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The subscription based gaming market size is forecast to increase by USD 7.79 billion at a CAGR of 12.17% between 2023 and 2028. Subscription-based gaming market is experiencing significant growth, driven by several key trends and factors. One major trend is the enhanced features of next-generation gaming consoles, which offer superior graphics, processing power, and connectivity, making subscription services more appealing to consumers. Another trend is the emergence of mobile cloud video gaming, which allows players to access high-quality games on-demand, without the need for expensive hardware. However, the market also faces challenges, such as the impact of piracy on subscription-based models. Piracy undermines the value proposition of these services, leading to revenue losses and customer dissatisfaction. Despite these challenges, the subscription-based gaming market is poised for continued growth, as technology advances and consumer preferences shift towards more flexible and convenient gaming options.
The Subscription-based gaming market has experienced significant growth in recent years, driven by the increasing engagement of audiences in various gaming genres such as Action and Adventure. Monthly fees grant access to additional benefits, including exclusive content and discounts, making it an attractive proposition for gamers. Subscription-based gaming services are available on various platforms, including gaming consoles, PC, AR, VR, and smartphones. The pandemic has further boosted the demand for leisure time activities, leading to an increase in the number of mobile gamers. Cloud-based gaming solutions have also gained popularity due to their accessibility and compatibility with high-end smartphones and IoT devices.
Moreover, microtransactions and paid downloads offer monetization opportunities, while AI enhances the gaming experience. The subscription economy continues to evolve, providing innovative gaming platforms and genre insights.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The action segment is estimated to witness significant growth during the forecast period. The action games are packed with thrills, challenges, and entertaining stories that demand to a wide variety of gamers. 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, such as Battlefield, while others are drawn to fantasy worlds, like Dark Souls, or sci-fi environments, such as Destiny. These thematic differences let developers and marketers target players based on their interests. Thus, the rising adoption of AR and VR in the action genre is a major factor that will fuel the growth of the action segment in the market during the forecast period.
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The action segment was valued at USD 1.61 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 42% 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.
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The Subscription-based Gaming Market encompasses various revenue models, including monthly fees and additional benefits, that cater to an engaged audience. Operators offer these services, which include microtransactions and paid downloads, to deliver interactive gaming experiences. The risk associated with subscription-based gaming is mitigated by the availability of a diverse range of games across multiple sectors, such as action, shooting, sports, adventure, fighting, role-playing, racing, and more. Key companies like Tencent, Sony, and Nintendo contribute significantly to the profit generation in this market. Subscription-based gaming services have gained popularity due to the growing middle-class population, increasing smartphone penetration, and the expanding gaming industry in the Asia Pacific (APAC) region.
Moreover, APAC is a hub for mobile gamers and mobile gaming companies, with a significant number of users preferring action, shooting, and role-playing games. The integration of artificial intelligence (AI) and the availability of games on smartphones, gaming consoles, and PCs have broadened the market's reach. The COVID-19 pandemic has further accelerated the growth of the subscription-based gaming market, as the remote work environment has led to an increase in the demand for entertainment and leisure activities. The action segment, in particular, has seen a growth in popularity due to the gamer's perception of convenience and the decision-making skills required in these games.
In conclusion, the prices of subscription-based gaming services vary depending on the device type and game type, with some offering free trials to attract new customers. SMEs have also started to adopt subscription-based gaming services as a cost-effective solution for their employees, recognizing the potential benefits for team building and employee engagement. The market's growth is further fueled by the availability of augmented reality (AR) and virtual reality (VR) games, which offer a more interactive gaming experience. The action and role-playing game segments are expected to continue dominating the market during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The enhanced features of next-generation gaming consoles is the key driver of the market. In today's subscription-based gaming market, leisure time activities have seen a significant shift towards interactive experiences offered by subscription games. Companies like Streamlabs and Stream Hatchet have capitalized on this trend, providing tools for content creators on streaming platforms such as Twitch. The integration of augmented reality (AR) and virtual reality (VR) technologies, along with artificial intelligence (AI), has further enhanced the gaming experience. The proliferation of high-end smartphones and IoT devices, coupled with widespread internet access, has expanded the reach of mobile gamers. Estimations suggest that cloud-based gaming solutions will continue to gain popularity, with service providers like Google for Games leading the charge.
