Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Video Game market.
Trusted Business Insights presents an updated and Latest Study on Video Game Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Video Game market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Video Game Market
The global video game market size was valued at USD 140.95 billion in 2020 and looks set to grow at a Compound Annual Growth Rate (CAGR) of 11.8% from 2021 to 2027. Technological proliferation and innovation in both hardware and software are expected to be the key factors driving the growth. The growing penetration of internet services coupled with the easy availability and access of games on the internet across the globe is also expected to keep the market growth prospects upbeat in the forthcoming years. Game developers are also constantly improvising and pushing the technological limits regarding the real-time rendering of graphics in the video game industry, which is further expected to propel the growth.
The rising inclination from physical games to online games has led the industry participants to focus on hardware compatibility and efficiency. Free2Play (F2P), Massively Multiplayer Online (MMO), and multiplayer games have progressively gained popularity, a trend which is anticipated to continue over the next eight years. The increase in disposable income level is leading to an increased consumer spending on gaming products. Furthermore, the changing consumer preferences have led to the large-scale adoption of more advanced gaming consoles equipped with sophisticated features such as record and share and cross-platform gameplay.
The trend of social media gaming is expected to have a positive impact on shaping up the market growth. For instance, a substantial percentage of the global population use social networking sites such as Facebook and Reddit for gaming. The availability of different genres of games such as action, role play, simulation, and strategy is anticipated to attract the customers. Growing popularity of eSports tournaments and the increasing number of professional gamers are anticipated to increase sales of video games and accessories along with gaming hardware and software.
The video game market is experiencing high demand in various avenues such as educational institutes and corporate enterprises. The adoption of gaming as an educational tool provides opportunities for deeper and cognitive learning. The concept of ˜gaming to learn has been around for quite some time. However, the actual potential for gamification possibilities in the academia vertical is being exploited only recently.
The rising adoption of counterfeit products, owing to their low prices, especially in countries such as China and Indonesia is expected to hamper the market growth over the forecast period 2021-2027. Copyright and piracy issues are expected to negatively impact the market growth. Concerns relating to fraud during gaming transactions are also anticipated to hamper the growth. A steep rise in video game-related health issues and problems is another factor expected to restrain the growth.
COVID-19 Insights: Video Game Market
The COVID-19 pandemic continues to take its toll on the global economy; however, the video game industry is expected to exhibit remarkable growth over the next few months. As governments across the globe have mandated home quarantining to prevent the spread of the COVID-19, companies are witnessing a surge in the number of users and a spike in the number of hours users spend to play online games. Furthermore, several gaming industries are releasing their online games for free downloading. For instance, in March 2020, Activision Blizzard, Inc. released Call of Duty: Warzone as a free download and recorded around 6 million downloads in a single day.
However, because of the pandemic, various companies suffer from delays and interruptions in their product launches. Furthermore, various press conferences, which are scheduled to deliver the latest game announcements and trailers are also got postponed. For instance, Game Developers Conference, which was initially scheduled in June 2020, was officially postponed owing to the rising spread of COVID-19 pandemic. The pandemic also impacted hardware production and supply chains. Many of these delays are due to various manufacturing facilities closing down in China, where many of these gaming products are made. For instance, in February 2020, Nintendo Co., Ltd. announced the delay of Nintendo Switch release, which was originally planned on March 6, 2020, as it closed its manufacturing facilities due to COVID-19.
Device Insights: Video Game Market
The mobile device segment led the market with a share of over 35% in 2019 and is expected to maintain its dominance over the forecast period. This dominance can be attributed to the increasing smartphone penetration across the globe. The mobile device segment is expected to gain momentum owing to increasing demand for tablets owing to advantages such as larger displays and better viewing experience. Handheld consoles are also expected to keep the growth prospects upbeat.
The console segment expected to register a considerable CAGR over the forecast period. Advantages such as the availability of high-end displays and sound systems that provide an improved and rich experience to customers are anticipated to generate the demand for consoles. Additionally, the consoles have been equipped with features that enable recording and online sharing of in-game footage. Dynamic simulation is another exhilarating feature offered by the next-generation gaming consoles, creating a feeling of immersion and allowing the gamer to actively influence the world around.
Type Insights: Video Game Market
The online video game segment is expected to gain traction over the forecast period. The increasing demand for multiplayer games is driving the demand for online games as they facilitate in-game communication and improve the overall gaming experience. Social networking sites are influential in providing online video games a virtual platform for their expansion.
Growing awareness towards interactive entertainment systems and rising number of gamers taking up gaming as an entertainment tool are further expected to generate the demand for online segment. Furthermore, growing penetration of smartphones and cloud gaming among others is expected to propel the growth of the segment. Market players involved in the development of video game consoles are laying emphasis on capitalizing the opportunities offered through online video games. For instance, Xbox Live by Microsoft Corporation and PlayStation Network by Sony Corporation enable gaming on the online platform.
Regional Insights: Video Game Market
The Asia Pacific lead the market with a share of over 50% in 2019. This can be attributed to the emergence of China as a major gaming hub. The ever-increasing smartphone penetration and the growing demand for entertainment in China is a key factor driving the regional growth. Tencent Holdings Limited, headquartered in China, has further emerged as the biggest player in the global market owing to its inorganic growth strategies, such as the acquisition of Riot Games and Supercell Oy, the developers of popular games such as League of Legends and Clash of Clans. The companys growth is a significant factor in driving the overall growth in China.
Increasing number of online gamers and rise in online gaming tournament in the Asia Pacific is encouraging vendors to launch various platform, which allow gamers to access AAA rated games. For instance, in December 2019, Tencent partnered with NVIDIA Corporation to launch a cloud gaming service, START. The new cloud gaming service allows gamers to access AAA games on underpowered device anywhere and anytime. South Korea is further expected to contribute significantly to the regional growth owing to its increased focus on e-sports and massively multiplayer online games. Massively multiplayer online role-playing games have gained immense popularity in South Korea.
Key Company and Market Share Insights: Video Game Market
Market players are largely focusing on the development of engaging content and next generation consoles. Popular video game consoles developed by these players include PlayStation 4 by Sony Corporation, Xbox One by Microsoft Corporation, and Wii U by Nintendo Co., Ltd. among others. Market players are largely focusing on offering product differentiation and innovation with a view of increasing their market share.
Prominent market players are laying significant emphasis on improving customer experience by offering products equipped with multi-utility features that enable users to play games and browse the internet at the same time. These multi-utility gaming consoles are anticipated to drive the growth over the forecast period. The vendors are also focusing on mergers and acquisitions of small and medium sized companies to stay competitive. For instance, In January 2018, Microsoft Corporation acquired PlayFab, a live gaming service provider, to accelerate advancements in game development innovation on a cloud platform. Some of the prominent players in the video game market include:
Key companies Profiled: Video Game Market Report
- Microsoft Corporation
- Nintendo Co., Ltd.
- Rovio Entertainment Corporation
- NVIDIA Corporation
- Valve Corporation.
- PlayJam Ltd.
- Bluestack Systems, Inc.
- Sony Corporation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global video game market report on the basis of device, type, and region:
Device Outlook (Revenue, USD Billion, 2016 – 2027)
Type Outlook (Revenue, USD Billion, 2016 – 2027)
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