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The subscription based gaming market size is forecast to increase by USD 4.41 billion is estimated to grow at a CAGR of 8.17% between 2023 and 2028. The growth of the market is influenced by several pivotal factors. The enhanced features of next-generation gaming consoles are a major driver, offering gamers superior graphics, faster processing speeds, and immersive experiences that elevate the overall gaming experience.
Additionally, the market is benefiting from an increasing number of strategic partnerships and acquisitions among gaming companies. These collaborations enable the development of exclusive content and services, attracting more subscribers to gaming platforms. Furthermore, the rising adoption of AR (Augmented Reality) games is significantly contributing to the popularity of gaming. AR games provide innovative and engaging gameplay experiences, merging the virtual and real worlds, and appealing to a broad audience. These factors collectively underscore the dynamic growth and evolving landscape of the market, highlighting its expanding influence in the entertainment industry.
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The market share growth by the smartphones segment will be significant during the forecast period. Smartphone-based subscription based gaming are online platforms that allow users to play games on their smartphones for a recurring fee. These services have grown in popularity over the past few years due to the convenience and flexibility they offer to gamers.
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The smartphones segment was valued at USD 3.22 billion in 2017. The growth of the smartphone-based subscription based gaming segment can be attributed to the rise of cloud gaming. Cloud gaming platforms such as Google Stadia and Xbox Game Pass allow users to stream games from a remote server, removing the need for high-end hardware. Google Stadia offers a subscription based service of USD 9.99 per month for users to access a library of games that can be played on any compatible device. Overall, the popularity of smartphone-based subscription based gaming is increasing due to its affordability, convenience, and its technological advancements, and increasing accessibility to a wider audience due to the availability of the Internet and technologically advanced low-cost smartphones are expected to drive the growth of the global subscription based gaming market through smartphones segment during the forecast period.
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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. APAC has emerged as a significant market for subscription based gaming driven by a growing middle-class population, increasing smartphone penetration, and a growing gaming industry across the region. The growing popularity of mobile-based subscription based gaming is driving the growth of the regional market. APAC is a hub for mobile gamers and mobile gaming. Some key mobile gaming companies that operate in the region are Tencent Holdings, Nexon Co. Ltd. (Nexon), and GungHo Online Entertainment. Such factors will increase segment growth during the forecast period.
The enhanced features of next-generation gaming consoles are notably driving the market growth, although factors such as the impacts of piracy may impede the market growth. Our researchers analyzed the data with 2022 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.
Enhanced features of next-generation gaming consoles are the key factor driving the growth of the Subscription based gaming market share. Even though the average gamer has had a gaming console for almost ten years, next-generation gaming consoles are released every five years (on average). The main reason for this is increasing consumer demand as they crave enhanced audio and visual experiences in games. Rising disposable income has enabled gamers to purchase high-end displays and televisions. The HD displays, along with high-definition multimedia interface (HDMI) and wireless network compatibility, have increased the expectations of gamers.
These add-ons have increased the availability of gaming as well. Also, the penetration of high-end sound systems, such as home theatre sound systems, provides gamers with a real-life-like gaming experience. With the enhancing features of gaming consoles, the global subscription based gaming market is expected to witness high growth during the forecast period.
The emergence of mobile cloud video gaming is the primary trend in the global subscription based gaming market growth. Cloud gaming involves accessing and playing games hosted by remote servers. Cloud gaming can be accessed from any internet-connected device for free or through a paid subscription. Such games allow users to stream games over the internet. The popularity of cloud gaming is driving the growth of the global subscription-based gaming market. Cloud gaming services have the potential to reach non-core gamers playing games on social media and mobile devices due to the low-cost pricing structure of such services. Cloud gaming allows you to stream your games over the internet instead of installing them locally.
Cloud-based games are stored on cloud-based platforms and streamed constantly. Such games eliminate the need for high-quality graphic cards, processors, and upgrades. They also improve the gaming experience on mobile devices that have an average processing capability. Hence, users can access such games on mobile devices with limited storage and processing capacity. The emergence of cloud gaming is expected to have a positive impact on the growth of the global market during the forecast period.
