Gaming Market Size, Share & COVID-19 Impact Analysis, By Game Type (Shooter, Action, Sports, Role-Playing, and Others), By Device Type (PC/MMO, Tablet, Mobile Phone, and TV/Console), By End-User (Male and Female), and Regional Forecast, 2021-2028

The global gaming market size was USD 203.12 billion in 2020 and is projected to grow from USD 229.16 billion in 2021 to USD 545.98 billion in 2028 at a CAGR of 13.20% during the 2021-2028 period. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with the industry witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 38.24% in 2020. 

Large people worldwide are inclined toward gaming as one of their major sources of entertainment. Playing video games offers stress relief. Besides, it gives the experience of working in a team and helps to provide a sense of achievement to players. Thus, such a feeling of self-satisfaction and joy is expected to generate more traction.  Additionally, it acts as a significant tool for calming down playful kids and entertaining older adults with more free time. Besides, the escalating expenditure on home entertainment systems worldwide acts as the driving factor for market growth. For instance, in January 2020, Deg Online.Org data mentions that the United States consumer expenditure on home entertainment exhibited a surge of 8.4%, which is around USD 25.2 billion.

COVID-19 Impact:

Lockdown-induced Indoor Stay to Drive Demand for Online Gaming Globally

The preventive measures taken by a majority of the global population from the coronavirus fostered a large number of people to spend most of their time in their homes. The gloomy situation resulted in stress and anxiety, and fear among people.  

Moreover, people were not able to participate in outdoor activities or social gatherings. All these factors cumulatively acted as a propelling force driving the consumption of different online games leading to coping with various mental issues. For instance, the World Economic Forum data in September 2020 declared that in the United States, gaming unit sales witnessed an enormous rise of 37% year over year to USD 3.3 billion.

LATEST TRENDS

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Growing Popularity of Gaming Championships to Aid Gaming Market Growth

Various championships increasingly entice video game players across the globe. Different games, such as PUBG, Overwatch, Call of Duty, League of Legends, and others, are popular among gamers. These championships gain a sizable viewership, which directly or indirectly influences more consumers to become professional gamers. Hence, this led to increased spending on updating or purchasing new video game systems.

According to Esports Chart data, in 2020 League of Legends Championship gained a viewership of 3.8 million. In addition, the high price money offered by the video game championship resulted in encouraging more people to play a video games. For instance, in August 2020, Times Now News declared that PUBG Mobile Global Championship has offered a prize pool of USD 2 million. This attracts several players preferring online gaming modes.

DRIVING FACTORS

The inclination of Youth Towards Gaming Favor Growth

Today, young people are increasingly using video games as one of the major tools for occupying their free time. It has played a vital role in boosting market growth. For instance, in February 2019, the data released by the American Association of Advertising Agencies.Org mentioned that 91 percent of generation Z males play video games regularly, which is incrementally higher than the millennial generation of 84 percent.

Besides, the global youth unemployment witnessing a gradual decline has resulted in hiking the purchasing power, which accelerates the consumption rate. For instance, the data released by the World Bank.Org, states that the global youth unemployment in 2018 was 15.19%, a decline of 15.37 % from the prior year. This is expected to boost the growth of the global market during the forecast period.

Mobile Users Increasingly Inclined Towards Gaming to Spike Demand.

Mobile gaming is progressively gaining users across the globe owing to the rising incorporation of 4G technology in smartphones has led to a surge in the production of attractive online interactive games. Hence, these games attract players of multiple demographics worldwide and act as a driving factor for their growth. For instance, in May 2020, the data presented by the World Economic Forum.Org, mentions that mobile games contribute to around 48% of the video gaming industry. Likewise, the booming mobile cellular subscription has also played a significant role in spiking the demand for mobile games. For instance, the data presented by the World Bank.Org, mentions that in 2019 the global mobile cellular subscription is 109.397 per hundred people.

RESTRAINING FACTORS

Growing Addiction among Youth to Hamper Market Growth

The growing number of gamers who intensely play video games, especially children, is often turned into an addiction. This hampers their studies and gives rise to social anxiety. Thus such activities are repelling parents to purchase a gaming system for their children.

According to a well-trusted addiction recovery firm called ‘The Recovery Village’ in April 2021, there are over 2 billion people who play video games worldwide, out of which 1–10% of gamers have obsessive addiction issues. In addition to this, addiction to video games can even turn into mental health issues propelling parents to repel from purchasing the product for their kids. This is likely to act as a restraining factor for the growth of this market.

SEGMENTATION

By Game Type Analysis

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Shooter Segment to Stay at the Forefront

Based on the game type, the market is fragmented into a shooter, action, sports, role-playing, and others.

The shooter segment is projected to hold a strong gaming market share on account of most shooter games providing 3D realistic graphics, which often come with multiplayer functionality, attractive weapons and characters, and obsessive challenging tactical missions. Therefore, these thus play a crucial role in helping to attract more gamers to this type of game.

