US - Video Game Market by Platform and Type - Forecast and Analysis 2023-2027

US Video Game Market Forecast 2023-2027

The US video game market size is forecast to increase by USD 22.99 billion at a CAGR of 11.13% between 2022 and 2027. The growth of the market depends on several factors, such as the rising penetration of smartphones and improving internet access, the evolution of the PC and console gaming industry, and the increasing popularity of eSports tournaments. The popularity of mobile gaming has significantly contributed to the growth of the US video game market, and the most popular video game genres in the US include action, shooter, sports, and role-playing games. This market research and growth report includes an in-depth analysis of the key market drivers, trends, and challenges. 

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In the US video game market, online games and download games, along with subscription-based services like Google Stadia, cater to a diverse audience, including casual gamers and consumers, with B2C enterprises offering digital video games and mobile games through gaming networks, leveraging the popularity of online gaming and 3D games, driven by the penetration of smartphones, especially technologically advanced smartphones, expanding the customer base and the number of video gamers.

Market Segmentation

In the US video game market, the mobile devices segment thrives on the widespread penetration of smartphones. With technologically advanced smartphones becoming ubiquitous, the customer base for mobile gaming continues to expand rapidly. The increasing number of video gamers, fueled by population growth and changing demographics, contributes to the segment's success. Mobile devices offer unparalleled accessibility, allowing gamers to engage in gaming experiences anytime, anywhere. Moreover, mobile gaming fosters social interaction among players, bridging gaps across demographics and enhancing connectivity. As the birthplace of iconic games like Atari and Pong, the US has a rich history of commercial success in the video game industry. Looking ahead, the market outlook for the mobile devices segment remains promising, driven by social interplay, cultural reputation, and the unwavering enthusiasm of game enthusiasts.

Platform Analysis

The mobile devices segment is estimated to witness significant growth during the forecast period. Factors such as a growing number of consumers using their smartphones and tablets as their primary gaming platforms are fuelling the growth of this segment. The users of this segment are smaller in scale and the consoles are less complex when compared to  PC games.

Figure 2: Market by Platform (2017-2027)

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The mobile devices segment was the largest segment and was valued at USD 9.10 billion in 2017. Due to its less complexity, there is an increasing adoption of this segment across a wide range of audiences, including casual gamers who are looking for quick and easy entertainment on the go. The main advantage of this segment is that it is relatively easy to distribute, with users able to download it from app stores, including the Apple App Store or Google Play. Additionally, the diversity of titles available is also fuelling the growth of this segment. Hence, such factors are expected to fuel the growth of the mobile devices segment, which in turn will drive the market growth during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2022 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

One of the key factors driving the market is the increasing popularity of eSports tournaments. There is an increasing participation by pro gamers in several multiplayer video game competitions known as eSports tournaments. These tournaments take place on eSports tournaments online platforms which eliminates geographical and temporal limitations.

Moreover, there is an increase in funding for these tournaments by several technological giants such as  Intel, Micro-Star INT'L, and Logitech.  As a result, various enterprises are encouraged to invest in eSports to cater to the increasing demand. Hence, such factors positively impact the market. Therefore, it is expected to drive the market growth during the forecast period.

Significant Market Trends

A key factor shaping the market is the increasing popularity of gaming among women. There has been a significant shift in gaming demographics in the US over the years. Earlier, the traditional market used to be dominated by men whereas there has been an increase in female participation in video game tournaments over the years.

Moreover, the increase in female gamers is fuelled by the growing prevalence of mobile gaming. As a result, several game developers are identifying the requirement to create games that cater to a broader audience, which results in more diverse game offerings. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.

Major Market Challenges

The adverse health effects of gaming are the key challenges hindering the market. There has been a growing concern regarding gaming addiction across the US population over the last few years. Due to the increase in gaming addiction among the population, people tend to become physically inactive, which over time, makes them them vulnerable to a variety of health issues, including carpal tunnel syndrome, headaches and migraines, and sleep difficulties. 

Moreover, the increase in gaming addiction leads to long hours spent playing video games resulting in rising cases of childhood obesity. Genetics, a lack of exercise, poor eating habits, hormonal issues, or a combination of these things are some of the factors fuelling the rise in childhood obesity. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.

Market Companies and Competitive Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, product/service launches, and market growth and trends to enhance their presence in the market.

Activision Blizzard Inc: The company offers video games such as Candy Crush, Call of Duty, World of Warcraft, Overwatch, Hearthstone, and Diablo, delivering interactive gaming and entertainment experiences.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Apple Inc., CyberAgent Inc., Electronic Arts Inc., Epic Games Inc., Microsoft Corp., NetEase Inc., NEXON Co Ltd., Nintendo Co. Ltd., Roblox Corp., Sega Sammy Holdings Inc., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., The Walt Disney Co., Ubisoft Entertainment SA, Valve Corp., Warner Bros Discovery Inc., Bandai Namco Holdings Inc., and Embracer Group AB

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.

Market Analyst Overview

The market is driven by the flourishing online gaming sector, fueled by high-bandwidth network connectivity and technologically advanced smartphones. A growing customer base of avid video gamers is influenced by population growth, enhanced accessibility, and cultural acceptance, leading to mainstream popularity. From 3D games to multiplayer online battle arenas and first-person shooter games, social interaction thrives in captivating virtual worlds. Internet penetration drives the market share and revenue, particularly in the console device segment. The release of free-to-play games like 1C Entertainment, Inflexion Games. Super Mega Baseball 4, FIFA 22 engage millions, while online casual gaming sectors democratize access to gaming content. Key players like AT&T, NVIDIA Corp, and others contribute to the market's growth with investments in 5G networks and a plethora of free-to-play titles.

The market continues to flourish, with a significant portion of revenue coming from subscription-based services like Google Stadia. B2C enterprises dominate the market, offering a diverse range of digital video games including online, download, and mobile games. The number of video gamers is continuously growing, fueled by the popularity of gaming networks and the rich history of the US as the birthplace of games, from Atari to Pong. Commercial success is evident, reflecting a positive market outlook. Social interplay and cultural reputation further enhance the experience for game enthusiasts, making the US a thriving hub for the entertainment industries.

US  Video Game Market Scope
Report Coverage	Details
Page number	132
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.13%
market growth 2023-2027	USD 22.99 billion
market structure	Fragmented
YoY growth 2022-2023(%)	10.37
Competitive landscape	Leading Companies, market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Activision Blizzard Inc., Apple Inc., CyberAgent Inc., Electronic Arts Inc., Epic Games Inc., Microsoft Corp., NetEase Inc., NEXON Co Ltd., Nintendo Co. Ltd., Roblox Corp., Sega Sammy Holdings Inc., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., The Walt Disney Co., Ubisoft Entertainment SA, Valve Corp., Warner Bros Discovery Inc., Bandai Namco Holdings Inc., and Embracer Group AB
market dynamics	Parent market analysis, Market forecasting ,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.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Market analysis and report on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market growth and market trends and analysis with changes in consumer behavior
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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