|Study Period:||2018- 2026|
|Fastest Growing Market:||Middle-East and Africa|
|Largest Market:||Asia Pacific|
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The Global Gaming Market was valued at USD 173.70 billion in 2020 and is expected to reach a value of USD 314.40 billion by 2026, registering a CAGR of 9.64% over the forecast period (2021 – 2026). Due to nationwide lockdown, people are staying home, and some are turning to the gaming platforms to pass the time. These platforms are attracting more than hundreds and thousands of new visitors in online traffic.
Video gaming trends have experienced a massive surge in players and revenue recently. Companies, like Microsoft, Nintendo, Twitch, and Activision, have all reached new heights in player investment. In April 2020, Microsoft reported that subscribers to Xbox Game Pass, a Netflix-like subscription service, topped 10 million. Among those subscribers, Microsoft also reported a 130-percent increase in multiplayer engagement across March and April.
- The emergence of cloud gaming is driving the market. Recent advances in advanced cloud technology have turned the idea of cloud gaming into reality. In cloud gaming, the server, where all the games are stored, does all the computation work, which includes game scene rendering, game logic processing video encoding, and video streaming. Several companies such as Onlive, G-Cluster, StreamMyGame, Gaikai, and T5-Labs are already offering commercial cloud gaming services. This new sector is also seen as a serious competitor for the traditional game market.
- This has prompted video game majors such as Sega, Ubisoft, Epic Games, Atari, Warner Bros, Disney Interactive studio to establish partnerships with Onlive to distribute their games. Also, in May 2020, Nvidia GeForce Now added 19 games to its cloud gaming library, and further announcing an additional18 new games that will be available on GeForce NOW.
- Adoption of gaming platforms, such as E-sports, drives the market. eSports are witnessing substantial market demand in the current market scenario, and are thus driving the overall gaming industry across the globe. Riot Games with League of Legends and DotA 2 are two of the notable examples of influential actors in the eSports business. South Korea is considered to be the country of origin of eSports. Even though the United States overtook South Korea in terms of revenues in the eSports business, it still hosts one of the biggest tournaments in the world.
- The sector is also witnessing considerable activity from startups, that are further propelling the market growth. For instance, ‘The Forge Arena’ made by Phoenix Rising Studio’s is a Canadian startup that is looking to become a new player in eSports. The game is free to download under the same models as Fortnite and Counterstrike, selling in-game extras to make revenues focussing on collectible and tradeable skins.
Scope of the Report
Gaming, for the purpose of this report, is defined as playing electronic games conducted through multiple variety of means, such as through the use of computers, mobile phones, consoles, or another medium altogether. There is an increasing prevalence of high-speed internet connections, especially in emerging economies, which has made online gaming practical for more people in recent years.
The gaming market is growing with the increasing per capita income, growing interest, and the rising number of dual-income households, which augments the transformation of the global market. With the increasing usage of smartphones and consoles and cloud penetration, the market shows high potential growth in the future.
Key Market Trends
Smartphone is Expected to Witness Significant Growth
- Smartphone gaming has exploded in the past couple of years. There were more than 200 million mobile game players last year in the United States alone. This growing demand for mobile games is a direct result of the multiple technological advancements in the market, such as AR, VR, cloud gaming.
- Moreover, large companies creating games for consoles and PC’s are also releasing their games in Mobile version owing to the increasing mobile games market. The most highly waited mobile game of 2019 was the Call of Duty: Mobile. The franchise finally made its transition into mobile gaming, and the results were also quite good.
- Further, the release of 5G and unlimited data plans are also expected to be key factors towards the success of cloud gaming across the globe, as most gamers today are preferring games on mobile devices. The increasing services and investment in the 5G infrastructure are also very important towards this success. According to Ericsson, the number of 5G mobile subscriptions in the Asia-pacific region is expected to reach around 1,545 million by 2025.
- The smartphone gaming market is witnessing rapid growth and is representing a cost-effective opportunity for investors, mobile developers, and publishers. It is also expected that by 2021, the number of mobile online gamers in the Southeast Asian region would rise to 250 million.
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Asia Pacific is Expected to Hold the Largest Market Share
- Asia Pacific is anticipated to hold the largest market share in the gaming industry, where countries such as China, Japan, and South Korea show a high potential in market growth. The Chinese enterprises are ready to embrace the business opportunities brought by global digitalization due to the rise in the digital ecosystem. At the end of the year 2019, the government of Beijing, the country’s capital and home to more than 20 million people, announced its plan to become the international capital of online games latest by the year 2025. The primary plan is to create a strategy that is built around a pretty aggressive revenue target, with the local government also involved.
