North America Game Engine Market Size, Share & Trends Analysis Report By Type (3D Game Engines, 2.5D Game Engines, 2D Game Engines), By Application (PC and Console Games, Mobile Games, TV Games) and By Country(U.S., Canada, Mexico) Forecasts, 2024-2032

Market Overview

The North America game engine market size witnessed significant growth in the past and is expected to grow at a CAGR of 12.57% during the forecast period (2022-2030).

Highlights

• 3D Game Engines dominate the market by type.
• PC and Console Games dominate the market by application.
• The U.S. dominated the market by region.

A game engine is an essential software or a collection of software tools that facilitate the creation and advancement of video games across multiple platforms. It allows developers to incorporate graphics, physics, audio, and input features into their games. Typically, game engines are accompanied by dedicated development tools that enable users to modify script files for game levels within an open environment.

The growth of the North American market is propelled by the increasing affordability of the population in the region and its strong economic foundation, along with the adoption of advanced technologies. According to the Entertainment Software Association's 2020 report, a notable trend of older individuals, including men (46%) and women (63%) aged over 65, engage in video games. This indicates that older demographics increasingly embrace video gaming, with a significant portion starting playing within the last decade.

Market Dynamics

Market Drivers

Development in Technologies Such as Augmented Reality (AR) and Virtual Reality (VR)

In North America, the growth of technologies like Augmented Reality (AR) and Virtual Reality (VR) is a major driving force in the game engine market. These technologies are revolutionizing how consumers engage with entertainment, particularly movies and games. As gadgets become more advanced and capable of rendering realistic effects, there is an increasing demand for game engines with enhanced capabilities and real-time features. The concept of augmented reality in gaming is relatively new but gaining momentum. It allows developers to create games that seamlessly interact with the real world. Augmented reality in computer programs introduces novel interactive experiences for gamers that were previously impossible.

Growing Gaming Industry

In North America, by 2025, The game engine market has experienced significant growth due to the expanding gaming industry, particularly in the development of 3D games. Gaming has seen widespread adoption over the years, and the demand for video games further surged during the pandemic. According to a report by the Entertainment Software Association in 2020, more than 214 million individuals in the United States play video games for at least an hour per week. Video gaming is prevalent in 75% of U.S. households, and a significant proportion of adults (64%) and individuals under 18 (70%) regularly engage in gaming. A key factor contributing to this success is the availability of user-friendly "end-to-end" game engines that enable businesses to innovate, launch, and iterate their products more efficiently and effectively.

Market Restraints

High Cost of Game Engine Software

The games market is experiencing rapid growth; however, the industry faces challenges regarding the cost of game development, including expensive engine software and hardware requirements. Many game engines come with a hefty price tag, and high-end computers or consoles are necessary to run them. This poses a financial barrier for individual developers and adds complexity to the game development process, as they require substantial funds to bring their ideas and projects to fruition effectively and efficiently.

Furthermore, the intense competition within the industry and the constantly evolving customer demands and preferences make it challenging to achieve successful sales. This can result in fewer investments in research and development by software providers, making the market less appealing for new businesses seeking to enter the gaming area.

Market Opportunity

Improved Infrastructure, Such as Better Broadband and Wi-Fi Connection

The game engine market is poised for continued growth due to the increasing accessibility of faster internet connections and the advancement of Internet of Things (IoT) technology. With more individuals opting to spend their leisure time on smartphones or computer browsers rather than traditional television, a growing connected user base is dedicating more time to playing games. The wireless telecommunications sector has witnessed significant technological advancements, improving network availability and performance. Mobile broadband networks and Wi-Fi technology have particularly seen rapid development, enabling seamless connectivity across network hardware consoles and local area networks. These advancements have also enhanced online multiplayer gaming through dedicated servers and online data storage facilities. Additionally, cloud gaming has gained prominence within the gaming industry, further contributing to its evolution.

Regional Analysis

The game engine market is segmented by country: The U.S., Mexico, and Canada. The U.S. dominated the market with a CAGR of 12.83% during the forecast period.

The North America game engine market is a dominant force in the global gaming industry. The region's large user base and strong technological infrastructure showcase significant growth potential. The presence of leading game engine companies, a vibrant indie game development scene, and high consumer demand drive innovation and market expansion in North America.

The U.S.

The US game engine market is a significant player in the global gaming industry. With a strong presence of established game development companies and a large consumer base, the market is driven by technological advancements, high demand for immersive gaming experiences, and eSports and virtual reality gaming popularity.

Canada

The game engine market in Canada exhibits a strong presence fueled by the country's thriving gaming industry. With a growing number of game developers and studios, the demand for game engines is rising. Additionally, government support and favorable policies further contribute to Canada’s market’s growth and innovation.

Segmental Analysis

The North America game engine market is segmented into types and applications.

By type, it is further segmented into 3D game engines, 2.5 game engines, and 2D game engines.

3D game engines dominated the market and are expected to register a CAGR of 12.78% over the forecast period.

It is further segmented by application into PC and console games, mobile games, and TV games.

PC and console games dominated the market and are expected to register a CAGR of 12.59% over the forecast period.

Impact of covid-19

Recent Developments

• October 2021 – Unity Technologies launched a new platform, Unity Gaming Services that unifies the company’s existing Operate Solutions for games and introduces new tools and services.
• August 2021 – Unity Technologies announced the acquisition of Parsec, a remote desktop and streaming technology company that allows gaming and creative professionals to work together from anywhere.
• March 2021 – Epic Games announced it is developing a PC Building Simulator 2 this year. This is the sequel to the PC building simulator.