On the other hand, segments such as action, sports, role-playing, and others are also experiencing a decent market enlargement. These genres of games can meet the desire of a specific target audience from sportsmen to women, children, and even the elderly population.

By Device Type Analysis

Mobile Phone to Hold Dominant Share

By device type, the market is divided into PC/MMO, Tablet, Mobile Phone, and TV/Console.

The mobile phone segment is anticipated to remain dominant due to the increasing number of people owning smartphones. A large number of game developers are shifting their focus to increased production of games, particularly design for mobile phones.

The PC/MMO, Tablet, and TV/Console market segments are also witnessing positive traction. Most of these devices are often chosen by serious gamers as they are more capable of handling high-definition games requiring powerful processors, graphic cards, and RAM.

By End-User Analysis

Male Segment is Anticipated to Lead

By end-user, the market is bifurcated into male and female.

The male segment is estimated to be a bigger market due to the large number of games available in the market, such as racing, sports, action, and others, designed to be more male-oriented than females. Hence, this plays a significant contribution in male dominance in the industry.

The female segment is increasingly showing a progressive rise, as more females are influenced by online pc gaming platforms such as Twitch, where they can gain loyal fans who are willing to support their channels financially. 

REGIONAL INSIGHTS

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Asia Pacific stood at USD 86.96 billion in 2020 and is expected to remain at the forefront during the forecast period. Video game consoles observing escalating traction among consumers of this region have played a significant role in gaming industry development. For instance, in May 2019, Business Insider declared that Nintendo Switch sold 8.12 units in Japan, and PlayStation 4 sold 6.91 million units.

In addition, the rapid growth in the urban population is giving rise to the increasing awareness of trending video games launched and retailed in the market, helping to surge the consumption rate. According to the World Bank.Org data, in 2019, the urban population of the East Asia Pacific was 59.887%, which rose by 59.053% from the prior year.

Europe is expected to showcase substantial growth owing to the flourishing development of esports, attracting more people to video games. For instance, as per the data presented by Ukie.Org. Uk, mentions that in 2019 esports in the United Kingdom were assessed to make an earning of USD 76.53 million. Besides, the industry in this region receiving an increased investment from the federal government for the enlargement of the market is likely to fuel the demand. According to the Germany Games Industry Association data, in 2019, the German federal budget contains USD 55.99 million to enhance computer game development.

North America is anticipated to experience considerable growth in the market. The high popularity of playing video games among older adults has spiked the product's demand. According to the American Association of Retired Persons data, in 2019, the United States population of age 50 years and above constituted 51 million gamers who played an average of 5 hours a week. Besides, most children in this region carry their smart devices, surging the product's utilization. For instance, the data released by the National Public Radio.Org in October 2019 declares that more than half of the children in America own a smartphone.

South America demonstrates a substantial rise in the market, which is contributed by the upsurging growth of internet users in the region. This is thus helping to escalate the playing of online games among the South American population. For instance, the World Bank.Org data mentions that in 2018, Brazilian internet users are estimated to reach 70.434 percent, which is an increase from 67.471 percent in the prior year.

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The Middle East & Africa is expected to have a significant presence in the market. The booming growth of smartphone penetration is assisting in hiking the number of people playing mobile games. Therefore, this is helping to accelerate the consumption rate. For instance, the Independent Communications Authority of SA data states that South African smartphone penetration experienced an enlargement from 81.7% to 91.2% in 2019.

KEY INDUSTRY PLAYERS

Key Players Focus on Adoption of Virtual Reality Technology to Widen Their Business Horizons

The key players are progressively putting more focus on the production of a virtual reality gaming system. Such systems are expected to positively impact the market growth in the forthcoming years as it offers a more realistic experience of playing the game. For instance, the data presented by the Indian Express in February 2020 declares that Sony is working on launching a virtual reality headset for PlayStation 5. In addition, key companies such as Tencent Holdings is also constantly moving towards improving the display and graphics of video games for various devices.

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (Redmond, Washington, United States)


• Nintendo Co., Ltd (Kyoto, Japan)


• Rovio Entertainment Corporation (Espoo, Finland)


• Nvidia Corporation (California, United States)


• Valve Corporation (Washington, United States)


• PlayJam Ltd (London, United Kingdom)


• Electronic Arts Inc (California, United States)


• Sony Group Corporation (Tokyo, Japan)


• Bandai Namco Holdings Inc (Tokyo, Japan)


• Activision Blizzard, Inc (California, United States)

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – Facebook announced the acquisition of Play Giga, which is a Spanish video game company.


• November 2020: Microsoft declared the launch of the next-generation Xbox video game console. The flagship will be launched along with its cheaper counterpart Xbox Series S.

REPORT COVERAGE

An Infographic Representation of Gaming Market

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The global gaming market research report provides a detailed analysis of the market and focuses on critical aspects such as leading game companies, end-users, and leading product types. Besides this, the report offers insights into the current gaming market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope &Segmentation