- Moreover, technologies such as 5G are also driving the mobile-based VR gaming market in the China region. For instance, in May 2020, Archiact has announced a partnership with Migu, a subsidiary of telecom provider China Mobile, for Archiact’s games that would be the first VR games o be playable via Migu’s 5G cloud gaming platform, named as Migu Quick Gaming. Also, by partnering with Migu, Archiact states that it is able to work together to build the future of 5G VR cloud gaming, thus making VR even more accessible.
- Further, according to GamesChowk, Japan's market has more than 70 million gaming players. Also, according to the Computer Entertainment Supplier's Association, the value of the gaming market in Japan is expected to reach JPY 1.55 trillion in 2024 from JPY 1.4 trillion in 2017. The handheld and home video game consoles hold a prominent share of the country's gaming market. According to Famitsu, up till 2020, Nintendo Switch accounts for 11.35 millions units sales of consoles, followed by PS4 with 7.59 million unit sales, new 3DS LL with 5.89 million unit sales.
- Also, South Korea is one of the prominent country known for its culture of online gaming. The increasing penetration of smartphones and application stores with the right combination of hardware makers and software developers and rising internet infrastructure is driving the growth of the gaming industry in the country. Additionally, according to the Korea Creative Content Agency, the size of the gaming market in the country is expected to reach KRW 15.84 trillion in 2021 from KRW 7.43 trillion in 2010.
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The Gaming Market is highly fragmented as the demand for online games and increasing penetration of mobile applications across the various region is catering to an intense rivalry in the market. Key players in the market are Sony Corporation, Microsoft, Nintendo, etc. that try to keep innovating and releasing next-generation gaming consoles provides a significant competition among the rivals.
- May 2020 - Microsoft has revealed the launch of the game ‘Scarlet Nexus’ in Xbox Series X, by the end of 2020. The game claims to support the key technical features of the Xbox Series X, such as real-time ray tracing, 120-frames-per-second animation, and super-fast loading times.
- October 2020 - JetsSynthesys announced a 100% acquisition of mobile gaming development studio Nautilus Mobile. With the acquisition, JetSynthesys claims to have become the number one skill-based gaming franchise globally with 100 million downloads and 10 million MAUs. With the online gaming industry is shooting up, the acquisition also sets to deepen their foray into cricket esports.
- April 2020 - Sony launched the first look of the DualSense wireless controller, which comes together with Playstation 5 that is going to release at the end of 2020. The features of DualSense, along with PS5’s Tempest 3D AudioTech, will deliver a new feeling of immersion to players. DualSense also adds a built-in microphone array, which will enable players to chat with friends without a headset easily.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.4 Market Drivers
4.4.1 Rising Internet Penetration
4.4.2 Emergence of Cloud Gaming
4.4.3 Adoption of Gaming Platforms, such as E-sports Betting and Fantasy Sites
4.5 Market Restraints
4.5.1 Issues, such as Piracy, Laws and Regulations, and Concerns Relating to Fraud During Gaming Transactions
5. MARKET SEGMENTATION
5.1 Gaming Type
5.1.4 Downloaded/Box PC
5.1.5 Browser PC
5.2.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.2.3 Asia Pacific
188.8.131.52 South Korea
184.108.40.206 Rest of Asia Pacific
5.2.4 Latin America
220.127.116.11 Rest of Latin America
5.2.5 Middle East and Africa
18.104.22.168 United Arab Emirates
22.214.171.124 Saudi Arabia
126.96.36.199 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Sony Corporation
6.1.2 Microsoft Corporation
6.1.3 Apple Inc.
6.1.4 Google LLC (Alphabet Inc.)
6.1.5 Bandai Namco Entertainment, Inc.
6.1.6 Take-Two Interactive Software, Inc.
6.1.7 Nexon Company
6.1.8 Nintendo Co. Ltd
6.1.9 Activision Blizzard Inc.
6.1.10 Electronic Arts Inc.
6.1.11 Ubisoft Entertainment SA
6.1.12 Square Enix Holdings Co. Ltd
6.1.13 ZeptoLab, OOO
6.1.14 Tencent Holdings Limited
6.1.15 Sega Games Co. Ltd
6.1.16 Capcom Co. Ltd
6.1.17 NetEase Inc.
6.1.18 37 Interactive Entertainment
6.1.19 Beijing Kunlun Technology Co. Limited
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Gaming Market market is studied from 2018 - 2026.
What is the growth rate of Gaming Market?
The Gaming Market is growing at a CAGR of 9.64% over the next 5 years.
Which region has highest growth rate in Gaming Market?
Middle-East and Africa is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Gaming Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Gaming Market?
Sony Corporation, Microsoft Corporation, Nintendo, Tencent Holdings Limited, Electronic Arts Inc. are the major companies operating in Gaming Market.