Global Video Games Market: By Devices (Smartphones, PC/Laptops, and Consoles),By Platform Type(Online, and Offline), By Application (Kids, Teenagers, Adults, and Senior Citizens), and By Regional Analysis (North America, Europe, Asia Pacific, South America,& Middle East and Africa) – Forecast period till 2029

Description

Market Overview

The Global Video Games Market was valued at USD 181.7 billion in 2021 and is forecasted to grow from USD 192.74 billion in 2022 to USD 301.19 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 6.3% over this period.
The industry experienced a notable growth rate of 24.21% in 2020 compared to 2019, largely due to the COVID-19 pandemic, which resulted in an unprecedented surge in demand for video games globally.

Video games are a type of interactive digital entertainment that can be played on devices such as smartphones, personal computers, laptops, and gaming consoles. They include unique graphics, computer-generated audio, visual effects, and narrative elements that enhance realism and user satisfaction. Technological advancements in areas like three-dimensional environments and improved graphics have further propelled market expansion. Video games can be enjoyed both online and offline. Online games have seen increased popularity due to the development of cloud-based gaming, where necessary resources and files are stored on the cloud and accessed via the internet during gameplay. Offline games are available on various devices but are predominantly designed for personal computers, laptops, and gaming consoles. Users can download and install necessary resources and data through portable storage mediums, such as CDs and USB drives, which do not require an internet connection.

Market Size for Global Video Games Market on the Basis of Revenues in USD Bn, 2018-2023

Source: Maven Market Research

Factors Affecting Growth of the Global Video Games Market :

Technological Advancements Enhancing Game Appeal– The increasing incorporation of 3D graphics, high-definition visuals, sound effects, Virtual Reality (VR), and Augmented Reality (AR) in video games has enhanced their visual and functional quality, making them more attractive to a broad audience. These advancements have made video games more realistic, with high-quality visual effects and detailed sound effects contributing to a natural appearance. Developers are concentrating on creating games with more lifelike graphics due to technological progress from 8-bit to 64-bit resolution. The continuous and rapid advancements in game development technology have led to a shift towards personalization and user-centric designs.

Improved Display Technology Driving Market Growth– Improvements in resolution technology have increased user engagement and preference, driving rapid market growth. The impressive graphics in video games are best experienced through high-definition displays, such as HD, FHD, UHD, and 4K. These high-definition screens, offering 720p and 1080p resolutions, have significantly boosted the demand for more realistic games. For example, plans to introduce new external displays with advanced refresh rate technology highlight the industry’s ongoing commitment to enhancing the gaming experience with high-resolution visuals.

Restraining Factors for the Global Video Games Market

Health Issues and Cybersecurity Concerns Limiting Market Expansion– Health issues and addiction concerns are limiting market expansion. Global worries about gaming addiction and its link to violence, depression, and aggression in children have led to bans on mentally disturbing games and restrictions on playtime. For instance, some countries limit gaming time for minors. Data breaches and cybersecurity risks associated with cloud gaming advancements have also prompted bans, impacting consumer behavior and market growth. Excessive violence in games has led to censorship in countries, increasing development costs as developers create customized versions to comply with government regulations. These factors collectively hinder market proliferation and user engagement.

What is the current structure of the Global Video Games Market?

Based on Devices, the PC/Laptop segment dominates the Global Video Games Market during the forecast period

The market is divided into smartphones, PCs/laptops, and consoles. The PC/laptop segment is witnessing considerable growth due to the rising popularity of PC gaming and consoles among Generation Y, though smartphones dominate the market share. The global proliferation of smartphones, along with increasingly robust 5G networks and cloud-based infrastructure, has significantly increased the number of mobile gamers. Smartphones, now an essential part of daily life, combined with the availability of high-speed internet, have made them a major source of entertainment. Technological advancements in smartphones have transformed gaming habits, leading to exponential growth in the mobile gaming sector and opening new market opportunities.

Based on Platform Type, the Online segment will lead with the largest market revenue in the Global Video Games Market

The video game market is segmented into online and offline platforms. Online gaming dominates, fueled by technological advancements, widespread internet access, and innovations in gaming smartphones. Genres like First-Person Shooter (FPS), Real-Time Strategy (RTS), Massively Multiplayer Online (MMO), Multiplayer Online Battle Arena (MOBA), and Battle Royale games thrive in this segment. For instance, Tencent expanded its XR division in June 2022 to enhance VR products. The rapid internet expansion, especially in developing countries like India, facilitated by initiatives such as Hughes Communications’ HTS broadband service in collaboration with ISRO, has spurred developers to create more multiplayer games to meet growing demand.

Based on Application, the Kid’s segment dominates the market of Video Games with the highest CAGR

Based on application, the global video game market is segmented into children, adults, and others. The children’s segment led the market, accounting for over 60% of revenue in 2019. This dominance is due to the increasing trend of gaming among children and teenagers, which is expected to drive demand across various platforms, including mobile phones and consoles. The adult segment is also expected to grow at a significant compound annual growth rate (CAGR) during the forecast period. The rising popularity of online and multiplayer games among millennials is a key factor contributing to the growth of this segment.

Based on Regional Analysis, the North American region is leading the Global Video Games Market

North America led the global video game market in revenue share in 2019. Companies in the region are focusing on creating innovative games across various platforms, driving regional growth. The Asia-Pacific region is expected to be the fastest-growing area during the forecast period. This rapid growth is due to the increasing popularity of mobile gaming, rising disposable income, and the presence of numerous game development companies in countries such as China, India, Japan, and South Korea.

Competitive Analysis

To draw in a sizable consumer base and obtain a competitive advantage in the market, the major market companies are concentrating on creating cutting-edge gaming solutions. Additionally, there’s a big movement toward creating more interactive games and using VR and AR in gaming. For example, Electronics Art Inc. released Super Mega Baseball 4, the most recent installment of the wildly popular Super Mega Baseball series, in June 2023. The most significant presentational update in the history of the series is included in Super Mega Baseball 4. Some of the major players operating in the market includes Activision Blizzard; Apple Inc.; Disney; Electronic Arts Inc.; Lucid Games; Microsoft; Nintendo; Rovio Entertainment Corp.; Sony Interactive Entertainment Inc.; Tencent Holdings Ltd. And others

Market Segmentation

By Devices

• Smartphones
• PC/Laptops
• Consoles

By Platform Type

• Online
• Offline

By Application

• Kids
• Teenagers
• Adults
• Senior citizens

By Regional Analysis

Asia-Pacific

• China
• India
• Japan
• Australia
• Rest of Asia-Pacific

North America

• United States
• Mexico
• Canada

Europe

• United Kingdom
• France
• Germany
• Italy
• Spain
• Rest of Europe

South America

• Brazil
• Argentina
• Rest of South America

Middle East & Africa

• UAE
• South Africa

Major Market Key Players Global Video Games Market

• Xbox
• PlayStation
• Power A
• 8Bitdo
• Turtle Beach
• AmazonBasics
• PDP
• ASTRO Gaming