The impact of piracy is a major challenge to the growth of the global subscription based gaming market. In the age of digital content, piracy remains a major threat to game publishers. Copying, downloading, and sharing copyright-free content remains a major challenge in the global subscription-based gambling market. This discourages game publishers and studios from investing heavily in game development. Piracy primarily affects the digital and packaged games segment, which is the primary source of gameplay in the global subscription-based games market. Therefore, revenue generation is expected to be severely impacted during the forecast period.
Publishers are not directly involved in the subscription-based gaming marketplace, but they do have some connections with game console makers. Piracy not only affects the vendors' revenue but also severely impacts their sustainability in the global subscription-based gaming market. It is estimated that over 20% of gamers download games illegally. The major sources for downloading the games are peer-to-peer systems, websites, blogs, and stream-ripping applications. Thus, the rising cases of cyber threats and piracy are expected to hinder the growth of the global subscription based gaming market during the forecast period.
The Subscription Based Gaming market forecast 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 Subscription Based Gaming market analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Subscription Based Gaming 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.
Alphabet Inc.: The company offers subscription based gaming, such as Play Pass, under the subsidiary Google LLC.
The Subscription Based Gaming market forecast report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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 market is evolving rapidly, driven by technological advancements in the gaming sector, including artificial intelligence (AI) and virtual reality. Key vendors such as Activision Blizzard, known for titles like Call of Duty, Warcraft, Overwatch, and Guitar Hero, are leading the market. Revenue models in this market often include a monthly fee and additional benefits, appealing to an engaged audience. Subscription-based gaming services for console and PC gaming, VR, and mobile gaming revenue growth are transforming the industry. The COVID-19 pandemic, with lockdown regulations and remote work environments, has increased leisure time, boosting subscription games. Cloud-based gaming solutions and high-end smartphones are contributing to this growth.
The market is experiencing significant growth, driven by technological advancements in the gaming sector and increased internet access. Platforms like Stream Hatchet and Twitch are crucial for understanding current trends and gaming genre insights, particularly in the action genre. According to Porter's five forces analysis, stakeholders must navigate market segments, restraints, and opportunities. Analyst reviews and investments highlight the shift towards IoT and cloud-based subscription games, with a focus on the subscription economy and subscription business models. With a notable compound annual growth rate (CAGR), hardware sales, boxed or downloaded PC games, and competitive games are all part of this dynamic market. Reports from Zoo and the Internet and Mobile Association of India (IAMAI) provide further insights into this industry.
The market is growing rapidly, influenced by various gaming sectors like shooting, sports, adventure, fighting, role-playing, and racing. Operators are increasingly incorporating microtransactions and paid downloads, impacting prices and profit. SMEs play a significant role in diversifying the market by device type and game type. The action segment, particularly action games, dominates the subscription-based gaming market share. Gamer's perception and decision-making skills are pivotal, especially during the COVID-19 impact analysis where the remote work environment shifted gaming habits. Technological advancements in the gaming sector, highlighted by Streamlabs and insights from Sensor Tower Store Intelligence, Newzoo, and Google for Games, contribute to the market's growth. Estimations, including those in the Zoo report, show the rising subscription-based gaming market size, with popular titles like Crash Bandicoot leading the adventure genre.
The Subscription Based Gaming market research and growth 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.
Subscription Based Gaming Market Scope |
|
Report Coverage |
Details |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.17% |
Market growth 2023-2027 |
USD 4.41 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.61 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
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 |
Alphabet Inc., Amazon.com Inc., Apple Inc., BLACKNUT, Capcom Co. Ltd., Electronic Arts Inc., Epic Games Inc., GameClub Inc., Gimzawy, Microsoft Corp., NEOM Co., Netflix Inc., Nintendo Co. Ltd., NVIDIA Corp., Blade SAS, Sony Group Corp., Tencent Holdings Ltd., Ubisoft Entertainment SA, Yahoo, and Ziff Davis Inc. |
Market dynamics |
Parent market analysis, Subscription Based Gaming market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Subscription Based Gaming market worth and condition analysis for forecast period. |
Customization purview |
If our Subscription Based Gaming 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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