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The global gaming market size was USD 203.12 billion in 2020. 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. The market 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.
Large people worldwide are inclined towards 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 the 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.
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 amongst 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.
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Growing Popularity of Gaming Championship 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 has 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 game. 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.
The inclination of Youth Towards Gaming to 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 millennials 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 its 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 around 48% of the video game 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 one hundred people.
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 has obsessive addiction issues. In addition to this, addiction to video games can even turn to 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 the gaming market.
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Shooter Segment to Stay at the Forefront
Based on the game type, the market is fragmented into 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.
Mobile Phone to Hold Dominant Share
By device type, the market is divided into PC/MMO, Tablet, Mobile Phone, and TV/Console.
The mobile phones 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.
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 gaming platforms such as Twitch, where they can gain loyal fans who are willing to support their channels financially.
Asia Pacific Gaming Market Size, 2017-2028 (USD Billion)
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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 its 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 was 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 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 Person data, in 2019, the United States population of age 50 years and above has 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 from its 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 the South Africa smartphone penetration experienced an enlargement from 81.7% to 91.2% in 2019.
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 are also constantly moving towards improving the display and graphics of video games for various devices.
An Infographic Representation of Gaming Market
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The market research report provides a detailed analysis of the market and focuses on critical aspects such as leading games 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.
Value (USD Billion)
By Game Type
By Device Type
North America (By Game Type, Device Type, End-User and by Country)
Europe (By Game Type, Device Type, End-User and by Country)
Asia Pacific (By Game Type, Device Type, End-User and by Country)
South America (By Game Type, Device Type, End-User and by Country)
The Middle East and Africa (By Game Type, Device Type, End-User and by Country)
Fortune Business Insights states that the market size was USD 203.12 billion in 2020 and is projected to reach USD 545.98 billion by 2028.
In 2020, Asia Pacific stood at USD 86.96 billion.
Growing at a CAGR of 13.20%, the market will exhibit moderate growth in the forecast period (2021-2028).
The mobile phone segment is the leading segment in this market during the forecast period.
The youth population progressively inclined towards video games acts as a driving factor for the market growth.
Rovio Entertainment Corporation (Espoo, Finland), Nvidia Corporation (California, United States), Valve Corporation (Washington, United States), and PlayJam Ltd (London, United Kingdom) are some of the major players in the market.
Asia Pacific dominated the market share in 2020.
The growing number of people owning a smart device drive the adoption of the product.
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