam are also emerging as important markets for online gaming. The increasing use of online games through mobile platforms is increasing revenue from the market. The increasing focus of various government agencies on improving internet connectivity will support the market and drive the growth of online gaming. This will have a positive impact on the demand for racing games during the forecast period.
The market is thriving with the rise of next-gen gaming and the popularity of driving simulators among smartphone users. With a focus on realistic games and stunning visual effects, the market is witnessing a wave in in-app purchases and the purchase of apps. As smartphone subscriptions and mobile broadband connections continue to grow, the market is expected to follow a promising S-curve function trajectory, as observed in the Need for Speed series.
Increased internet penetration is notably driving the market growth. The increased accessibility of the Internet has made games more accessible to people around the world. Players can now connect and play games with others from anywhere with an internet connection. Mobile games are available to all and can be played by people in different parts of the world. This allows more people to participate in online games, leading to the growth of the industry. The internet has revolutionized communication in video games, allowing players to communicate with each other in real-time via chat and voice messages. This has significantly enhanced the gaming experience, particularly for smartphone users, who form a large portion of the gaming community. The increasing number of smartphone subscriptions has further fueled the growth of next-gen gaming, making real-time communication an integral part of modern gaming.
The Internet has provided opportunities for the online gaming industry to monetize their products. The companies can sell virtual goods, in-game currency, and game subscriptions to provide a sustainable revenue stream. As internet speeds and connectivity continue to improve, online gaming experiences become more realistic, which is expected to spur the growth of the market during the forecast period.
VR revolutionizing the gaming industry is a key trend influencing market growth. VR technology has enabled a more gaming experience where players feel like they are truly part of the game world. VR enhances the gaming experience with the ability to immerse the player in real time. The gaming industry is expected to grow during the forecast period due to continuous improvements in the technologies already used such as motion tracking, 3D effects, and interactive graphics. With increasing purchasing power, users are demanding cutting-edge entertainment and are observing VR gaming. One of the main impacts of VR on online gaming is the ability to provide players with a more realistic and interactive experience. VR allows gamers to see and interact with game elements more naturally and intuitively, enhancing the overall gaming experience.
Overall, VR has had a major impact on the gaming industry by offering players a unique gaming experience while opening up new possibilities for game design and social interaction. More VR games and experiences are likely to come in the future. Increasing adoption of VR in gaming will spur growth of the market during the forecast period.
The increasing prevalence of cybercrime in online gaming is challenging the market growth. Cybercrime is becoming more and more common in the online gaming world. Online gaming is a lucrative industry with millions of players worldwide and billions of dollars in annual revenue. Unfortunately, this also makes it a prime target for cybercriminals looking to exploit vulnerabilities to make money through illegal means. A common type of cybercrime in online games is hacking. Hackers can access players' accounts, steal virtual items, and even sell them for real money on the black marketplace. In some cases, hackers also use malware and phishing scams to gain access to players' private information, such as credit card numbers and login credentials.
To combat cybercrime in online games, developers and publishers implement various security measures, including two-factor authentication and anti-cheat software. But cybercriminals are constantly evolving their tactics, and keeping online gaming environments safe and secure for everyone is a constant challenge. Therefore, concerns about cyber threats will hamper the market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
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.
Aquiris Game Studio: The company offers different types of racing and adventure games, especially Horizon 2 Chase and Horizon world tour.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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
The market is experiencing significant growth driven by factors such as the increasing number of downloads and the adoption of digital products and services. With a focus on realistic gaming experience and distinctive racing games, the market is witnessing an exponential trend in non-linear growth. The availability of high-quality gaming experience and security features is attracting a growing number of gamers. The market is also benefiting from the expanding customer base in emerging economies, where high-speed internet is becoming more accessible. The market is influenced by B2C enterprises focusing on advertising to attract users. Market analysis often employs a bottom-up approach and relies on independent databases like MRFR Database and Crucial Market for insights into the latest gaming trends and next-generation games. Popular titles are leading the way on platforms like App Store and Google Play, making mobile gaming a primary source of income for many gaming leaguers.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.14% |
Market Growth 2024-2028 |
USD 15.84 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.6 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
China, US, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aquiris Game Studio, Bongfish GmbH, CREATIVE MOBILE TECHNOLOGIES LLC, Electronic Arts Inc., Embracer Group AB, Fingersoft, Hasbro Inc., Microsoft Corp., Modern Times Group MTG AB, Motorsport Games Inc, Motorsport Simulations, LLC, NEXON Co. Ltd., Nintendo Co. Ltd., RaceRoom Entertainment AG, Shanab Games, Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, Vector Unit, and Vivendi SE |
Market dynamics |
Parent market analysis, Market 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 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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