Video Game Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Video Game Market Analysis

The Video Game Market size is estimated at USD 254.16 billion in 2024, and is expected to reach USD 467.45 billion by 2029, at a CAGR of 12.96% during the forecast period (2024-2029).

• Technological advancements in gaming hardware are poised to unlock a multitude of market opportunities. The debut of high-powered consoles, such as the PlayStation 5 and Xbox Series X|S, heralded a transformative phase in gaming. These state-of-the-art consoles, equipped with cutting-edge graphics, rapid load times, ray tracing, and elevated frame rates, significantly enhance the immersive and visually captivating nature of gaming.
• The surge in mobile gaming can be attributed to the evolution of mobile phones, now armed with robust processors like Apple's A-series chips and Qualcomm's Snapdragon. These advancements, coupled with superior graphics, enhanced processing capabilities, and support for augmented (AR) and virtual reality (VR), empower smartphones to deliver top-tier gaming experiences on the move. Furthermore, the global uptick in 5G smartphone adoption presents vast opportunities for video game vendors. For context, Ericsson reports that global smartphone mobile network subscriptions neared seven billion in 2023, with projections surpassing 7.7 billion by 2028. Notably, China, India, and the U.S. lead in subscription numbers.
• Cloud gaming acts as a major driver of the video game market. Cloud gaming platforms such as Google Stadia, Microsoft Xbox Cloud Gaming, NVIDIA GeForce Now, and Amazon Luna enable players to stream games directly to their devices, eliminating the need for dedicated hardware. This shift removes the reliance on powerful PCs or consoles, democratizing access to AAA games and enhancing accessibility across various demographics, thereby accelerating market growth. Furthermore, the emergence of 5G networks is poised to enhance cloud gaming experiences by delivering faster, low-latency internet connections, ensuring more reliable and interactive streaming.
• Platforms including Twitch, YouTube Gaming, and Facebook Gaming have established themselves as dominant forces in the esports arena. Here, gamers can stream their gameplay, engage with viewers, and monetize their content through avenues like subscriptions, advertisements, and donations. Content creators and influencers play a pivotal role in this landscape, drawing in millions of viewers and influencing video gaming trends.
• The growing emphasis on virtual reality (VR) and augmented reality (AR) technologies is propelling market expansion. With devices such as Oculus Quest, PlayStation VR, and HTC Vive, players are ushered into a fully immersive gaming realm, enriching both single-player and multiplayer experiences with unprecedented depth and excitement. 
• With the growing integration of online services in gaming, players' personal information including email addresses, credit card details, and gameplay data faces heightened vulnerability to breaches. cybersecurity risks and data breaches impede market growth.
• Macroeconomic factors such as inflation, rising interest rates, geopolitical conflicts impact on market growth. As inflation increases costs for developers and platforms, companies might elevate subscription prices for services such as Xbox Game Pass, PlayStation Now, and EA Play to safeguard their profitability. Such price increases could induce subscription fatigue in consumers, particularly as they grapple with escalating expenses in other life domains. 

Video Game Market Trends

Mobile Segment is Expected to Witness Remarkable Growth

Video Game Industry Segmentation

A video game is an electronic game where players interact with a user interface or input device, be it a joystick, controller, keyboard, or motion-sensing device, to receive visual feedback. This feedback, usually displayed on screens such as televisions, monitors, or VR headsets, includes moving images, text, or graphics that depict the game's world or virtual environment.

The study tracks the revenue accrued through the sale of video games by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The video game market is segmented by device type (computer, mobile, and console), type (online and offline), and geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.