Further, the subscription economy has transformed traditional gaming platforms, with companies adopting subscription business models. The competitive landscape is diverse, with gaming genre insights revealing a strong focus on the action and adventure genres. The COVID-19 pandemic and lockdown regulations have accelerated the adoption of cloud-based subscription games, as more people turn to gaming for entertainment. Newzoo reports that the global games market revenue is expected to reach USD 159.3 billion in 2020, with PCs and tablets remaining popular devices for gaming. In conclusion, the gaming industry continues to evolve, with advancements in technology and business models shaping the future of gaming experiences.
The emergence of mobile cloud video gaming is the upcoming trend in the market. Subscription-based gaming market is experiencing significant growth as more individuals turn to streaming platforms for their leisure time activities. Companies such as Streamlabs and Stream Hatchet, along with gaming giants like Twitch, are capitalizing on this trend by offering subscription games that can be accessed through various devices. Augmented reality and virtual reality technologies, as well as artificial intelligence, are enhancing the gaming experience for users. The increasing smartphone penetration and Internet access on high-end smartphones have expanded the reach of cloud-based gaming solutions to mobile gamers. According to recent estimations, the subscription economy is expected to continue its expansion, with gaming platforms adopting subscription business models.
Moreover, the global subscription-based gaming market is poised for continued growth, with the COVID-19 pandemic and lockdown regulations driving an increase in demand for cloud-based subscription games. Competitive games across various genres, including action and adventure, are attracting a diverse range of players. Google for Games and major gaming companies are investing in cloud-based gaming services. Tablet and PC providers are also entering the market to offer a more comprehensive gaming experience to users.
In conclusion, the Internet of Things (IoT) is also playing a role in the growth of the subscription-based gaming market, as devices become more interconnected and offer new opportunities for gaming experiences. Overall, the subscription-based gaming market is expected to continue its growth trajectory, offering a cost-effective and convenient alternative to traditional gaming methods.
Impact of piracy on subscription based gaming is a key challenge affecting the market growth. In today's leisure time, subscription games have emerged as a popular trend, with platforms facilitating access to these services through Twitch. The integration of augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) in gaming has further fueled the growth of this market. Smartphone penetration and internet access have expanded the reach of subscription games to mobile gamers, with estimations suggesting that cloud-based gaming solutions will dominate the market. The Internet of Things (IoT) and hardware sales are also expected to contribute significantly to the subscription economy. Despite the subscription business models not directly involving game publishers, they maintain partnerships with gaming platforms and console manufacturers.
Moreover, the COVID-19 pandemic and lockdown regulations have accelerated the shift towards cloud-based subscription games, as competitive games in genres like action and adventure have seen increased demand. Tablets and PCs serve as the primary devices for accessing these services. Service providers play a crucial role in delivering seamless gaming experiences to subscribers.
The market forecasting 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 market growth analysis strategies.
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.
Alphabet Inc.: The company offers subscription based gaming, such as Play Pass, under the subsidiary Google LLC.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Subscription-based gaming is an emerging trend in the gaming industry, gaining momentum with the increasing popularity of cloud gaming and the shift towards digital distribution. This business model allows players to access a library of games for a recurring fee, providing convenience and value to consumers. Subscription-based gaming services offer various tiers, catering to different budgets and preferences. The subscription gaming market is driven by factors such as the growing demand for on-demand content, the proliferation of high-speed internet, and the increasing adoption of mobile gaming. Additionally, the integration of social features and the availability of cross-platform compatibility are further fueling the growth of this market.
In conclusion, subscription-based gaming services provide game publishers and developers with a steady revenue stream, enabling them to invest in new game development and enhance the overall gaming experience. Furthermore, these services offer a competitive edge by providing exclusive content and early access to new releases. In conclusion, the subscription-based gaming market is poised for significant growth, driven by the changing consumer preferences and the evolving gaming landscape. With the increasing adoption of cloud gaming and the proliferation of high-speed internet, subscription-based gaming services are set to revolutionize the gaming industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.17% |
Market growth 2024-2028 |
USD 7.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.03 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., BLACKNUT, Blade SAS, Capcom Co. Ltd., Electronic Arts Inc., Epic Games Inc., Gimzawy, Microsoft Corp., NEOM Co., Netflix Inc., Nintendo Co. Ltd., NVIDIA Corp., Roblox Corp., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Ziff Davis Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Genre
7 Market Segmentation by Device
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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